INSURED MUNICIPALS INCOME TRUST 186TH INSURED MULTI SERIES
487, 1995-10-16
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                                                     File No. 33-63127
                                                           CIK #896321

                   Securities and Exchange Commission
                      Washington, D.C.  20549-1004

                             Amendment No. 1
                                   To
                                Form S-6

For Registration under the Securities Act of 1933 of Securities of Unit
Investment Trusts Registered on Form N-8B-2.

A.   Exact Name of Trust:      Insured Municipals Income Trust
                               186th Insured Multi-Series

B. Name of Depositor:          Van Kampen American Capital
                               Distributors, Inc.

C. Complete address of Depositor's principal executive offices:

                              One Parkview Plaza
                              Oakbrook Terrace, Illinois  60181

D. Name and complete address of agents for service:

Chapman and Cutler            Van Kampen American Capital Distributors, Inc
Attention:  Mark J. Kneedy          Attention:  Don G. Powell
111 W. Monroe Street          One Parkview Plaza
Chicago, Illinois  60603      Oakbrook Terrace, Illinois  60181
                    

E. Title and amount of securities being registered: 13,826 * Units

F. Proposed maximum offering price to the public of the securities
   being registered: ($1020 per Unit**):  $14,102,520

G. Amount of filing fee, computed at one twenty-ninth of 1 percent
   of proposed maximum aggregate offering price to the public:
                   $4862.94 ($351.72 previously paid)

H. Approximate date of proposed sale to the 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
     on October 16, 1995 at 2:00 P.M.
     pursuant to Rule 487.


* 9,217 Units registered for primary distribution.
  4,609 Units registered for resale by Depositor of Units
          previously sold in primary distribution.
**      Estimated solely for the purpose of calculating the
        registration fee.




    Form N-8B-2                              Form S-6
     Item Number                        Heading in Prospectus
                                   --
                    Insured Municipals Income Trust,

                       186th Insured Multi-Series
                                    
                          Cross Reference Sheet

                 Pursuant to Rule 404(c) of Regulation C
                    under the Securities Act of 1933
                                    
               (Form N-8B-2 Items Required by Instruction
                     1 as to Prospectus on Form S-6)

         Form N-8B-2                               Form S-6
         Item Number                         Heading in Prospectus

                   I.  Organization and General Information

1.   (a)  Name of trust)                )
     (b)  Title of securities issued    ) Prospectus Front Cover Page

2.   Name and address of Depositor      ) Introduction
                                        ) Summary of Essential Financial
                                        )   Information
                                        ) Trust Administration

3.   Name and address of Trustee        ) Introduction
                                        ) Summary of Essential Financial
                                        )   Information
                                        ) Trust Administration

4.   Name and address of principal      ) Underwriting
       underwriter                      )

5.   Organization of trust              ) Introduction

6.   Execution and termination of       ) Introduction
       Trust Indenture and Agreement    ) Trust Administration

7.   Changes of Name                    ) *

8.   Fiscal year                        ) *

9.   Material Litigation                ) *


    II.  General Description of the Trust and Securities of the Trust

10.  General information regarding      ) Introduction
       trust's securities and rights    ) Unitholder Explanations
       of security holders              ) Trust Information
                                        ) Trust Administration

11.  Type of securities comprising      ) Introduction
       units                            ) Trust Information
                                        ) Trust Portfolios

12.  Certain information regarding      ) *
       periodic payment certificates    )

13.  (a)  Load, fees, charges and expenses)    Introduction
                                        ) Summary of Essential Financial
                                        )   Information
                                        ) Unitholder Explanations
                                          Trust Information
                                          Trust Administration

     (b)  Certain information regarding )
           periodic payment plan        ) *
           certificates                 )

     (c)  Certain percentages           ) Introduction
                                        ) Summary of Essential Financial
                                        )   Information
                                        ) Unitholder Explanations

     (d)  Certain other fees, expenses or)  Unitholder Explanations
            charges payable by holders  ) Trust Administration

     (e)  Certain profits to be received  )  Unitholder Explanations
           by depositor, principal      ) Underwriting
           underwriter, trustee or      ) Notes to Portfolios
           affiliated persons           )

     (f)  Ratio of annual charges to income)    *
                                        )

14.  Issuance of trust's securities     ) Unitholder Explanations

15.  Receipt and handling of payments   ) *
       from purchasers                  )

16.  Acquisition and disposition of     ) Introduction
       underlying securities            ) Unitholder Explanations
                                        )  Trust Administration
17.  Withdrawal or redemption           ) Unitholder Explanations
                                        )  Trust Administration
18.  (a)  Receipt and disposition       ) Introduction
           of income                    ) Unitholder Explanations

     (b)  Reinvestment of distributions ) *

     (c)  Reserves or special funds     ) Unitholder Explanations
                                        ) Trust Administration
     (d)  Schedule of distributions     ) *

19.  Records, accounts and reports      ) Unitholder Explanations
       Trust Administration             )

20.  Certain miscellaneous provisions   ) Trust Administration
       of Trust Agreement               )

21.  Loans to security holders          ) *

22.  Limitations on liability           ) Trust Portfolios
                                        ) Trust Administration

23.  Bonding arrangements               ) *

24.  Other material provisions of       ) *
       trust indenture or agreement     )


    III.  Organization, Personnel and Affiliated Persons of Depositor

25.  Organization of Depositor          ) Trust Administration

26.  Fees received by Depositor         ) Trust Administration

27.  Business of Depositor              ) Trust Administration
28.  Certain information as to          )
       officials and affiliated         ) *
       persons of Depositor             )

29.  Companies owning securities of     ) *
       Depositor                        )

30.  Controlling persons of Depositor   ) *

31.  Compensation of Directors          ) *

32.  Compensation of Directors          ) *

33.  Compensation of Employees          ) *

34.  Compensation to other persons      ) Unitholder Explanations


             IV.  Distribution and Redemption of Securities

35.  Distribution of trust's securities Introduction
       by states                        Settlement of Bonds in the Trusts

36.  Suspension of sales of trust's     ) *
       securities                       )

37.  Revocation of authority to distribute) *

38.  (a)  Method of distribution        )

     (b)  Underwriting agreements       ) Unitholder Explanations

     (c)  Selling agreements            )

39.  (a)  Organization of principal     )
           underwriter                  )
                                        ) Trust Administration
     (b)  N.A.S.D. membership by        )
           principal underwriter        )

40.  Certain fees received by           ) *
       principal underwriter            )

41.  (a)  Business of principal underwriter)    Trust Administration
                                        )

     (b)  Branch offices of principal   ) *
           underwriter                  )

     (c)  Salesmen of principal underwriter) *
                                        )

42.  Ownership of securities of the trust) *
                                        )

43.  Certain brokerage commissions      ) *
       received by principal underwriter)

44.  (a)  Method of valuation           ) Introduction
                                        ) Summary of Essential Financial
                                        )   Information
                                        ) Unitholder Explanations
                                        ) Trust Administration

     (b)  Schedule as to offering price ) *

     (c)  Variation in offering price   ) Unitholder Explanations
           to certain persons           )

45.  Suspension of redemption rights    ) *

46.  (a)  Redemption valuation          ) Unitholder Explanations
                                        ) Trust Administration

     (b)  Schedule as to redemption price) *
                                        )

47.  Purchase and sale of interests     ) Unitholder Explanations
       in underlying securities         ) Trust Administration


           V.  Information Concerning the Trustee or Custodian

48.  Organization and regulation of trustee) Trust Administration
                                        )

49.  Fees and expenses of trustee       ) Summary of Essential Financial
                                        )   Information
                                        ) Trust Administration

50.  Trustee's lien                     ) Trust Administration


     VI.  Information Concerning Insurance of Holders of Securities

51.  Insurance of holders of trust's    )
       securities                       ) *


                       VII.  Policy of Registrant

52.  (a)  Provisions of trust agreement ) Trust Administration
           with respect to replacement or )
           elimination of portfolio securities)

     (b)  Transactions involving elimination)
           of underlying securities     ) *

     (c)  Policy regarding substitution or)    Trust Administration
           elimination of underlying securities)

     (d)  Fundamental policy not        ) *
           otherwise covered            )

53.  Tax Status of trust                ) Trust Information
                                        ) Other Matters


              VIII.  Financial and Statistical Information

54.  Trust's securities during last ten years)    *

55.                                     )

56.  Certain information regarding      ) *

57.  periodic payment certificates      )

58.                                     )

59.  Financial statements (Instructions ) Other Matters
       1(c) to Form S-6)                )

_________________________________
* Inapplicable, omitted, answer negative or not required
 


Information contained herein is subject to completion or amendment. A
registration statement relating to these securities 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 shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
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 State. 
   
              Preliminary Prospectus Dated October 16, 1995
                          Subject To Completion 

October 16, 1995

Van Kampen American Capital

Insured Municipals Income Trust, 186th Insured Multi-Series


Colorado IM-IT 77
New Jersey IM-IT 106
Pennsylvania IM-IT 208
    


In the opinion of counsel, interest to the Fund and to Unitholders, with
certain exceptions, is excludable under existing law from gross income for
Federal income taxes. In addition, the interest income of each State Trust is,
in the opinion of counsel, exempt to the extent indicated from state and local
taxes, when held by residents of the state where the issuers of Bonds in such
Trust are located. Capital gains, if any, are subject to Federal tax.
   
The Fund. The objectives of the Fund are Federal and, in the case of a State
Trust, state tax-exempt income and conservation of capital through an
investment in a diversified portfolio of tax-exempt bonds. The Fund consists
of three underlying separate unit investment trusts designated as Colorado
Insured Municipals Income Trust, Series 77 (the "Colorado IM-IT Trust" 
), New Jersey Insured Municipals Income Trust, Series 106 (the "New Jersey
IM-IT Trust" ) and Pennsylvania Insured Municipals Income Trust, Series 208
(the "Pennsylvania IM-IT Trust" ). The various trusts are collectively
referred to herein as the "Trusts" , the "State Trusts" or the
"Insured Trusts" . Each Trust initially consists of delivery statements
relating to contracts to purchase securities and, thereafter, will consist of
such securities as may continue to be held (the "Bonds" or 
"Securities" ). Such Securities are interest-bearing obligations issued by
or on behalf of municipalities and other governmental authorities, the
interest on which is, in the opinion of recognized bond counsel to the issuing
governmental authority, exempt from all Federal income taxes under the
existing law. In addition, the interest income of each State Trust is, in the
opinion of counsel, exempt to the extent indicated from state and local taxes,
when held by residents of the state where the issuers of Bonds in such Trust
are located.

"AAA" Rating for the Insured Trusts. Insurance guaranteeing the
payments of principal and interest, when due, on the Securities in the
portfolio of each Insured Trust has been obtained from a municipal bond
insurance company either by such Trust or by the issuer of the Bonds involved,
by a prior owner of the Bonds or by the Sponsor prior to the deposit of such
Bonds in an Insured Trust. See "Unitholder Explanations--Insurance on the
Bonds in the Insured Trusts" on page 21. Insurance obtained by an Insured
Trust applies only while Bonds are retained in such Trust while insurance
obtained on Preinsured Bonds is effective so long as such Bonds are
outstanding. The Trustee, upon the sale of a Bond insured under an insurance
policy obtained by an Insured Trust, has a right to obtain from the insurer
involved permanent insurance for such Bond upon the payment of a single
predetermined insurance premium and any expenses related thereto from the
proceeds of the sale of such Bond. Insurance relates only to the Bonds in a
Trust and not to the Units offered hereby or to the market value thereof. As a
result of such insurance, the Units of each Insured Trust have received a
rating of "AAA" by Standard & Poor's, A Division of the McGraw-Hill
Companies. Standard & Poor's has indicated that this rating is not a
recommendation to buy, hold or sell Units nor does it take into account the
extent to which expenses of each Insured Trust or sales by each Insured Trust
of Bonds for less than the purchase price paid by such Trust will reduce
payments to Unitholders of the interest and principal required to be paid on
such Bonds. See "Unitholder Explanations--Insurance on the Bonds in the
Insured Trusts" . No representation is made as to any insurer's ability to
meet its commitments.

Public Offering Price. The Public Offering Price of the Units of each Trust
during the initial offering period is equal to the aggregate offering price of
the Securities in such Trust's portfolio and cash, if any, in the Principal
Account held or owned by such Trust Fund plus the applicable sales charge plus
accrued interest, if any. After the initial public offering period, the
secondary market Public Offering Price of each Trust will be equal to the
aggregate bid price of the Securities in such Trust and cash, if any, in the
Principal Account held or owned by such Trust Fund plus the applicable sales
charge plus accrued interest, if any. Sales charges for the Trusts in the
initial market, expressed both as a percentage of the Public Offering Price
and as a percentage of the aggregate offering price of the Securities, are set
forth in footnote (2) under "Summary of Essential Financial
Information" . For sales charges in the secondary market, see 
"Unitholder Explanations--Public Offering" . If the Securities in each Trust
were available for direct purchase by investors, the purchase price of the
Securities would not include the sales charge included in the Public Offering
Price of the Units. During the initial offering period, the sales charge is
reduced on a graduated scale for sales involving at least 100 Units. If Units
were available for purchase at the close of business on the day before the
Date of Deposit (except for the Pennsylvania IM-IT Trust as of 8:00 A.M.
Central Time on the Date of Deposit), the Public Offering Price per Unit would
have been that amount set forth in the "Summary of Essential Financial
Information" for each Trust. The minimum purchase requirement is one Unit
except for certain transactions described under "Trust
Administration--Unit Distribution" . See "Unitholder Explanations--Public 
Offering".
    
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
   
Estimated Current Return and Estimated Long-Term Return. The annual Estimated
Current Returns and Estimated Long-Term Returns to Unitholders as of the close
of business on the day before the Date of Deposit (except for the Pennsylvania
IM-IT Trust as of 8:00 A.M. Central Time on the Date of Deposit) under the
monthly and semi-annual distribution plans were as set forth under "Per
Unit Information" for each Trust. The methods of calculating Estimated
Current Return and Estimated Long-Term Return are set forth in the footnotes
to the "Per Unit Information" for each Trust.
    
Objectives of The Fund. The objectives of the Fund are income exempt from
Federal income tax and, in the case of a State Trust, Federal and state income
tax (if any) and conservation of capital through an investment in diversified
portfolios of Federal and state tax-exempt obligations. There is, of course,
no guarantee that the Fund will achieve its objectives. The Fund may be an
appropriate investment vehicle for investors who desire to participate in a
portfolio of tax-exempt fixed income securities with greater diversification
than they might be able to acquire individually. In addition, securities of
the type deposited in the Fund are often not available in small amounts. Units
of the Trust are not deposits or obligations of, or guaranteed or endorsed by,
any bank and are not federally insured or otherwise protected by the Federal
Deposit Insurance Corporation, the Federal Reserve Board or any other agency
and involve investment risk, including the possible loss of principal.

Distribution Options. Purchasers of Units who desire to receive distributions
on a monthly or semi-annual basis may elect to do so at the time of settlement
during the initial public offering period. See "Unitholder
Explanations--Settlement of Bonds in the Trusts--Change of Distribution
Option" . The plan of distribution selected by such purchasers will remain
in effect until changed. Those indicating no choice will be deemed to have
chosen the monthly distribution plan. Record dates for monthly distributions
will be the first day of each month and record dates for semi-annual
distributions will be the first day of the months indicated under "Per
Unit Information" for the applicable Trust. Distributions will be made on
the fifteenth day of the month subsequent to the respective record dates.

Market for Units. Although not obligated to do so, the Sponsor, Van Kampen
American Capital Distributors, Inc., intends to, and certain of the other
Underwriters may, maintain a secondary market for the Units at prices based
upon the aggregate bid prices of the Securities in the respective Trusts plus
interest accrued to the date of settlement; however, during the initial
offering period such prices will be based upon the aggregate offering prices
of the Securities plus interest accrued to the date of settlement. If such a
market is not maintained and no other over-the-counter market is available, a
Unitholder will be able to dispose of his Units only through redemption at
prices based upon the bid prices of the underlying Securities plus interest
accrued to the date of settlement (see "Unitholder Explanations--Public
Offering--Redemption of Units" and "Unitholder Explanations--Public
Offering--Market for Units" ).

Reinvestment Option. Unitholders have the opportunity to have their
distributions reinvested into an open-end, management investment company as
described herein. See "Unitholder Explanations--Public
Offering--Reinvestment Option" .

Risk Factors. An investment in the Trusts should be made with an understanding
of the risks associated therewith, including, among other factors, the
inability of the issuer or an insurer to pay the principal of or interest on a
bond when due, volatile interest rates, early call provisions, and changes to
the tax status of the Bonds. See "Unitholder Explanations--Settlement of
Bonds in the Trusts--Risk Factors" .




   
<TABLE>
                            INSURED MUNICIPALS INCOME TRUST
                               186th Insured Multi-Series
                   Summary of Essential Financial Information
    At the Close of Business on the day before the Date of Deposit: October 13, 1995
        (except for the Pennsylvania IM-IT Trust as of 8:00 A.M. Central Time
                  on the Date of Deposit: October 16, 1995)
Sponsor:    Van Kampen American Capital Distributors, Inc.
Evaluator:  American Portfolio Evaluation Services
            (A division of a subsidiary of the Sponsor)
Trustee:    The Bank of New York

<CAPTION>
                                                                                        Colorado      New Jersey    Pennsylvania 
GENERAL INFORMATION                                                                     IM-IT Trust   IM-IT Trust   IM-IT Trust  
<S>                                                                                     <C>           <C>           <C>          
Principal Amount (Par Value) of Securities in Trust <F1>............................... $   3,000,000 $   3,045,000 $   2,950,000
Number of Units........................................................................         3,077         3,118         3,022
Fractional Undivided Interest in the Trust per Unit....................................       1/3,077       1/3,118       1/3,022
Principal Amount (Par Value) of Securities per Unit <F2>............................... $      974.98 $      976.59 $      976.17
Public Offering Price: ................................................................                                          
 Aggregate Offering Price of Securities in Portfolio................................... $   2,926,242 $   2,965,231 $   2,873,941
 Aggregate Offering Price of Securities per Unit....................................... $      951.00 $      951.00 $      951.01
 Sales Charge <F3>..................................................................... $       49.00 $       49.00 $       48.99
 Public Offering Price per Unit <F4>................................................... $    1,000.00 $    1,000.00 $    1,000.00
Redemption Price per Unit <F4>......................................................... $      943.96 $      943.56 $      943.89
Secondary Market Repurchase Price per Unit <F4>........................................ $      951.00 $      951.00 $      951.01
Excess of Public Offering Price per Unit Over Redemption Price per Unit................ $       56.04 $       56.44 $       56.11
Excess of Sponsor's Initial Repurchase Price per Unit Over Redemption Price per Unit... $        7.04 $        7.44 $        7.12
Minimum Value of the Trust under which Trust Agreement may be terminated............... $     600,000 $     609,000 $     590,000
</TABLE>






<TABLE>
<CAPTION>
<S>                                      <C>  
Minimum Principal Distribution...........$1.00 per Unit                               
First Settlement Date....................October 19, 1995                             
Evaluator's Annual Supervisory Fee.......Maximum of $0.25 per Unit                    
Evaluator's Annual Evaluation Fee <F5>...$0.30 per $1,000 principal amount of Bonds   


<FN>
<F1>Evaluations for purpose of sale, purchase or redemption of Units are made as
of 4:00 P.M. Eastern time on days of trading on the New York Stock Exchange
next following receipt of an order for a sale or purchase of Units or receipt
by The Bank of New York of Units tendered for redemption.

<F2>Because certain of the Securities in certain Trusts may from time to time
under certain circumstances be sold or redeemed or will be called or mature in
accordance with their terms (including the call or sale of zero coupon bonds
at prices less than par value), there is no guarantee that the value of each
Unit at the respective Trusts' termination will be equal to the Principal
Amount (Par Value) of Securities per Unit stated above.

<F3>Many unit investment trusts comprised of municipal securities issue a number
of units such that each unit represents approximately $1,000 principal amount
of underlying securities. The Sponsor, on the other hand, in determining the
number of Units for each Trust, other than IM-IT Limited Maturity, IM-IT
Intermediate and IM-IT Short Intermediate Trusts, has elected not to follow
this format but rather to provide that number of Units which will establish as
close as possible as of the Date of Deposit a Public Offering Price per Unit
of $1,000. For IM-IT Limited Maturity, IM-IT Intermediate and IM-IT Short
Intermediate Trusts, on the other hand, each unit represents $1,000 principal
amount of underlying securities in such Trust on the Date of Deposit.

<F4>Sales charges for the Trusts, expressed as a percentage of the Public Offering
Price per Unit and in parenthesis as a percentage of the aggregate offering
price of the Securities, are as follows: a State Trust- 4.9% (5.152%); an
IM-IT Limited Maturity Trust - 4.3% (4.493%); an IM-IT Intermediate Trust -
3.9% (4.058%); an IM-IT Short Intermediate Trust- 3.0% (3.093%).

<F5>Anyone ordering Units for settlement after the First Settlement Date will pay
accrued interest from such date to the date of settlement (normally three
business days after order) less distributions from the Interest Account
subsequent to the First Settlement Date. For purchases settling on the First
Settlement Date, no accrued interest will be added to the Public Offering
Price. After the initial offering period, the Sponsor's Repurchase Price per
Unit will be determined as described under the caption "Public
Offering--Market for Units." 

<F6>Such fee is based on the outstanding principal amount of Securities in each
Trust on the Date of Deposit for the first year and as of the close of
business on January 1 for each year thereafter.
</TABLE>
    

SETTLEMENT OF BONDS IN THE TRUSTS
   
The Fund. Insured Municipals Income Trust, 186th Insured Multi-Series (the
"Fund" ), was created under the laws of the State of New York pursuant
to a Trust Indenture and Agreement (the "Trust Agreement" ), dated the
Date of Deposit, among Van Kampen American Capital Distributors, Inc., as
Sponsor, American Portfolio Evaluation Services, a division of Van Kampen
American Capital Investment Advisory Corp., as Evaluator, and The Bank of New
York, as Trustee.

The Fund consists of three separate portfolios of delivery statements relating
to contracts to purchase interest-bearing obligations issued by or on behalf
of states and territories of the United States, and political subdivisions and
authorities thereof, the interest on which is, in the opinion of recognized
bond counsel to the issuing authorities, excludable from gross income for
Federal income tax under existing law. All issuers of Securities in a State
Trust are located in the State for which such Trust is named or in United
States territories or possessions and their public authorities; consequently,
in the opinion of recognized bond counsel to such State issuers, the related
interest earned on such Securities is exempt to the extent indicated from
state and local taxes of such State. With the exception of the New York and
Pennsylvania Trusts, Units of such Trusts may be purchased only by residents
of the State for which such Trust is named. Units of a New York Trust may be
purchased by residents of New York, Connecticut, Florida and Massachusetts.
Units of a Pennsylvania Trust may be purchased by residents of Pennsylvania,
Connecticut, Florida, Maryland, New York, Ohio and West Virginia. On the Date
of Deposit, the Sponsor deposited with the Trustee the aggregate principal
amount of Securities in each Trust as indicated under "General
Information--Principal Amount (Par Value) of Securities in Trust" in the
"Summary of Essential Financial Information" . Such Securities consist
of delivery statements relating to contracts for the purchase of certain
interest-bearing obligations and cash, cash equivalents and/or irrevocable
letters of credit issued by a financial institution in the amount required for
such purchases. Thereafter, the Trustee, in exchange for the Securities so
deposited, delivered to the Sponsor the certificates evidencing the ownership
of the number of Units in each Trust as indicated under "Summary of
Essential Financial Information." Unless otherwise terminated as provided
herein, the Trust Agreement for any State Trust will terminate at the end of
the calendar year prior to the fiftieth anniversary of its execution, and the
Trust Agreement for any IM-IT Limited Maturity Trust, IM-IT Intermediate Trust
or IM-IT Short Intermediate Trust will terminate at the end of the calendar
year prior to the twentieth anniversary of its execution.
    
The portfolio of any State Trust consists of Bonds maturing approximately 15
to 40 years from the Date of Deposit. The approximate range of maturities from
the Date of Deposit for Bonds in any IM-IT Limited Maturity Trust, IM-IT
Intermediate Trust and IM-IT Short Intermediate Trust is 12 to 15 years, 5 to
15 years and 3 to 7 years, respectively. The dollar-weighted average maturity
of the Bonds in any IM-IT Intermediate Trust and IM-IT Short Intermediate
Trust is less than or equal to 10 years and 5 years, respectively.

The portfolios of the Trusts may consist of bonds that were acquired at a
market discount from par value at maturity. The coupon interest rates on the
discount bonds at the time they were purchased and deposited in such Trust
were lower than the current market interest rates for newly issued bonds of
comparable rating and type. If such interest rates for newly issued comparable
bonds increase, the market discount of previously issued bonds will become
greater, and if such interest rates for newly issued comparable bonds decline,
the market discount of previously issued bonds will be reduced, other things
being equal. Investors should also note that the value of bonds purchased at a
market discount will increase in value faster than bonds purchased at a market
premium if interest rates decrease. Conversely, if interest rates increase,
the value of bonds purchased at a market discount will decrease faster than
bonds purchased at a market premium. In addition, if interest rates rise, the
prepayment risk of higher yielding, premium bonds and the prepayment benefit
for lower yielding, discount bonds will be reduced. A bond purchased at a
market discount and held to maturity will have a larger portion of its total
return in the form of taxable income and capital gain and less in the form of
tax-exempt interest income than a comparable bond newly issued at current
market rates. See "Other Matters--Federal Tax Status." Market discount
attributable to interest changes does not indicate a lack of market confidence
in the issue. Neither the Sponsor nor the Trustee shall be liable in any way
for any default, failure or defect in any of the Bonds.

Certain of the Bonds in certain of the Trusts may be "zero coupon" 
bonds. See footnote (6) in "Notes to Portfolios" . Zero coupon bonds
are purchased at a deep discount because the buyer receives only the right to
receive a final payment at the maturity of the bond and does not receive any
periodic interest payments. The effect of owning deep discount bonds which do
not make current interest payments (such as the zero coupon bonds) is that a
fixed yield is earned not only on the original investment but also, in effect,
on all discount earned during the life of such obligation. This implicit
reinvestment of earnings at the same rate eliminates the risk of being unable
to reinvest the income on such obligation at a rate as high as the implicit
yield on the discount obligation, but at the same time eliminates the holder's
ability to reinvest at higher rates in the future. For this reason, zero
coupon bonds are subject to substantially greater price fluctuations during
periods of changing market interest rates than are securities of comparable
quality which pay interest.

Certain of the Bonds in certain of the Trusts may have been purchased on a
"when, as and if issued" or "delayed delivery" basis. See
footnote (5) in "Notes to Portfolios" . The delivery of any such
Securities may be delayed or may not occur. Interest on these Securities
begins accruing to the benefit of Unitholders on their respective dates of
delivery. To the extent any Securities are actually delivered to the Fund
after their respective expected dates of delivery, Unitholders who purchase
their Units prior to the date such Securities are actually delivered to the
Trustee would be required to adjust their tax basis in their Units for a
portion of the interest accruing on such Securities during the interval
between their purchase of Units and the actual delivery of such Securities. As
a result of any such adjustment, the Estimated Current Returns during the
first year would be slightly lower than those stated herein which would be the
returns after the first year, assuming the portfolio of a Trust and estimated
annual expenses other than that of the Trustee (which may be reduced in the
first year only) do not vary from that set forth under "Per Unit
Information" for the applicable Trust. Holders of the Units will be 
"at risk" with respect to all Securities in the portfolios including 
"when, as and if issued" and "delayed delivery" Securities (i.e.,
may derive either gain or loss from fluctuations in the evaluation of such
Securities) from the date they commit for Units. For a discussion of the
Sponsor's obligations in the event of the failure of any contract for the
purchase of any of the Securities and limited right to substitute other
tax-exempt bonds to replace any failed contract, see "Replacement
Bonds" below.

Each Unit initially offered represents the fractional undivided interest in
the principal and net income of a Trust indicated under "Summary of
Essential Financial Information" . To the extent that any Units are
redeemed by the Trustee, the fractional undivided interest in a Trust
represented by each unredeemed Unit will increase, although the actual
interest in such Trust represented by such fraction will remain unchanged.
Units will remain outstanding until redeemed upon tender to the Trustee by
Unitholders, which may include the Sponsor or the Underwriters, or until the
termination of the Trust Agreement.

Objectives and Securities Selection. The objectives of the Fund are income
exempt from Federal income taxation and, in the case of a State Trust, Federal
and state income taxation and conservation of capital through an investment in
diversified portfolios of Federal and state tax-exempt obligations. There is,
of course, no guarantee that the Trusts will achieve their respective
objectives. The Fund may be an appropriate investment vehicle for investors
who desire to participate in a portfolio of tax-exempt fixed income securities
with greater diversification than they might be able to acquire individually.
In addition, securities of the type deposited in the Fund are often not
available in small amounts.

Insurance guaranteeing the timely payment, when due, of all principal and
interest on the Bonds in each Insured Trust has been obtained by such Trust
from either AMBAC Indemnity Corporation ("AMBAC Indemnity" ), Financial
Guaranty Insurance Company ("Financial Guaranty" or "FGIC" ) or
a combination thereof (collectively, the "Portfolio Insurers" ), or by
the issuer of such Bonds, by a prior owner of such Bonds, or by the Sponsor
prior to the deposit of such Bonds in such Trust from (1) AMBAC Indemnity or
one of its subsidiaries, American Municipal Bond Assurance Corporation 
("AMBAC" ) or MGIC Indemnity Corporation ("MGIC Indemnity" ), (2)
Financial Guaranty, (3) MBIA Insurance Corporation ("MBIA" ), (4) Bond
Investors Guaranty Insurance Company ("BIG" ), (5) National Union Fire
Insurance Company of Pittsburgh, PA. ("National Union" ), (6) Capital
Guaranty Insurance Company ("Capital Guaranty" ), (7) Capital Markets
Assurance Corporation ("CapMAC" ) and/or (8) Financial Security
Assurance Inc. ("Financial Security" or "FSA" ) (collectively,
the "Preinsured Bond Insurers" ) (see "Unitholder
Explanations--Insurance on the Bonds in the Insured Trusts" ). Insurance
obtained by an Insured Trust is effective only while the Bonds thus insured
are held in such Trust. The Trustee has the right to acquire permanent
insurance from a Portfolio Insurer with respect to each Bond insured by the
respective Portfolio Insurer under a Trust portfolio insurance policy.
Insurance relating to Bonds insured by the issuer, by a prior owner of such
Bonds or by the Sponsor is effective so long as such Bonds are outstanding.
Bonds insured under a policy of insurance obtained by the issuer, by a prior
owner of such Bonds or by the Sponsor from one of the Preinsured Bond Insurers
(the "Preinsured Bonds" ) are not additionally insured by an Insured
Trust. No representation is made as to any insurer's ability to meet its
commitments.

Neither the Public Offering Price nor any evaluation of Units for purposes of
repurchases or redemptions reflects any element of value for the insurance
obtained by an Insured Trust, if any, unless Bonds are in default in payment
of principal or interest or in significant risk of such default. See "
Unitholder Explanations--Public Offering--Offering Price" . On the other
hand, the value, if any, of Preinsured Bond insurance is reflected and
included in the market value of such Bonds.

In order for bonds to be eligible for insurance, they must have credit
characteristics which would qualify them for at least the Standard & Poor's
rating of "BBB-" or at least the Moody's Investors Service, Inc.
rating of "Baa" , which in brief represent the lowest ratings for
securities of investment grade (see "Other Matters--Description of
Securities Ratings" ). Insurance is not a substitute for the basic credit
of an issuer, but supplements the existing credit and provides additional
security therefor. If an issue is accepted for insurance, a non-cancellable
policy for the prompt payment of interest and principal on the bonds, when
due, is issued by the insurer. Any premium or premiums relating to Preinsured
Bond insurance is paid by the issuer, by a prior owner of such Bonds or by the
Sponsor and a monthly premium is paid by an Insured Trust for the portfolio
insurance, if any, obtained by such Trust. The Trustee has the right to obtain
permanent insurance from a Portfolio Insurer in connection with the sale of a
Bond insured under the insurance policy obtained from the respective Portfolio
Insurer by an Insured Trust upon the payment of a single predetermined
insurance premium from the proceeds of the sale of such Bond. Accordingly, any
Bond in an Insured Trust is eligible to be sold on an insured basis. All Bonds
insured by the Portfolio Insurers and the Preinsured Bond Insurers receive a
"AAA" rating by Standard & Poor's. See "Unitholder
Explanations--Insurance on the Bonds in the Insured Trusts" .

In selecting Securities for the Trusts the following facts, among others, were
considered by the Sponsor: (a) either the Standard & Poor's rating of the
Securities was in no case less than "BBB-" in the case of the Insured
Trusts, or the Moody's Investors Service, Inc. rating of the Securities was in
no case less than "Baa" in the case of the Insured Trusts, including
provisional or conditional ratings, respectively, or, if not rated, the
Securities had, in the opinion of the Sponsor, credit characteristics
sufficiently similar to the credit characteristics of interest-bearing
tax-exempt obligations that were so rated as to be acceptable for acquisition
by the Fund (see "Other Matters--Description of Securities Ratings" ),
(b) the prices of the Securities relative to other bonds of comparable quality
and maturity, (c) the diversification of Securities as to purpose of issue and
location of issuer and (d) with respect to the Insured Trusts, the
availability and cost of insurance for the prompt payment of principal and
interest, when due, on the Securities. Subsequent to the Date of Deposit, a
Security may cease to be rated or its rating may be reduced below the minimum
required as of the Date of Deposit. Neither event requires elimination of such
Security from the portfolio of a Trust but may be considered in the Sponsor's
determination as to whether or not to direct the Trustee to dispose of the
Security (see "Trust Administration--Fund Administration and
Expenses--Portfolio Administration" ).

To the best knowledge of the Sponsor, there is no litigation pending as of the
Date of Deposit in respect of any Securities which might reasonably be
expected to have a material adverse effect upon the Fund or any of the Trusts.
At any time after the Date of Deposit, litigation may be initiated on a
variety of grounds with respect to Securities in the Fund. Such litigation,
as, for example, suits challenging the issuance of pollution control revenue
bonds under environmental protection statutes, may affect the validity of such
Securities or the tax-free nature of the interest thereon. While the outcome
of litigation of such nature can never be entirely predicted, the Fund has
received or will receive opinions of bond counsel to the issuing authorities
of each Security on the date of issuance to the effect that such Securities
have been validly issued and that the interest thereon is exempt from Federal
income tax. In addition, other factors may arise from time to time which
potentially may impair the ability of issuers to meet obligations undertaken
with respect to the Securities.

Risk Factors. Certain of the Bonds in certain of the Trusts may be general
obligations of a governmental entity that are backed by the taxing power of
such entity. In view of this an investment in such a Trust should be made with
an understanding of the characteristics of such issuers and the risks which
such an investment may entail. All other Bonds in the Trusts are revenue bonds
payable from the income of a specific project or authority and are not
supported by the issuer's power to levy taxes. General obligation bonds are
secured by the issuer's pledge of its faith, credit and taxing power for the
payment of principal and interest. Revenue bonds, on the other hand, are
payable only from the revenues derived from a particular facility or class of
facilities or, in some cases, from the proceeds of a special excise tax or
other specific revenue source. There are, of course, variations in the
security of the different Bonds in the Fund, both within a particular
classification and between classifications, depending on numerous factors. See
"General" for each Trust.

Certain of the Bonds in certain of the Trusts may be obligations which derive
their payments from mortgage loans. Certain of such housing bonds may be FHA
insured or may be single family mortgage revenue bonds issued for the purpose
of acquiring from originating financial institutions notes secured by
mortgages on residences located within the issuer's boundaries and owned by
persons of low or moderate income. In view of this an investment in such a
Trust should be made with an understanding of the characteristics of such
issuers and the risks which such an investment may entail. Mortgage loans are
generally partially or completely prepaid prior to their final maturities as a
result of events such as sale of the mortgaged premises, default, condemnation
or casualty loss. Because these bonds are subject to extraordinary mandatory
redemption in whole or in part from such prepayments of mortgage loans, a
substantial portion of such bonds will probably be redeemed prior to their
scheduled maturities or even prior to their ordinary call dates. Extraordinary
mandatory redemption without premium could also result from the failure of the
originating financial institutions to make mortgage loans in sufficient
amounts within a specified time period. Additionally, unusually high rates of
default on the underlying mortgage loans may reduce revenues available for the
payment of principal of or interest on such mortgage revenue bonds. These
bonds were issued under Section 103A of the Internal Revenue Code, which
Section contains certain requirements relating to the use of the proceeds of
such bonds in order for the interest on such bonds to retain its tax-exempt
status. In each case the issuer of the bonds has covenanted to comply with
applicable requirements and bond counsel to such issuer has issued an opinion
that the interest on the bonds is exempt from Federal income tax under
existing laws and regulations. Certain issuers of housing bonds have
considered various ways to redeem bonds they have issued prior to the stated
first redemption dates for such bonds. In connection with the housing bonds
held by the Fund, the Sponsor at the Date of Deposit is not aware that any of
the respective issuers of such Bonds are actively considering the redemption
of such Bonds prior to their respective stated initial call dates. See "
General" for each Trust.

Certain of the Bonds in certain of the Trusts may be health care revenue
bonds. In view of this an investment in such a Trust should be made with an
understanding of the characteristics of such issuers and the risks which such
an investment may entail. Ratings of bonds issued for health care facilities
are often based on feasibility studies that contain projections of occupancy
levels, revenues and expenses. A facility's gross receipts and net income
available for debt service may be affected by future events and conditions
including, among other things, demand for services and the ability of the
facility to provide the services required, physicians' confidence in the
facility, management capabilities, competition with other health care
facilities, efforts by insurers and governmental agencies to limit rates,
legislation establishing state rate-setting agencies, expenses, the cost and
possible unavailability of malpractice insurance, the funding of Medicare,
Medicaid and other similar third party payor programs, government regulation
and the termination or restriction of governmental financial assistance,
including that associated with Medicare, Medicaid and other similar third
party payor programs. Pursuant to recent Federal legislation, Medicare
reimbursements are currently calculated on a prospective basis utilizing a
single nationwide schedule of rates. Prior to such legislation Medicare
reimbursements were based on the actual costs incurred by the health facility.
The current legislation may adversely affect reimbursements to hospitals and
other facilities for services provided under the Medicare program. Such
adverse changes also may adversely affect the ratings of Securities held in
the portfolios of the Fund; however, because of the insurance obtained by each
of the Insured Trusts, the "AAA" rating of the Units of each of the
Insured Trusts would not be affected. See "General" for each Trust.

Certain of the Bonds in certain of the Trusts may be obligations of public
utility issuers, including those selling wholesale and retail electric power
and gas. In view of this an investment in such a Trust should be made with an
understanding of the characteristics of such issuers and the risks which such
an investment may entail. General problems of such issuers would include the
difficulty in financing large construction programs in an inflationary period,
the limitations on operations and increased costs and delays attributable to
environmental considerations, the difficulty of the capital market in
absorbing utility debt, the difficulty in obtaining fuel at reasonable prices
and the effect of energy conservation. All of such issuers have been
experiencing certain of these problems in varying degrees. In addition,
Federal, state and municipal governmental authorities may from time to time
review existing, and impose additional, regulations governing the licensing,
construction and operation of nuclear power plants, which may adversely affect
the ability of the issuers of certain of the Bonds in the portfolio to make
payments of principal and/or interest on such Bonds. See "General" for
each Trust.

Certain of the Bonds in certain of the Trusts may be obligations of issuers
whose revenues are derived from the sale of water and/or sewerage services. In
view of this an investment in such a Trust should be made with an
understanding of the characteristics of such issuers and the risks which such
an investment may entail. Such Bonds are generally payable from user fees. The
problems of such issuers include the ability to obtain timely and adequate
rate increases, population decline resulting in decreased user fees, the
difficulty of financing large construction programs, the limitations on
operations and increased costs and delays attributable to environmental
considerations, the increasing difficulty of obtaining or discovering new
supplies of fresh water, the effect of conservation programs and the impact of
"no-growth" zoning ordinances. All of such issuers have been
experiencing certain of these problems in varying degrees. See 
"General" for each Trust.

Certain of the Bonds in certain of the Trusts may be industrial revenue bonds
("IRBs" ). In view of this an investment in such a Trust should be made
with an understanding of the characteristics of such issuers and the risks
which such an investment may entail. IRBs have generally been issued under
bond resolutions pursuant to which the revenues and receipts payable under the
arrangements with the operator of a particular project have been assigned and
pledged to purchasers. In some cases, a mortgage on the underlying project may
have been granted as security for the IRBs. Regardless of the structure,
payment of IRBs is solely dependent upon the creditworthiness of the corporate
operator of the project or corporate guarantor. Corporate operators or
guarantors may be affected by many factors which may have an adverse impact on
the credit quality of the particular company or industry. These include
cyclicality of revenues and earnings, regulatory and environmental
restrictions, litigation resulting from accidents or environmentally-caused
illnesses, extensive competition and financial deterioration resulting from a
corporate restructuring pursuant to a leveraged buy-out, takeover or
otherwise. Such a restructuring may result in the operator of a project
becoming highly leveraged which may impact on such operator's creditworthiness
which in turn would have an adverse impact on the rating and/or market value
of such Bonds. Further, the possibility of such a restructuring may have an
adverse impact on the market for and consequently the value of such Bonds,
even though no actual takeover or other action is ever contemplated or
effected. See "General" for each Trust.

Certain of the Bonds in certain of the Trusts may be obligations that are
secured by lease payments of a governmental entity (hereinafter called "
lease obligations" ). Lease obligations are often in the form of
certificates of participation. In view of this an investment in such a Trust
should be made with an understanding of the characteristics of such issuers
and the risks which such an investment may entail. Although the lease
obligations do not constitute general obligations of the municipality for
which the municipality's taxing power is pledged, a lease obligation is
ordinarily backed by the municipality's covenant to appropriate for and make
the payments due under the lease obligation. However, certain lease
obligations contain "non-appropriation" clauses which provide that the
municipality has no obligation to make lease payments in future years unless
money is appropriated for such purpose on a yearly basis. A governmental
entity that enters into such a lease agreement cannot obligate future
governments to appropriate for and make lease payments but covenants to take
such action as is necessary to include any lease payments due in its budgets
and to make the appropriations therefor. A governmental entity's failure to
appropriate for and to make payments under its lease obligation could result
in insufficient funds available for payment of the obligations secured
thereby. Although "non-appropriation" lease obligations are secured by
the leased property, disposition of the property in the event of foreclosure
might prove difficult. See "General" for each Trust.

Certain of the Bonds in certain of the Trusts may be obligations of issuers
which are, or which govern the operation of, schools, colleges and
universities and whose revenues are derived mainly from ad valorem taxes or
for higher education systems, from tuition, dormitory revenues, grants and
endowments. In view of this an investment in such a Trust should be made with
an understanding of the characteristics of such issuers and the risks which
such an investment may entail. General problems relating to school bonds
include litigation contesting the State constitutionality of financing public
education in part from ad valorem taxes, thereby creating a disparity in
educational funds available to schools in wealthy areas and schools in poor
areas. Litigation or legislation on this issue may affect the sources of funds
available for the payment of school bonds in the Trusts. General problems
relating to college and university obligations include the prospect of a
declining percentage of the population consisting of "college" age
individuals, possible inability to raise tuitions and fees sufficiently to
cover increased operating costs, the uncertainty of continued receipt of
Federal grants and state funding, and government legislation or regulations
which may adversely affect the revenues or costs of such issuers. All of such
issuers have been experiencing certain of these problems in varying degrees.
See "General" for each Trust.

Certain of the Bonds in certain of the Trusts may be obligations which are
payable from and secured by revenues derived from the ownership and operation
of facilities such as airports, bridges, turnpikes, port authorities,
convention centers and arenas. In view of this an investment in such a Trust
should be made with an understanding of the characteristics of such issuers
and the risks which such an investment may entail. The major portion of an
airport's gross operating income is generally derived from fees received from
signatory airlines pursuant to use agreements which consist of annual payments
for leases, occupancy of certain terminal space and service fees. Airport
operating income may therefore be affected by the ability of the airlines to
meet their obligations under the use agreements. The air transport industry is
experiencing significant variations in earnings and traffic, due to increased
competition, excess capacity, increased costs, deregulation, traffic
constraints and other factors, and several airlines are experiencing severe
financial difficulties. The Sponsor cannot predict what effect these industry
conditions may have on airport revenues which are dependent for payment on the
financial condition of the airlines and their usage of the particular airport
facility. Similarly, payment on Bonds related to other facilities is dependent
on revenues from the projects, such as user fees from ports, tolls on
turnpikes and bridges and rents from buildings. Therefore, payment may be
adversely affected by reduction in revenues due to such factors as increased
cost of maintenance, decreased use of a facility, lower cost of alternative
modes of transportation, scarcity of fuel and reduction or loss of rents. See
"General" for each Trust.

Certain of the Bonds in certain of the Trusts may be obligations which are
payable from and secured by revenues derived from the operation of resource
recovery facilities. In view of this an investment in such a Trust should be
made with an understanding of the characteristics of such issuers and the
risks which such an investment may entail. Resource recovery facilities are
designed to process solid waste, generate steam and convert steam to
electricity. Resource recovery bonds may be subject to extraordinary optional
redemption at par upon the occurrence of certain circumstances, including but
not limited to: destruction or condemnation of a project; contracts relating
to a project becoming void, unenforceable or impossible to perform; changes in
the economic availability of raw materials, operating supplies or facilities
necessary for the operation of a project or technological or other unavoidable
changes adversely affecting the operation of a project; administrative or
judicial actions which render contracts relating to the projects void,
unenforceable or impossible to perform; or impose unreasonable burdens or
excessive liabilities. The Sponsor cannot predict the causes or likelihood of
the redemption of resource recovery bonds in such a Trust prior to the stated
maturity of the Bonds. See "General" for each Trust.

Replacement Bonds. Because certain of the Securities in the Fund may from time
to time under certain circumstances be sold or redeemed or will mature in
accordance with their terms and because the proceeds from such events will be
distributed to Unitholders and will not be reinvested, no assurance can be
given that any Trust will retain for any length of time its present size and
composition. Neither the Sponsor nor the Trustee shall be liable in any way
for any default, failure or defect in any Security. In the event of a failure
to deliver any Security that has been purchased for the Fund under a contract,
including those Securities purchased on a "when, as and if issued" 
basis ("Failed Bonds" ), the Sponsor is authorized under the Trust
Agreement to direct the Trustee to acquire other bonds ("Replacement
Bonds" ) to make up the original corpus of the Fund.

The Replacement Bonds must be purchased within 20 days after delivery of the
notice of the failed contract and the purchase price (exclusive of accrued
interest) may not exceed the amount of funds reserved for the purchase of the
Failed Bonds. The Replacement Bonds (i) must be tax-exempt bonds issued by
states or territories of the United States or political subdivisions thereof
and, in the case of replacement of bonds in a State Trust, shall have the
benefit of an exemption from state taxation of interest to an extent equal to
or greater than that of the bonds they replace, (ii) must have a fixed
maturity date of at least 10 years in the case of a State Trust or, in the
case of an IM-IT Limited Maturity, IM-IT Intermediate or IM-IT Short
Intermediate Trust, must have a fixed maturity date within the range set forth
under "Unitholder Explanations--Settlement of Bonds in the Trusts--The
Fund" , (iii) must be purchased at a price that results in a yield to
maturity and in a current return, in each case as of the Date of Deposit, at
least equal to that of the Failed Bonds, (iv) shall not be "when, as and
if issued" bonds, (v) must be rated "BBB-" or better in the case
of the Insured Trusts by Standard & Poor's or "Baa" or better in the
case of the Insured Trusts by Moody's Investors Service, Inc. and (vi) with
respect to each Insured Trust, must be insured by one of the Preinsured Bond
Insurers or be eligible for (and when acquired be insured under) the insurance
obtained by such Insured Trust. Whenever a Replacement Bond has been acquired
for the Fund, the Trustee shall, within five days thereafter, notify all
Unitholders of the affected Trust of the acquisition of the Replacement Bond
and shall, on the next monthly distribution date which is more than 30 days
thereafter, make a pro rata distribution of the amount, if any, by which the
cost to the affected Trust of the Failed Bond exceeded the cost of the
Replacement Bond plus accrued interest. Once the original corpus of a Trust is
acquired, the Trustee will have no power to vary the investment of the Trust;
i.e., the Trust will have no managerial power to take advantage of market
variation to improve a Unitholder's investment.

If the right of limited substitution described in the preceding paragraph
shall not be utilized to acquire Replacement Bonds in the event of a failed
contract, the Sponsor will refund the sales charge attributable to such Failed
Bonds to all Unitholders of the affected Trust and distribute the principal
and accrued interest (at the coupon rate of such Failed Bonds to the date the
Failed Bonds are removed from the Fund) attributable to such Failed Bonds not
more than 30 days after such removal or such earlier time as the Trustee in
its sole discretion deems to be in the interest of the Unitholders. All such
interest paid to a Unitholder which accrued after the expected date of
settlement for purchase of his Units will be paid by the Sponsor and
accordingly will not be treated as tax-exempt income. In the event a
Replacement Bond should not be acquired by the Fund, the Estimated Net Annual
Interest Income per Unit for the affected Trust would be reduced and the
Estimated Current Return and Estimated Long-Term Return thereon might be
lowered. In addition, Unitholders should be aware that they may not be able at
the time of receipt of such principal to reinvest such proceeds in other
securities at a yield equal to or in excess of the yield which such proceeds
were earning to Unitholders in the affected Trust.

Bond Redemptions. Certain of the Bonds in certain of the Trusts may be subject
to redemption prior to their stated maturity date pursuant to sinking fund
provisions, call provisions or extraordinary optional or mandatory redemption
provisions or otherwise. A sinking fund is a reserve fund accumulated over a
period of time for retirement of debt. A callable debt obligation is one which
is subject to redemption or refunding prior to maturity at the option of the
issuer. A refunding is a method by which a debt obligation is redeemed, at or
before maturity, by the proceeds of a new debt obligation. In general, call
provisions are more likely to be exercised when the offering side valuation is
at a premium over par than when it is at a discount from par. The exercise of
redemption or call provisions will (except to the extent the proceeds of the
called Bonds are used to pay for Unit redemptions) result in the distribution
of principal and may result in a reduction in the amount of subsequent
interest distributions; it may also affect the current return on Units of the
Trust involved. Each Trust portfolio contains a listing of the sinking fund
and call provisions, if any, with respect to each of the debt obligations.
Extraordinary optional redemptions and mandatory redemptions result from the
happening of certain events. Generally, events that may permit the
extraordinary optional redemption of Bonds or may require the mandatory
redemption of Bonds include, among others: a final determination that the
interest on the Bonds is taxable; the substantial damage or destruction by
fire or other casualty of the project for which the proceeds of the Bonds were
used; an exercise by a local, state or Federal governmental unit of its power
of eminent domain to take all or substantially all of the project for which
the proceeds of the Bonds were used; changes in the economic availability of
raw materials, operating supplies or facilities or technological or other
changes which render the operation of the project for which the proceeds of
the Bonds were used uneconomic; changes in law or an administrative or
judicial decree which renders the performance of the agreement under which the
proceeds of the Bonds were made available to finance the project impossible or
which creates unreasonable burdens or which imposes excessive liabilities,
such as taxes, not imposed on the date the Bonds are issued on the issuer of
the Bonds or the user of the proceeds of the Bonds; an administrative or
judicial decree which requires the cessation of a substantial part of the
operations of the project financed with the proceeds of the Bonds; an
overestimate of the costs of the project to be financed with the proceeds of
the Bonds resulting in excess proceeds of the Bonds which may be applied to
redeem Bonds; or an underestimate of a source of funds securing the Bonds
resulting in excess funds which may be applied to redeem Bonds. The issuer of
certain Bonds in a Trust may have sold or reserved the right to sell, upon the
satisfaction of certain conditions, to third parties all or any portion of its
rights to call Bonds in accordance with the stated redemption provisions of
such Bonds. In such a case the issuer no longer has the right to call the
Bonds for redemption unless it reacquires the rights from such third party. A
third party pursuant to these rights may exercise the redemption provisions
with respect to a Bond at a time when the issuer of the Bond might not have
called a Bond for redemption had it not sold such rights. The Sponsor is
unable to predict all of the circumstances which may result in such redemption
of an issue of Bonds. See "Portfolio" for each Trust and footnote (3)
in the "Notes to Portfolios" . See also the discussion of single family
mortgage and multi-family revenue bonds above for more information on the call
provisions of such bonds.

Distributions. Distributions of interest received by the Fund, pro rated on an
annual basis, will be made on a monthly basis, unless the Unitholder elects to
receive them semi-annually. The first such distribution will be in the amount
indicated under "Per Unit Information" for the applicable Trust and
will be made on the fifteenth day of the month indicated under "Initial
Distribution" therein to Unitholders of record on the first day of such
month. The first distribution of funds from the Principal Account, if any,
will be made on the first semi-annual distribution date to Unitholders of
record on the first semi-annual record date, and thereafter such distributions
will be made on a semi-annual basis, except under certain special
circumstances (see "Unitholder Explanations--Public Offering
- -Distributions of Interest and Principal" ).

Change of Distribution Option. The plan of distribution selected by a
Unitholder will remain in effect until changed. Unitholders purchasing Units
in the secondary market will initially receive distributions in accordance
with the election of the prior owner. Unitholders may change the plan of
distribution in which they are participating. For convenience of Unitholders,
the Trustee will furnish a card for this purpose; cards may also be obtained
upon request from the Trustee. Unitholders desiring to change their plan of
distribution may so indicate on the card and return it together with their
certificate and such other documentation that the Trustee may then require, to
the Trustee. Certificates should only be sent by registered or certified mail
to minimize the possibility of their being lost or stolen. If the card and
certificate are properly presented to the Trustee, the change will become
effective as of the opening of business on the first day after the next
succeeding semi-annual record date and will be effective, unless further
changed, for all subsequent distributions.

Certificates. The Trustee is authorized to treat as the record owner of Units
that person who is registered as such owner on the books of the Trustee.
Ownership of Units of each Trust is evidenced by separate registered
certificates executed by the Trustee and the Sponsor. Certificates are
transferable by presentation and surrender to the Trustee properly endorsed or
accompanied by a written instrument or instruments of transfer. A Unitholder
must sign exactly as his name appears on the face of the certificate with the
signature guaranteed by a participant in the Securities Transfer Agents
Medallion Program ("STAMP" ) or such other signature guaranty program
in addition to, or in substitution for, STAMP, as may be accepted by the
Trustee. In certain instances the Trustee may require additional documents
such as, but not limited to, trust instruments, certificates of death,
appointments as executor or administrator or certificates of corporate
authority. Certificates will be issued in denominations of one Unit or any
multiple thereof. Certificates for Units will bear appropriate notations on
their face indicating which plan of distribution has been selected in respect
thereof. If a change in the plan of distribution is made, the existing
certificate must be surrendered to the Trustee and a new certificate will be
issued, at no charge to the Unitholder, to reflect the currently effective
plan of distribution.

Although no such charge is now made or contemplated, the Trustee may require a
Unitholder to pay a reasonable fee for each certificate re-issued (other than
as a result of a change in plan of distribution) or transferred and to pay any
governmental charge that may be imposed in connection with each such transfer
or interchange. Destroyed, stolen, mutilated or lost certificates will be
replaced upon delivery to the Trustee of satisfactory indemnity, evidence of
ownership and payment of expenses incurred. Mutilated certificates must be
surrendered to the Trustee for replacement.

ESTIMATED CURRENT RETURNS AND ESTIMATED LONG-TERM RETURNS
   
As of the close of business on the day before the Date of Deposit (except for
the Pennsylvania IM-IT Trust as of 8:00 A.M. Central Time on the Date of
Deposit) the Estimated Current Returns and the Estimated Long-Term Returns,
under the monthly and semi-annual distribution plans, were as set forth in the
"Per Unit Information" for each Trust. Estimated Current Return is
calculated by dividing the estimated net annual interest income per Unit by
the Public Offering Price. The estimated net annual interest income per Unit
will vary with changes in fees and expenses of the Trustee and the Evaluator
and with the principal prepayment, redemption, maturity, exchange or sale of
Securities while the Public Offering Price will vary with changes in the
offering price of the underlying Securities; therefore, there is no assurance
that the present Estimated Current Return will be realized in the future.
Estimated Long-Term Return is calculated using a formula which (1) takes into
consideration, and determines and factors in the relative weightings of, the
market values, yields (which takes into account the amortization of premiums
and the accretion of discounts) and estimated retirements of all of the
Securities in a Trust and (2) takes into account the expenses and sales charge
associated with each Trust Unit. Since the market values and estimated
retirements of the Securities and the expenses of a Trust will change, there
is no assurance that the present Estimated Long-Term Return will be realized
in the future. The Estimated Current Return and Estimated Long-Term Return are
expected to differ because the calculation of Estimated Long-Term Return
reflects the estimated date and amount of principal returned while the
Estimated Current Return calculation includes only net annual interest income
and Public Offering Price.
    
In order to acquire certain of the Securities contracted for by the Sponsor
for deposit in the Fund, it may be necessary for the Sponsor or Trustee to pay
on the settlement dates for delivery of such Securities amounts covering
accrued interest on such Securities which exceed the amounts which will be
made available through cash furnished by the Sponsor on the Date of Deposit,
which amount of cash may exceed the interest which would accrue to the First
Settlement Date. The Trustee has agreed to pay for any amounts necessary to
cover any such excess and will be reimbursed therefor, when funds become
available from interest payments on the particular Securities with respect to
which such payments may have been made. Also, since interest on any "when,
as and if issued" Securities does not begin accruing as tax-exempt
interest income to the benefit of Unitholders until their respective dates of
delivery, the Trustee may, in order to maintain (or in some cases approach)
for the Unitholders the same estimated net annual interest incomes during the
first year of the Trusts' operations as is indicated under "Per Unit
Information" for the applicable Trust, reduce its fee (and to the extent
necessary pay Trust expenses) in an amount equal to that indicated under 
"Per Unit Information" for the applicable Trust.

INTEREST EARNING SCHEDULE

Calculation of Estimated Net Annual Interest Income. The estimated net annual
interest income is based on 360 days. To account for the estimated net annual
interest income per Unit in a Trust, it is necessary to use the following
information.
   
The beginning interest date for each Trust is October 19, 1995. The first
monthly record date for each Trust (December 1, 1995) is 42 days from such
date. The daily rates of estimated net annual interest income per Unit accrued
on a monthly basis are $.14220, $.14450 and $.14565 for the Colorado IM-IT,
New Jersey IM-IT and Pennsylvania IM-IT Trusts, respectively. This amounts to
$5.97, $6.07 and $6.12 for the Colorado IM-IT, New Jersey IM-IT and
Pennsylvania IM-IT Trusts, respectively.

Utilizing the preceding information assuming the monthly payment option, the
following procedure illustrates the calculation of first year estimated net
annual interest income per Unit for the Colorado IM-IT Trust:

The Colorado IM-IT Trust accrues

$5.97 to the first record date plus

$42.70 which is 10 normal distributions at $4.27, and finally adding 

$2.53 which has accrued from October 1, 1996 until October 19, 1996 which
completes the 360 day cycle (18 days times the daily factor)

Total $51.20 interest earned /$1,000.00 (Date of Deposit Public Offering
Price) = 5.12% Estimated Current Return as of the Date of Deposit.
    

ACCRUED INTEREST

Accrued Interest. Accrued interest is an accumulation of unpaid interest on
securities which generally is paid semi-annually, although the Trust accrues
such interest daily. Because of this, the Trust always has an amount of
interest earned but not yet collected by the Trustee. For this reason, with
respect to sales settling subsequent to the First Settlement Date, the Public
Offering Price of Units will have added to it the proportionate share of
accrued interest to the date of settlement. Unitholders will receive on the
next distribution date of the Trust the amount, if any, of accrued interest
paid on their Units.

In an effort to reduce the amount of accrued interest which would otherwise
have to be paid by Unitholders, the Trustee will advance the amount of accrued
interest to the Sponsor as the Unitholder of record as of the First Settlement
Date. Consequently, the amount of accrued interest to be added to the Public
Offering Price of Units will include only accrued interest from the First
Settlement Date to the date of settlement, less any distributions from the
Interest Account subsequent to the First Settlement Date. See "Public
Offering--Distributions of Interest and Principal." 

Because of the varying interest payment dates of the Securities, accrued
interest at any point in time will be greater than the amount of interest
actually received by a Trust and distributed to Unitholders. If a Unitholder
sells or redeems all or a portion of his Units, he will be entitled to receive
his proportionate share of the accrued interest from the purchaser of his
Units. Since the Trustee has the use of the funds held in the Interest Account
for distributions to Unitholders and since such Account is
non-interest-bearing to Unitholders, the Trustee benefits thereby.

PUBLIC OFFERING

General. Units are offered at the Public Offering Price. During the initial
offering period the Public Offering Price is based on the offering prices of
the Securities in each Trust and includes a sales charge of 4.9% of the Public
Offering Price (5.152% of the aggregate offering price of the Securities) for
a State Trust, 4.3% of the Public Offering Price (4.493% of the aggregate
offering price of the Securities) for an IM-IT Limited Maturity Trust, 3.9% of
the Public Offering Price (4.058% of the aggregate offering price of the
Securities) for an IM-IT Intermediate Trust and 3.0% of the Public Offering
Price (3.093% of the aggregate offering price of the Securities) for an IM-IT
Short Intermediate Trust. After the initial public offering period, the
secondary market Public Offering Price is based on the bid prices of the
Securities in each Trust and includes a sales charge determined in accordance
with the table set forth below, which is based upon the dollar weighted
average maturity of each Trust plus in each case accrued interest, if any. For
purposes of computation, Bonds will be deemed to mature on their expressed
maturity dates unless: (a) the Bonds have been called for redemption or funds
or securities have been placed in escrow to redeem them on an earlier call
date, in which case such call date will be deemed to be the date upon which
they mature; or (b) such Bonds are subject to a "mandatory tender" , in
which case such mandatory tender will be deemed to be the date upon which they
mature. 

The effect of this method of sales charge computation will be that different
sales charge rates will be applied to each Trust based upon the dollar
weighted average maturity of such Trust's Portfolio, in accordance with the
following schedule: 



<TABLE>
<CAPTION>                                                                                      
Years To Maturity    Sales Charge         Years To Maturity        Sales Charge                     
<S>                  <C>                 <C>                       <C>                              
1                      1.523%             9                        4.712%
2                      2.041             10                        4.932  
3                      2.564             11                        4.932  
4                      3.199             12                        4.932  
5                      3.842             13                        5.374  
6                      4.058             14                        5.374  
7                      4.275             15                        5.374  
8                      4.493             16 to 30                  6.045  
</TABLE>


The sales charges in the above table are expressed as a percentage of the
aggregate bid prices of the Securities in a Trust. Expressed as a percent of
the Public Offering Price, the sales charge on a Trust consisting entirely of
a portfolio of Bonds with 15 years to maturity would be 5.10%. The sales
charge applicable to quantity purchases during the initial offering period is,
however, reduced on a graduated basis to any person acquiring 100 or more
Units as follows: 

<TABLE>
<CAPTION>
                       Dollar Amount of                                      
                       Sales Charge                                          
                       Reduction Per Unit
                                    
Aggregate Number of    State and National                                    
Units Purchased        Quality Trusts        Other Trusts
<S>                     <C>                  <C>                             
100-249 Units......... $             4.00   $           4.00  
250-499 Units......... $             6.00   $           6.00  
500-999 Units......... $            14.00   $           9.00  
1,000 or more Units... $            19.00   $          11.00  
</TABLE>


Any such reduced sales charge shall be the responsibility of the selling
Underwriter, broker, dealer or agent. The Sponsor will, however, increase the
concession or agency commission for such quantity purchases. See "Public
Offering--Unit Distribution" . This reduced sales charge structure will
apply on all purchases by the same person from any one Underwriter or dealer
of units of Van Kampen American Capital-sponsored unit investment trusts which
are being offered in the initial offering period (a) on any one day (the 
"Initial Purchase Date" ) or (b) on any day subsequent to the Initial
Purchase Date, if (1) the units purchased are of a unit investment trust
purchased on the Initial Purchase Date, and (2) the person purchasing the
units purchased a sufficient amount of units on the Initial Purchase Date to
qualify for a reduced sales charge on such date. In the event units of more
than one trust are purchased on the Initial Purchase Date, the aggregate
dollar amount of such purchases will be used to determine whether purchasers
are eligible for a reduced sales charge. Such aggregate dollar amount will be
divided by the public offering price per unit (on the day preceding the date
of purchase) of each respective trust purchased to determine the total number
of units which such amount could have purchased of each individual trust.
Purchasers must then consult the applicable trust's prospectus to determine
whether the total number of units which could have been purchased of a
specific trust would have qualified for a reduced sales charge and, if so
qualified, the amount of such reduction. Assuming a purchaser qualifies for a
sales charge reduction or reductions, to determine the applicable sales charge
reduction or reductions it is necessary to accumulate all purchases made on
the Initial Purchase Date and all purchases made in accordance with (b) above.
Units purchased in the name of the spouse of a purchaser or in the name of a
child of such purchaser under 21 years of age will be deemed for the purposes
of calculating the applicable sales charge to be additional purchases by the
purchaser. The reduced sales charges will also be applicable to a trustee or
other fiduciary purchasing securities for one or more trust estate or
fiduciary accounts. Employees of Van Kampen American Capital Distributors Inc.
and its subsidiaries may purchase Units of the Trust at the current Public
Offering Price less the underwriting commission or less the dealer's
concession in the absence of an underwriting commission. Registered
representatives of selling Underwriters may purchase Units of the Fund at the
current Public Offering Price less the underwriting commission during the
initial offering period, and less the dealer's concession for secondary market
transactions. Registered representatives of selling brokers, dealers, or
agents may purchase Units of the Fund at the current Public Offering Price
less the dealer's concession during the initial offering period and for
secondary market transactions.

Units may be purchased in the primary or secondary market at the Public
Offering Price (for purchases which do not qualify for a sales charge
reduction for quantity purchases) less the concession the Sponsor typically
allows to brokers and dealers for purchases (see "Trust
Administration--General--Unit Distribution" ) by (1) investors who purchase
Units through registered investment advisers, certified financial planners and
registered broker-dealers who in each case either charge periodic fees for
financial planning, investment advisory or asset management services, or
provide such services in connection with the establishment of an investment
account for which a comprehensive "wrap fee" charge is imposed, (2)
bank trust departments investing funds over which they exercise exclusive
discretionary investment authority and that are held in a fiduciary, agency,
custodial or similar capacity, (3) any person who for at least 90 days, has
been an officer, director or bona fide employee of any firm offering Units for
sale to investors or their immediate family members (as described above) and
(4) officers and directors of bank holding companies that make Units available
directly or through subsidiaries or bank affiliates. Notwithstanding anything
to the contrary in this Prospectus, such investors, bank trust departments,
firm employees and bank holding company officers and directors who purchase
Units through this program will not receive sales charge reductions for
quantity purchases.

Offering Price. Public Offering Price of the Units will vary from the amounts
stated under "Summary of Essential Financial Information" in
accordance with fluctuations in the prices of the underlying Securities in
each Trust.

   
As indicated above, the price of the Units as of the date the Securities were
deposited in each Trust was determined by adding to the aggregate offering
price of the Securities of a Trust an amount equal to the applicable sales
charge expressed as a percentage of the aggregate offering price of the
Securities and dividing the sum so obtained by the number of Units
outstanding. This computation produced a gross underwriting commission equal
to such sales charge expressed as a percentage of the Public Offering Price.
Such price determination as of the close of business on the day before the
Date of Deposit (except for the Pennsylvania IM-IT Trust as of 8:00 A.M.
Central Time on the Date of Deposit) was made on the basis of an evaluation of
the Securities in each Trust prepared by Interactive Data Services, Inc., a
firm regularly engaged in the business of evaluating, quoting or appraising
comparable securities. After the close of business on the day before the Date
of Deposit (except for the Pennsylvania IM-IT Trust as of 8:00 A.M. Central
Time on the Date of Deposit) and during the period of initial offering, the
Evaluator will appraise or cause to be appraised daily the value of the
underlying Securities of each Trust as of 4:00 P.M. Eastern time on days the
New York Stock Exchange is open for business and will adjust the Public
Offering Price of the Units commensurate with such appraisal. Such Public
Offering Price will be effective for all orders received at or prior to 4:00
P.M. Eastern time on each such day. Orders received by the Trustee, Sponsor or
any Underwriter for purchases, sales or redemptions after that time, or on a
day when the New York Stock Exchange is closed, will be held until the next
determination of price. For secondary market sales the Public Offering Price
per Unit will be equal to the aggregate bid price of the Securities in the
Trust plus an amount equal to the applicable secondary market sales charge
expressed as a percentage of the aggregate bid price of the Securities and
dividing the sum so attained by the number of Units then outstanding. This
computation produces a gross commission equal to such sales charge expressed
as a percentage of the Public Offering Price. For secondary market purposes
such appraisal and adjustment with respect to a Trust will be made by the
Evaluator as of 4:00 P.M. Eastern time on days in which the New York Stock
Exchange is open for each day on which any Unit of such Trust is tendered for
redemption, and it shall determine the aggregate value of any Trust as of 4:00
P.M. Eastern time on such other days as may be necessary.
    

The aggregate price of the Securities in each Trust has been and will be
determined on the basis of bid prices or offering prices, as is appropriate,
(a) on the basis of current market prices for the Securities obtained from
dealers or brokers who customarily deal in bonds comparable to those held by
the Fund; (b) if such prices are not available for any particular Securities,
on the basis of current market prices for comparable bonds; (c) by causing the
value of the Securities to be determined by others engaged in the practice of
evaluation, quoting or appraising comparable bonds; or (d) by any combination
of the above. Market prices of the Securities will generally fluctuate with
changes in market interest rates. Unless Bonds are in default in payment of
principal or interest or in significant risk of such default, the Evaluator
will not attribute any value to the insurance obtained by an Insured Trust, if
any.

The Evaluator will consider in its evaluation of Bonds which are in default in
payment of principal or interest or, in the Sponsor's opinion, in significant
risk of such default (the "Defaulted Bonds" ) the value of the
insurance guaranteeing interest and principal payments. The value of the
insurance will be equal to the difference between (i) the market value of
Defaulted Bonds assuming the exercise of the right to obtain Permanent
Insurance (less the insurance premiums and related expenses attributable to
the purchase of Permanent Insurance) and (ii) the market value of such
Defaulted Bonds not covered by Permanent Insurance. In addition, the Evaluator
will consider the ability of the affected Portfolio Insurer to meet its
commitments under any Trust insurance policy, including the commitments to
issue Permanent Insurance. It is the position of the Sponsor that this is a
fair method of valuing the Bonds and the insurance obtained by an Insured
Trust and reflects a proper valuation method in accordance with the provisions
of the Investment Company Act of 1940.

No value has been ascribed to insurance obtained by an Insured Trust, if any,
as of the date of this Prospectus.

The initial or primary Public Offering Price of the Units is equal to the
offering price per Unit of the underlying Securities in each Trust plus the
applicable sales charge plus interest accrued but unpaid from the First
Settlement Date to the date of settlement. The secondary market Public
Offering Price is equal to the bid price per Unit of the Securities in each
Trust plus the applicable sales charge plus accrued interest. The offering
price of Securities in each Trust may be expected to average approximately
0.5%-1% more than the bid price of such Securities. On the Date of Deposit,
the offering side evaluations of the Securities in the Trusts were higher than
the bid side evaluations of such Securities by the respective amounts
indicated under footnote (5) in "Notes to Portfolios" .

Although payment is normally made three business days following the order for
purchase, payment may be made prior thereto. A person will become the owner of
Units on the date of settlement provided payment has been received. Cash, if
any, made available to the Sponsor prior to the date of settlement for the
purchase of Units may be used in the Sponsor's business and may be deemed to
be a benefit to the Sponsor, subject to the limitations of the Securities
Exchange Act of 1934. Delivery of certificates representing Units so ordered
will be made three business days following such order or shortly thereafter.
See "Redemption of Units" below for information regarding the ability
to redeem Units ordered for purchase.

Market for Units. During the initial public offering period, the Sponsor
and/or certain of the Underwriters intend to offer to purchase Units at a
price equivalent to the Public Offering Price which is based upon the
aggregate offering price per Unit of the underlying Securities in each Trust
plus accrued interest to the date of settlement less the related sales
commission. Afterward, although they are not obligated to do so, the Sponsor
intends to, and certain of the other Underwriters may, maintain a market for
the Units offered hereby and to offer continuously to purchase such Units at
prices, subject to change at any time, based upon the aggregate bid prices of
the Securities in the portfolio of each Trust plus interest accrued to the
date of settlement and plus any principal cash on hand, less any amounts
representing taxes or other governmental charges payable out of the Trust and
less any accrued Trust expenses. If the supply of Units exceeds demand or if
some other business reason warrants it, the Sponsor and/or the Underwriters
may either discontinue all purchases of Units or discontinue purchases of
Units at such prices. In the event that a market is not maintained for the
Units and the Unitholder cannot find another purchaser, a Unitholder of any
Trust desiring to dispose of his Units may be able to dispose of such Units
only by tendering them to the Trustee for redemption at the Redemption Price,
which is based upon the aggregate bid price of the Securities in the portfolio
of such Trust plus any accrued interest. The aggregate bid prices of the
underlying Securities in a Trust are expected to be less than the related
aggregate offering prices. See "Redemption of Units" below. A
Unitholder who wishes to dispose of his Units should inquire of his broker as
to current market prices in order to determine whether there is in existence
any price in excess of the Redemption Price and, if so, the amount thereof.

Distributions of Interest and Principal. Interest received by the Fund,
including that part of the proceeds of any disposition of Securities which
represents accrued interest, is credited by the Trustee to the Interest
Account for the appropriate Trust. Other receipts are credited to the
Principal Account for the appropriate Trust. Interest received by the Fund
after deduction of amounts sufficient to reimburse the Trustee, without
interest, for any amounts advanced and paid to the Sponsor as the Unitholder
of record as of the First Settlement Date (see "Public Offering--Offering
Price" above) will be distributed on or shortly after the fifteenth day of
each month on a pro rata basis to Unitholders of record of a Trust as of the
preceding record date who are entitled to distributions at that time under the
plan of distributions chosen. All distributions will be net of applicable
expenses. The pro rata share of cash in the Principal Account of a Trust will
be computed as of the date set forth under "Per Unit Information" for
the applicable Trust, and thereafter as of the semi-annual record date, and
distributions to the Unitholders as of such record date will be made on or
shortly after the fifteenth day of such month. Proceeds received from the
disposition of any of the Securities after such record date and prior to the
following distribution date will be held in the Principal Account and not
distributed until the next distribution date. The Trustee is not required to
pay interest on funds held in any Principal or Interest Account (but may
itself earn interest thereon and therefore benefits from the use of such
funds) nor to make a distribution from the Principal Account unless the amount
available for distribution therein shall equal at least $1.00 per Unit.
However, should the amount available for distribution in the Principal Account
equal or exceed $10.00 per Unit, the Trustee will make a special distribution
from the Principal Account on the next succeeding monthly distribution date to
holders of record on the related monthly record date.

The distribution to the Unitholders of a Trust as of each record date after
the First Settlement Date will be made on the following distribution date or
shortly thereafter and shall consist of an amount substantially equal to such
portion of the Unitholder's pro rata share of the estimated net annual
interest income in the Interest Account of such Trust after deducting
estimated expenses attributable as is consistent with the distribution plan
chosen. Because interest payments are not received by the Fund at a constant
rate throughout the year, such interest distribution may be more or less than
the amount credited to such Interest Account as of the record date. For the
purpose of minimizing fluctuations in the distributions from an Interest
Account, the Trustee is authorized to advance such amounts as may be necessary
to provide interest distributions of approximately equal amounts. The Trustee
shall be reimbursed for any such advances from funds in the applicable
Interest Account on the ensuing record date. Persons who purchase Units
between a record date and a distribution date will receive their first
distribution on the second distribution date after the purchase, under the
applicable plan of distribution.

As of the first day of each month, the Trustee will deduct from the Interest
Account and, to the extent funds are not sufficient therein, from the
Principal Account, amounts necessary to pay the expenses of the Fund (as
determined on the basis set forth under "Trust Administration--Fund
Administration and Expenses" ). The Trustee also may withdraw from said
Accounts such amounts, if any, as it deems necessary to establish a reserve
for any governmental charges payable out of the Fund. Amounts so withdrawn
shall not be considered a part of the Fund's assets until such time as the
Trustee shall return all or any part of such amounts to the appropriate
Accounts. In addition, the Trustee may withdraw from the Interest and
Principal Accounts such amounts as may be necessary to cover purchases of
Replacement Bonds and redemptions of Units by the Trustee.

Reinvestment Option. Unitholders of all unit investment trusts sponsored by
Van Kampen American Capital Distributors, Inc. (except Unitholders of a New
York IM-IT Trust or a New York IM-IT Intermediate Laddered Maturity Trust),
may elect to have each distribution of interest income, capital gains and/or
principal on their Units automatically reinvested in shares of any of the open
ended mutual funds (except for B shares) listed under "Trust
Administration--Sponsor" which are registered in the Unitholder's state of
residence. New York IM-IT Trust and New York IM-IT Intermediate Laddered
Maturity Trust Unitholders, other than those residing in the Commonwealth of
Massachusetts, may elect to have each distribution of interest income, capital
gains and/or principal on their Units automatically reinvested in shares of
First Investors New York Insured Tax Free Fund, Inc., a fund which invests
primarily in securities exempt from federal and New York state and city income
tax. Such mutual funds are hereinafter collectively referred to as the 
"Reinvestment Funds" .

Each Reinvestment Fund has investment objectives which differ in certain
respects from those of the Trusts. The prospectus relating to each
Reinvestment Fund describes the investment policies of such fund and sets
forth the procedures to follow to commence reinvestment. A Unitholder may
obtain a prospectus for the respective Reinvestment Funds from Van Kampen
American Capital Distributors, Inc. at One Parkview Plaza, Oakbrook Terrace,
Illinois 60181. Texas residents who desire to reinvest may request that a
broker-dealer registered in Texas send the prospectus relating to the
respective fund.
   
After becoming a participant in a reinvestment plan, each distribution of
interest income, capital gains and/or principal on the participant's Units
will, on the applicable distribution date, automatically be applied, as
directed by such person, as of such distribution date by the Trustee to
purchase shares (or fractions thereof) of the applicable Reinvestment Fund at
a net asset value as computed as of the close of trading on the New York Stock
Exchange on such date, plus a sales charge of $1.00 per $100 of reinvestment
except if the participant selects the First Investors New York Insured Tax
Free Fund, Inc., in which case the sales charge will be $1.50 per $100 of
reinvestment, or except if the participant selects the Van Kampen American
Capital Reserve Fund, the Van Kampen American Capital Tax Free Money Fund, the
Van Kampen American Capital Florida Insured Tax Free Income Fund, the Van
Kampen American Capital New Jersey Tax Free Income Fund, or the Van Kampen
American Capital New York Tax Free Income Fund, in which case no sales charge
applies. A minimum of one-half of such sales charge would be paid to Van
Kampen American Capital Distributors, Inc. for all Reinvestment Funds except
First Investors New York Insured Tax Free Fund, Inc., in which case such sales
charge would be paid to First Investors Management Company, Inc.
    

Confirmations of all reinvestments by a Unitholder into a Reinvestment Fund
will be mailed to the Unitholder by such Reinvestment Fund.

A participant may at any time prior to five days preceding the next succeeding
distribution date, by so notifying the Trustee in writing, elect to terminate
his or her reinvestment plan and receive future distributions of his or her
Units in cash. There will be no charge or other penalty for such termination.
Each Reinvestment Fund, its sponsor and investment adviser shall have the
right to terminate at any time the reinvestment plan relating to such fund.

Redemption of Units. A Unitholder may redeem all or a portion of his Units by
tender to the Trustee, at its Unit Investment Trust Division, 101 Barclay
Street, 20th Floor, New York, New York 10286, of the certificates representing
the Units to be redeemed, duly endorsed or accompanied by proper instruments
of transfer with signature guaranteed (or by providing satisfactory indemnity,
as in connection with lost, stolen or destroyed certificates) and by payment
of applicable governmental charges, if any. Thus, redemption of Units cannot
be effected until certificates representing such Units have been delivered to
the person seeking redemption or satisfactory indemnity provided. No
redemption fee will be charged. On the third business day following such
tender the Unitholder will be entitled to receive in cash an amount for each
Unit equal to the Redemption Price per Unit next computed after receipt by the
Trustee of such tender of Units. The "date of tender" is deemed to be
the date on which Units are received by the Trustee, except that as regards
Units received after 4:00 P.M. Eastern time on days of trading on the New York
Stock Exchange, the date of tender is the next day on which such Exchange is
open for trading and such Units will be deemed to have been tendered to the
Trustee on such day for redemption at the Redemption Price computed on that
day.

Under regulations issued by the Internal Revenue Service, the Trustee will be
required to withhold a specified percentage of the principal amount of a Unit
redemption if the Trustee has not been furnished the redeeming Unitholder's
tax identification number in the manner required by such regulations. Any
amount so withheld is transmitted to the Internal Revenue Service and may be
recovered by the Unitholder only when filing a return. Under normal
circumstances the Trustee obtains the Unitholder's tax identification number
from the selling broker. However, at any time a Unitholder elects to tender
Units for redemption, such Unitholder should provide a tax identification
number to the Trustee in order to avoid this possible "back-up
withholding" in the event the Trustee has not been previously provided
such number.

Accrued interest paid on redemption shall be withdrawn from the Interest
Account of such Trust or, if the balance therein is insufficient, from the
Principal Account of such Trust. All other amounts will be withdrawn from the
Principal Account of such Trust. The Trustee is empowered to sell underlying
Securities of a Trust in order to make funds available for redemption. Units
so redeemed shall be cancelled.

The Redemption Price per Unit (as well as the secondary market Public Offering
Price) will be determined on the basis of the bid price of the Securities in
each Trust, while the initial and primary Public Offering Price of Units will
be determined on the basis of the offering price of the Securities in each
Trust, as of 4:00 P.M. Eastern time on days of trading on the New York Stock
Exchange on the date any such determination is made. On the Date of Deposit
the Public Offering Price per Unit (which is based on the offering prices of
the Bonds in each Trust and includes the sales charge) exceeded the value at
which Units could have been redeemed (based upon the current bid prices of the
Securities in such Trust) by the amount shown under "Summary of Essential
Financial Information" . While the Trustee has the power to determine the
Redemption Price per Unit when Units are tendered for redemption, such
authority has been delegated to the Evaluator which determines the price per
Unit on a daily basis. The Redemption Price per Unit is the pro rata share of
each Unit in each Trust on the basis of (i) the cash on hand in such Trust or
moneys in the process of being collected, (ii) the value of the Securities in
such Trust based on the bid prices of the Securities therein, except for cases
in which the value of insurance has been included, (iii) interest accrued
thereon, less (a) amounts representing taxes or other governmental charges
payable out of such Trust and (b) the accrued expenses of such Trust. The
Evaluator may determine the value of the Securities in each Trust by employing
any of the methods set forth in "Public Offering--Offering Price" . In
determining the Redemption Price per Unit no value will be assigned to the
portfolio insurance maintained on the Bonds in an Insured Trust unless such
Bonds are in default in payment of principal or interest or in significant
risk of such default. For a description of the situations in which the
Evaluator may value the insurance obtained by the Insured Trusts, see 
"Public Offering--Offering Price" above.

The price at which Units may be redeemed could be less than the price paid by
the Unitholder and may be less than the par value of the Securities
represented by the Units so redeemed. As stated above, the Trustee may sell
Securities to cover redemptions. When Securities are sold, the size and
diversity of the affected Trust will be reduced. Such sales may be required at
a time when Securities would not otherwise be sold and might result in lower
prices than might otherwise be realized.

The right of redemption may be suspended and payment postponed for any period
during which the New York Stock Exchange is closed, other than for customary
weekend and holiday closings, or during which the Securities and Exchange
Commission determines that trading on that Exchange is restricted or an
emergency exists, as a result of which disposal or evaluation of the
Securities in the Trusts is not reasonably practicable, or for such other
periods as the Securities and Exchange Commission may by order permit. Under
certain extreme circumstances the Sponsor may apply to the Securities and
Exchange Commission for an order permitting a full or partial suspension of
the right of Unitholders to redeem their Units.

Reports Provided. The Trustee shall furnish Unitholders of a Trust in
connection with each distribution a statement of the amount of interest and
the amount of other receipts (received since the preceding distribution), if
any, being distributed expressed in each case as a dollar amount representing
the pro rata share of each Unit of a Trust outstanding. For as long as the
Trustee deems it to be in the best interests of the Unitholders, the accounts
of each Trust shall be audited, not less frequently than annually, by
independent certified public accountants and the report of such accountants
shall be furnished by the Trustee to Unitholders of such Trusts upon request.
Within a reasonable period of time after the end of each calendar year, the
Trustee shall furnish to each person who at any time during the calendar year
was a registered Unitholder of a Trust a statement (i) as to the Interest
Account: interest received (including amounts representing interest received
upon any disposition of Securities) and the percentage of such interest by
states in which the issuers of the Securities are located, deductions for
applicable taxes and for fees and expenses of such Trust, for purchases of
Replacement Bonds and for redemptions of Units, if any, and the balance
remaining after such distributions and deductions, expressed in each case both
as a total dollar amount and as a dollar amount representing the pro rata
share of each Unit outstanding on the last business day of such calendar year;
(ii) as to the Principal Account: the dates of disposition of any Securities
and the net proceeds received therefrom (excluding any portion representing
accrued interest), the amount paid for purchases of Replacement Bonds and for
redemptions of Units, if any, deductions for payment of applicable taxes and
fees and expenses of the Trustee, the amount of "when issued" interest
treated as a return of capital, if any, and the balance remaining after such
distributions and deductions expressed both as a total dollar amount and as a
dollar amount representing the pro rata share of each Unit outstanding on the
last business day of such calendar year; (iii) a list of the Securities held
and the number of Units outstanding on the last business day of such calendar
year; (iv) the Redemption Price per Unit based upon the last computation
thereof made during such calendar year; and (v) amounts actually distributed
during such calendar year from the Interest and Principal Accounts, separately
stated, expressed both as total dollar amounts and as dollar amounts
representing the pro rata share of each Unit outstanding.

In order to comply with Federal and state tax reporting requirements,
Unitholders will be furnished, upon request to the Trustee, evaluations of the
Securities in a Trust furnished to it by the Evaluator.

Each distribution statement of a Trust will reflect pertinent information in
respect of the other plan of distribution so that Unitholders may be informed
regarding the results of such other plan of distribution.

INSURANCE ON THE BONDS IN THE INSURED TRUSTS

Insurance has been obtained by each Insured Trust or by the issuer of such
Bonds, or by a prior owner of such Bonds, or by the Sponsor prior to the
deposit of such Bonds in a Trust guaranteeing prompt payment of interest and
principal, when due, in respect of the Bonds in such Trust. See 
"Unitholder Explanations--Settlement of Bonds in the Trusts--Objectives and
Securities Selection" . An insurance policy obtained by an Insured Trust,
if any, is non-cancellable and will continue in force so long as such Trust is
in existence, the respective Portfolio Insurer referred to below is still in
business and the Bonds described in such policy continue to be held by such
Trust (see "Portfolio" for the respective Insured Trust). Any
portfolio insurance premium for an Insured Trust, which is an obligation of
such Trust, is paid by each Trust on a monthly basis. Non-payment of premiums
on a policy obtained by an Insured Trust will not result in the cancellation
of insurance but will force the insurer to take action against the Trustee to
recover premium payments due it. The Trustee in turn will be entitled to
recover such payments from such Trust. Premium rates for each issue of Bonds
protected by a policy obtained by an Insured Trust, if any, are fixed for the
life of the Trust. The premium for any Preinsured Bond insurance has been paid
by such issuer, by a prior owner of such Bonds or the Sponsor and any such
policy or policies are non-cancellable and will continue in force so long as
the Bonds so insured are outstanding and the respective Preinsured Bond
Insurer remains in business. If the provider of an original issuance insurance
policy is unable to meet its obligations under such policy or if the rating
assigned to the claims-paying ability of any such insurer deteriorates, the
Portfolio Insurers have no obligation to insure any issue adversely affected
by either of the above described events.

The aforementioned portfolio insurance obtained by an Insured Trust, if any,
guarantees the timely payment of principal and interest on the Bonds as they
fall due. For the purposes of insurance obtained by an Insured Trust, 
"when due" generally means the stated maturity date for the payment of
principal and interest. However, in the event (a) an issuer of a Bond defaults
in the payment of principal or interest on such Bond, (b) such issuer enters
into a bankruptcy proceeding or (c) the maturity of such Bond is accelerated,
the affected Portfolio Insurer has the option, in its sole discretion, after
receiving notice of the earliest to occur of such a default, bankruptcy
proceeding or acceleration to pay the outstanding principal amount of such
Bond plus accrued interest to the date of such payment and thereby retire the
Bond from the affected Trust prior to such Bond's stated maturity date. The
insurance does not guarantee the market value of the Bonds or the value of the
Units. Insurance obtained by an Insured Trust, if any, is only effective as to
Bonds owned by and held in such Trust. In the event of a sale of any such Bond
by the Trustee, such insurance terminates as to such Bond on the date of sale.

Pursuant to an irrevocable commitment of the Portfolio Insurers, the Trustee,
upon the sale of a Bond covered under a portfolio insurance policy obtained by
an Insured Trust, has the right to obtain permanent insurance with respect to
such Bond (i.e., insurance to maturity of the Bonds regardless of the identity
of the holder thereof) (the "Permanent Insurance" ) upon the payment of
a single predetermined insurance premium and any expenses related thereto from
the proceeds of the sale of such Bond. Accordingly, any Bond in an Insured
Trust is eligible to be sold on an insured basis. It is expected that the
Trustee would exercise the right to obtain Permanent Insurance only if upon
such exercise the affected Trust would receive net proceeds (sale of Bond
proceeds less the insurance premium and related expenses attributable to the
Permanent Insurance) from such sale in excess of the sale proceeds if such
Bonds were sold on an uninsured basis. The insurance premium with respect to
each Bond eligible for Permanent Insurance would be determined based upon the
insurability of each Bond as of the Date of Deposit and would not be increased
or decreased for any change in the creditworthiness of each Bond.

The Sponsor believes that the Permanent Insurance option provides an advantage
to an Insured Trust in that each Bond insured by a Trust insurance policy may
be sold out of the affected Trust with the benefits of the insurance attaching
thereto. Thus, the value of the insurance, if any, at the time of sale, can be
realized in the market value of the Bond so sold (which is not the case in
connection with any value attributable to an Insured Trust's portfolio
insurance). See "Public Offering--Offering Price" . Because any such
insurance value may be realized in the market value of the Bond upon the sale
thereof upon exercise of the Permanent Insurance option, the Sponsor
anticipates that (a) in the event an Insured Trust were to be comprised of a
substantial percentage of Bonds in default or significant risk of default, it
is much less likely that such Trust would need at some point in time to seek a
suspension of redemptions of Units than if such Trust were to have no such
option (see "Public Offering--Redemption of Units" ) and (b) at the
time of termination of an Insured Trust, if such Trust were holding defaulted
Bonds or Bonds in significant risk of default such Trust would not need to
hold such Bonds until their respective maturities in order to realize the
benefits of such Trust's portfolio insurance (see "Trust
Administration--Amendment or Termination" ).

Except as indicated below, insurance obtained by an Insured Trust has no
effect on the price or redemption value of Units. It is the present intention
of the Evaluator to attribute a value for such insurance (including the right
to obtain Permanent Insurance) for the purpose of computing the price or
redemption value of Units if the Bonds covered by such insurance are in
default in payment of principal or interest or in significant risk of such
default. The value of the insurance will be the difference between (i) the
market value of a Bond which is in default in payment of principal or interest
or in significant risk of such default assuming the exercise of the right to
obtain Permanent Insurance (less the insurance premium and related expenses
attributable to the purchase of Permanent Insurance) and (ii) the market value
of such Bonds not covered by Permanent Insurance. See "Public
Offering--Offering Price" . It is also the present intention of the Trustee
not to sell such Bonds to effect redemptions or for any other reason but
rather to retain them in the portfolio because value attributable to the
insurance cannot be realized upon sale. See "Public Offering--Offering
Price" herein for a more complete description of an Insured Trust's method
of valuing defaulted Bonds and Bonds which have a significant risk of default.
Insurance obtained by the issuer of a Bond is effective so long as such Bond
is outstanding. Therefore, any such insurance may be considered to represent
an element of market value in regard to the Bonds thus insured, but the exact
effect, if any, of this insurance on such market value cannot be predicted.

The portfolio insurance policy or policies obtained by an Insured Trust, if
any, with respect to the Bonds in such Trust were issued by one or more of the
Portfolio Insurers. Any other Preinsured Bond insurance policy (or commitment
therefor) was issued by one of the Preinsured Bond Insurers. See 
"Unitholder Explanations--Settlement of Bonds in the Trusts--Objectives and
Securities Selection" .

AMBAC Indemnity Corporation ("AMBAC Indemnity" ) is a
Wisconsin-domiciled stock insurance corporation regulated by the Office of the
Commissioner of Insurance of the State of Wisconsin and licensed to do
business in 50 states, the District of Columbia and the Commonwealth of Puerto
Rico, with admitted assets of approximately $2,145,000,000 (unaudited) and
statutory capital of approximately $782,000,000 (unaudited) as of December 31,
1994. Statutory capital consists of AMBAC Indemnity's policyholders' surplus
and statutory contingency reserve. AMBAC Indemnity is a wholly owned
subsidiary of AMBAC Inc., a 100% publicly-held company. Moody's Investors
Service, Inc. and Standard & Poor's have both assigned a triple-A
claims-paying ability rating to AMBAC Indemnity.

Copies of its financial statements prepared in accordance with statutory
accounting standards are available from AMBAC Indemnity. The address of AMBAC
Indemnity's administrative offices and its telephone number are One State
Street Plaza, 17th Floor, New York, New York, 10004 and (212) 668-0340.

AMBAC Indemnity has entered into quota share reinsurance agreements under
which a percentage of the insurance underwritten pursuant to certain municipal
bond insurance programs of AMBAC Indemnity has been and will be assumed by a
number of foreign and domestic unaffiliated reinsurers.

MBIA Insurance Corporation ("MBIA" ) is the principal operating
subsidiary of MBIA Inc., a New York Stock Exchange listed company. MBIA Inc.
is not obligated to pay the debts of or claims against MBIA. MBIA is a limited
liability corporation rather than a several liability association. MBIA is
domiciled in the State of New York and licensed to do business in all fifty
states, the District of Columbia, the Commonwealth of the Northern Mariana
Islands, the Commonwealth of Puerto Rico, the Virgin Islands of the United
States and the Territory of Guam. As of March 31, 1995 MBIA had admitted
assets of $3.5 billion (unaudited), total liabilities of $2.4 billion
(unaudited), and total capital and surplus of $1.1 billion (unaudited)
determined in accordance with statutory accounting practices prescribed or
permitted by insurance regulatory authorities. As of December 31, 1994, the
Insurer had admitted assets of $3.4 billion (audited), total liabilities of
$2.3 billion (audited), and total capital and surplus of $1.1 billion
(audited) determined in accordance with statutory accounting practices
prescribed or permitted by insurance regulatory authorities. Copies of MBIA's
year end financial statements prepared in accordance with statutory accounting
practices are available from MBIA. The address of MBIA is 113 King Street,
Armonk, New York 10504.

Effective December 31, 1989, MBIA Inc. acquired Bond Investors Group, Inc. On
January 5, 1990, MBIA acquired all of the outstanding stock of Bond Investors
Group, Inc., the parent of Bond Investors Guaranty Insurance Company (BIG),
now known as MBIA Insurance Corp. of Illinois. Through a reinsurance
agreement, BIG has ceded all of its net insured risks, as well as its unearned
premium and contingency reserves, to MBIA and MBIA has reinsured BIG's net
outstanding exposure.

Moody's Investors Service, Inc. rates all bond issues insured by MBIA 
"Aaa" and short term loans "MIG 1," both designated to be of the
highest quality.

Standard & Poor's rates all new issues insured by MBIA "AAA" Prime
Grade.

The Moody's Investors Service, Inc. rating of MBIA should be evaluated
independently of the Standard & Poor's rating of MBIA. No application has been
made to any other rating agency in order to obtain additional ratings on the
Bonds. The ratings reflect the respective rating agency's current assessment
of the creditworthiness of MBIA and its ability to pay claims on its policies
of insurance. Any further explanation as to the significance of the above
ratings may be obtained only from the applicable rating agency.

The above ratings are not recommendations to buy, sell or hold the Bonds, and
such ratings may be subject to revision or withdrawal at any time by the
rating agencies. Any downward revision or withdrawal of either or both ratings
may have an adverse effect on the market price of the Bonds.

Financial Guaranty Insurance Company ("Financial Guaranty" or 
"GIC" ) is a wholly-owned subsidiary of FGIC Corporation (the 
"orporation" ), a Delaware holding company. The Corporation is a
wholly-owned subsidiary of General Electric Capital Corporation ("GECC" 
). Neither the Corporation nor GECC is obligated to pay the debts of or the
claims against Financial Guaranty. Financial Guaranty is domiciled in the
State of New York and is subject to regulation by the State of New York
Insurance Department. As of June 30, 1995, the total capital and surplus of
Financial Guaranty was approximately $978,500,000. Copies of Financial
Guaranty's financial statements, prepared on the basis of statutory accounting
principles, and the Corporation's financial statements, prepared on the basis
of generally accepted accounting principles, may be obtained by writing to
Financial Guaranty at 115 Broadway, New York, New York 10006, Attention:
Communications Department, telephone number: (212) 312-3000 or to the New York
State Insurance Department at 160 West Broadway, 18th Floor, New York, New
York 10013, Attention: Property Companies Bureau, telephone number: (212)
621-0389.

In addition, Financial Guaranty Insurance Company is currently licensed to
write insurance in all 50 states and the District of Columbia.

Financial Security Assurance, Inc. ("Financial Security" or 
"FSA" ) is a monoline insurance company incorporated on March 16, 1984 under
the laws of the State of New York. The operations of Financial Security
commenced on July 25, 1985, and Financial Security received its New York State
insurance license on September 23, 1985. Financial Security and its two wholly
owned subsidiaries are licensed to engage in the financial guaranty insurance
business in 49 states, the District of Columbia and Puerto Rico.

Financial Security and its subsidiaries are engaged exclusively in the
business of writing financial guaranty insurance, principally in respect of
asset-backed and other collateralized securities offered in domestic and
foreign markets. Financial Security and its subsidiaries also write financial
guaranty insurance in respect of municipal and other obligations and reinsure
financial guaranty insurance policies written by other leading insurance
companies. In general, financial guaranty insurance consists of the issuance
of a guaranty of scheduled payments of an issuer's securities, thereby
enhancing the credit rating of those securities, in consideration for payment
of a premium to the insurer.

Financial Security is approximately 91.6% owned by U S WEST, Inc. and 8.4%
owned by The Tokio Marine and Fire Insurance Co., Ltd. ("Tokio Marine" 
). Neither U S WEST, Inc. nor Tokio Marine is obligated to pay the debts of or
the claims against Financial Security. Financial Security is domiciled in the
State of New York and is subject to regulation by the State of New York
Insurance Department. As of March 31, 1993, the total policyholders' surplus
and contingency reserves and the total unearned premium reserve, respectively,
of Financial Security and its consolidated subsidiaries were, in accordance
with generally accepted accounting principles, approximately $479,110,000
(unaudited) and $220,078,000 (unaudited), and the total shareholders' equity
and the total unearned premium reserve, respectively, of Financial Security
and its consolidated subsidiaries were, in accordance with generally accepted
accounting principles, approximately $628,119,000 (unaudited) and $202,493,000
(unaudited). Copies of Financial Security's financial statements may be
obtained by writing to Financial Security at 350 Park Avenue, New York, New
York, 10022, Attention: Communications Department. Its telephone number is
(212) 826-0100.

Pursuant to an intercompany agreement, liabilities on financial guaranty
insurance written by Financial Security or either of its subsidiaries are
reinsured among such companies on an agreed-upon percentage substantially
proportional to their respective capital, surplus and reserves, subject to
applicable statutory risk limitations. In addition, Financial Security
reinsures a portion of its liabilities under certain of its financial guaranty
insurance policies with unaffiliated reinsurers under various quota share
treaties and on a transaction-by-transaction basis. Such reinsurance is
utilized by Financial Security as a risk management device and to comply with
certain statutory and rating agency requirements; it does not alter or limit
Financial Security's obligations under any financial guaranty insurance policy.

Financial Security's claims-paying ability is rated "Aaa" by Moody's
Investors Service, Inc., and "AAA" by Standard & Poor's, Nippon
Investors Service Inc., Duff & Phelps Inc. and Australian Ratings Pty. Ltd.
Such ratings reflect only the views of the respective rating agencies, are not
recommendations to buy, sell or hold securities and are subject to revision or
withdrawal at any time by such rating agencies.

Capital Guaranty Insurance Company ("Capital Guaranty" ) is a 
"Aaa/AAA" rated monoline stock insurance company incorporated in the State
of Maryland, and is a wholly owned subsidiary of Capital Guaranty Corporation,
a Maryland insurance holding company. Capital Guaranty Corporation is a
publicly owned company whose shares are traded on the New York Stock Exchange.

Capital Guaranty is authorized to provide insurance in all 50 states, the
District of Columbia, the Commonwealth of Puerto Rico, Guam and the U.S.
Virgin Islands. Capital Guaranty focuses on insuring municipal securities and
our policies guaranty the timely payment of principal and interest when due
for payment on new issue and secondary market issue municipal bond
transactions. Capital Guaranty's claims-paying ability is rated 
"Triple-A" by both Moody's and Standard & Poor's. Therefore, if Capital
Guaranty insures an issue with a stand alone rating of less than 
"Triple-A," such issue would be "upgraded" to "Aaa/AAA" by
virtue of Capital Guaranty's Insurance.

 As of December 31, 1994, Capital Guaranty had more than $15.7 billion in net
exposure outstanding (excluding defeased issues). The total statutory
policyholders' surplus and contingency reserve of Capital Guaranty was
$196,529,000, and the total admitted assets were $303,723,316 as reported to
the Insurance Department of the State of Maryland as of December 31, 1994.
Financial statements for Capital Guaranty Insurance Company, that have been
prepared in accordance with statutory insurance accounting standards, are
available upon request. The address of Capital Guaranty's headquarters and its
telephone number are Steuart Tower, 22nd Floor, One Market Plaza, San
Francisco, CA 94105-1413 and (415) 995-8000.

CapMAC is a New York-domiciled monoline stock insurance company which engages
only in the business of financial guarantee and surety insurance. CapMAC is
licensed in 50 states in addition to the District of Columbia, the
Commonwealth of Puerto Rico and the territory of Guam. CapMAC insures
structured asset-backed, corporate, municipal and other financial obligations
in the U.S. and international capital markets. CapMAC also provides financial
guarantee reinsurance for structured asset-backed, corporate, municipal and
other financial obligations written by other major insurance companies. 

CapMAC's claims-paying ability is rated "Aaa" by Moody's Investors
Service, Inc., "AAA" by Standard & Poor's, "AAA" by Duff &
Phelps Credit Rating Co. and "AAA" by Nippon Investors Service Inc.
Such ratings reflect only the views of the respective rating agencies, are not
recommendations to buy, sell or hold securities and are subject to revision or
withdrawal at any time by such rating agencies. 

CapMAC is wholly owned by CapMAC Holdings Inc. ("Holdings" ), a company
that is owned by a group of institutional and other investors, including
CapMAC's management and employees. Neither Holdings nor any of its
stockholders is obligated to pay any claims under any policy issued by CapMAC
or any debts of CapMAC or to make additional capital contributions. 

CapMAC is regulated by the Superintendent of Insurance of the State of New
York. In addition, CapMAC is subject to regulation by the insurance
departments of the other jurisdictions in which it is licensed. Such insurance
laws regulate, among other things, the amount of net exposure per risk that
CapMAC may retain, capital transfers, dividends, investment of assets, changes
in control, transactions with affiliates and consolidations and acquisitions.
CapMAC is subject to periodic regulatory examinations by the same regulatory
authorities. 

CapMAC's obligations under the Policy(s) may be reinsured. Such reinsurance
does not relieve CapMAC of any of its obligations under the Policy(s). 

THE POLICY IS NOT COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND
SPECIFIED IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW. 

As at December 31, 1994 and 1993, CapMAC had qualified statutory capital
(which consists of policyholders' surplus and contingency reserve) of
approximately $170 million and $168 million, respectively, and had not
incurred any debt obligations. Article 69 of the New York State Insurance Law
requires CapMAC to establish and maintain the contingency reserve, which is
available to cover claims under policies issued by CapMAC. 

Copies of CapMAC's financial statements prepared in accordance with statutory
accounting standards, which differ from generally accepted accounting
principles, and filed with the Insurance Department of the State of New York
are available upon request. CapMAC is located at 885 Third Avenue, New York,
New York 10022, and its telephone number is (212) 755-1155. 

In order to be in an Insured Trust, Bonds must be insured by one of the
Preinsured Bond Insurers or be eligible for the insurance being obtained by
such Trust. In determining eligibility for insurance, the Preinsured Bond
Insurers, AMBAC Indemnity and Financial Guaranty have applied their own
standards which correspond generally to the standards they normally use in
establishing the insurability of new issues of municipal bonds and which are
not necessarily the criteria used in the selection of Bonds by the Sponsor. To
the extent the standards of the Preinsured Bond Insurers, AMBAC Indemnity and
Financial Guaranty are more restrictive than those of the Sponsor, the
previously stated Trust investment criteria have been limited with respect to
the Bonds. This decision is made prior to the Date of Deposit, as debt
obligations not eligible for insurance are not deposited in an Insured Trust.
Thus, all of the Bonds in the portfolios of the Insured Trusts in the Fund are
insured either by the respective Trust or by the issuer of the Bonds, by a
prior owner of such Bonds or by the Sponsor prior to the deposit of such Bonds
in a Trust.

Because the Bonds are insured by one of the Portfolio Insurers or one of the
Preinsured Bond Insurers as to the timely payment of principal and interest,
when due, and on the basis of the various reinsurance agreements in effect,
Standard & Poor's has assigned to the Units of each Insured Trust its "
AAA" investment rating. See "Description of Securities Ratings" .
The obtaining of this rating by an Insured Trust should not be construed as an
approval of the offering of the Units by Standard & Poor's or as a guarantee
of the market value of such Trust or of the Units.

An objective of portfolio insurance obtained by an Insured Trust is to obtain
a higher yield on the portfolio of such Trust than would be available if all
the Securities in such portfolio had Standard & Poor's "AAA" rating
and yet at the same time to have the protection of insurance of prompt payment
of interest and principal, when due, on the Bonds. There is, of course, no
certainty that this result will be achieved. Preinsured Bonds in an Insured
Trust (all of which are rated "AAA" by Standard & Poor's) may or may
not have a higher yield than uninsured bonds rated "AAA" by Standard &
Poor's. In selecting such Bonds for an Insured Trust, the Sponsor has applied
the criteria hereinbefore described.

In the event of nonpayment of interest or principal, when due, in respect of a
Bond, AMBAC Indemnity shall make such payment not later than 30 days and
Financial Guaranty shall make such payment within one business day after the
respective insurer has been notified that such nonpayment has occurred or is
threatened (but not earlier than the date such payment is due). The insurer,
as regards any payment it may make, will succeed to the rights of the Trustee
in respect thereof. All policies issued by the Portfolio Insurers and the
Preinsured Bond Insurers are substantially identical insofar as obligations to
an Insured Trust are concerned.

The Internal Revenue Service has issued a letter ruling which holds in effect
that insurance proceeds representing maturing interest on defaulted municipal
obligations paid to holders of insured bonds, under policy provisions
substantially identical to the policies described herein, will be excludable
from Federal gross income under Section 103(a)(1) of the Internal Revenue Code
to the same extent as if such payments were made by the issuer of the
municipal obligations. Holders of Units in an Insured Trust should discuss
with their tax advisers the degree of reliance which they may place on this
letter ruling. However, Chapman and Cutler, counsel for the Sponsor, has given
an opinion to the effect such payment of proceeds would be excludable from
Federal gross income if, and to the same extent as, such interest would have
been so excludable if paid by the issuer of the defaulted obligations. See
"Other Matters--Federal Tax Status" .

Each Portfolio Insurer is subject to regulation by the department of insurance
in the state in which it is qualified to do business. Such regulation,
however, is no guarantee that each Portfolio Insurer will be able to perform
on its contract of insurance in the event a claim should be made thereunder at
some time in the future. At the date hereof, it is reported that no claims
have been submitted or are expected to be submitted to any of the Portfolio
Insurers which would materially impair the ability of any such company to meet
its commitment pursuant to any contract of bond or portfolio insurance.

The information relating to each Portfolio Insurer has been furnished by such
companies. The financial information with respect to each Portfolio Insurer
appears in reports filed with state insurance regulatory authorities and is
subject to audit and review by such authorities. No representation is made
herein as to the accuracy or adequacy of such information or as to the absence
of material adverse changes in such information subsequent to the dates
thereof.

The Bonds in the Insured Trusts are insured as follows: 


   
<TABLE>
<CAPTION>
                      Bonds insured           Bonds insured                                 
                      under AMBAC             under Financial                               
Trust                 Indemnity               Guaranty                Preinsured    Total   
                      portfolio insurance     portfolio insurance     Bonds                 
<S>                   <C>                     <C>                     <C>           <C>     
Colorado IM-IT....... --                      --                      100%          100%    
New Jersey IM-IT..... --                      --                      100%          100%    
Pennsylvania IM-IT... --                      --                      100%          100%    
</TABLE>


The breakdown of the Preinsured Bonds is as follows: Colorado IM-IT
Trust--Capital Guaranty 26%, Financial Guaranty 27% and MBIA 47%; New Jersey
IM-IT Trust--AMBAC Indemnity 16%, Financial Guaranty 9%, MBIA 60% and FSA 15%;
Pennsylvania IM-IT Trust--AMBAC Indemnity 13%, Financial Guaranty 48%, MBIA
22% and CapMAC 17%.
    


   
COLORADO IM-IT TRUST

General. The Colorado IM-IT Trust consists of 9 issues of Securities. Three of
the Bonds in the Colorado IM-IT Trust are general obligations of the
governmental entities issuing them and are backed by the taxing power thereof.
The remaining issues are payable from the income of a specific project or
authority and are not supported by the issuer's power to levy taxes. These
issues are divided by purpose of issues (and percentage of principal amount to
total Colorado IM-IT Trust) as follows: General Obligations, 3 (36%); Airport,
1 (17%); Public Education, 1 (16%); Transportation, 1 (10%); Public Building,
1 (9%); Industrial Revenue, 1 (7%) and Health Care, 1 (5%). No Bond issue has
received a provisional rating.

Risk Factors. The State Constitution requires that expenditures for any fiscal
year not exceed revenues for such fiscal year. By statute, the amount of
General Fund revenues available for appropriation is based upon revenue
estimates which, together with other available resources, must exceed annual
appropriations by the amount of the unappropriated reserve (the "
Unappropriated Reserve" ). The Unappropriated Reserve requirement for
fiscal year 1991, 1992 and 1993 was set at 3% of total appropriations from the
General Fund. For fiscal years 1994 and thereafter, the Unappropriated Reserve
requirement is set at 4%. In addition to the Unappropriated Reserve, a
constitutional amendment approved by Colorado voters in 1992 requires the
State and each local government to reserve a certain percentage of its fiscal
year spending (excluding bonded debt service) for emergency use (the 
"Emergency Reserve" ). The minimum Emergency Reserve is set at 2% for 1994
and 3% for 1995 and later years. For fiscal year 1992 and thereafter, General
Fund appropriations are also limited by statute to an amount equal to the cost
of performing certain required reappraisals of taxable property plus an amount
equal to the lesser of (i) five percent of Colorado personal income or (ii)
106% of the total General Fund appropriations for the previous fiscal year.
This restriction does not apply to any General Fund appropriations which are
required as a result of a new federal law, a final state or federal court
order or moneys derived from the increase in the rate or amount of any tax or
fee approved by a majority of the registered electors of the State voting at
any general election. In addition, the statutory limit on the level of General
Fund appropriations may be exceeded for a given fiscal year upon the
declaration of a State fiscal emergency by the State General Assembly. 

The 1993 fiscal General Fund balance was $326.8 million, which was $196.9
million over the combined Unappropriated Reserve and Emergency Reserve
requirement. The 1994 fiscal year ending General Fund balance (exclusive of
$39.0 million allocated to Emergency Reserve) was $320.4 million, or $188.6
million over the required Unappropriated Reserve. Based on December 20, 1994
estimates, the 1995 fiscal year ending General Fund balance (exclusive of
$74.1 million allocated to Emergency Reserve) is expected to be $276.8
million, or $135.1 million over the required Unappropriated Reserve. 

On November 3, 1992, voters in Colorado approved a constitutional amendment
(the "Amendment" ) which, in general, became effective December 31,
1992, and which could restrict the ability of the State and local governments
to increase revenues and impose taxes. The Amendment applies to the State and
all local governments, including home rule entities ("Districts" ).
Enterprises, defined as government-owned businesses authorized to issue
revenue bonds and receiving under 10% of annual revenue in grants from all
Colorado state and local governments combined, are excluded from the
provisions of the Amendment. 

The provisions of the Amendment are unclear and have required judicial
interpretation. Among other provisions, beginning November 4, 1992, the
Amendment requires voter approval prior to tax increases, creation of debt, or
mill levy or valuation for assessment ratio increases. The Amendment also
limits increases in government spending and property tax revenues to specified
percentages. The Amendment requires that District property tax revenues yield
no more than the prior year's revenues adjusted for inflation, voter approved
changes and (except with regard to school districts) local growth in property
values according to a formula set forth in the Amendment. School districts are
allowed to adjust tax levies for changes in student enrollment. Pursuant to
the Amendment, local government spending is to be limited by the same formula
as the limitation for property tax revenues. The Amendment limits increases in
expenditures from the State General Fund and program revenues (cash funds) to
the growth in inflation plus the percentage change in State population in the
prior calendar year. The basis for initial spending and revenue limits are
fiscal year 1992 spending and 1991 property taxes collected in 1992. The basis
for spending and revenue limits for fiscal year 1994 and later years will be
the prior fiscal year's spending and property taxes collected in the prior
calendar year. Debt service changes, reductions and voter-approved revenue
changes are excluded from the calculation basis. The Amendment also prohibits
new or increased real property transfer tax rates, new State real property
taxes and local District income taxes. 

Litigation concerning several issues relating to the Amendment has been
brought in the Colorado courts. The litigation deals with three principal
issues: (i) whether Districts can increase mill levies to pay debt service on
general obligation bonds without obtaining voter approval; (ii) whether a
multi-year lease purchase agreement subject to annual appropriations is an
obligation which requires voter approval prior to execution of the agreement;
and (iii) what constitutes an "enterprise" which is excluded from the
provisions of the Amendment. In September, 1994, the Colorado Supreme Court
held that Districts can increase mill levies to pay levies to pay debt service
on general obligation bonds issued after the effective date of the Amendment;
litigation regarding mill levy increases to pay general obligation bonds
issued prior to the Amendment is still pending. In late 1994, the Colorado
Court of Appeals held that multi-year lease-purchase agreements subject to
annual appropriation do not require voter approval. The time to file an appeal
in that case has expired. An appeal of the primary case addressing the
remaining issue has been heard by the Colorado Supreme Court; an opinion is
expected by mid-1995. The outcome of that appeal cannot be predicted at this
time.

According to the Colorado Economic Perspective, Fourth Quarter, FY 1994-95,
December 20, 1994 (the "Economic Report" ), inflation for 1993 was 4.2%
and population grew at the rate of 2.9% in Colorado. Accordingly, under the
Amendment, increases in State expenditures during the 1995 fiscal year will be
limited to 7.1% over expenditures during the 1994 fiscal year. The 1994 fiscal
year is the base year for calculating the limitation for the 1995 fiscal year.
The limitation for the 1996 fiscal year is projected to be 6.9%, based on
projected inflation of 4.4% for 1994 and projected population growth of 2.5%
during 1994. For the 1994 fiscal year, General Fund revenues totalled $3,596.1
million and program revenues (cash funds) totalled $1,659.8 million, resulting
in total estimated base revenues of $5,629.1 million. Expenditures for the
1995 fiscal year, therefore, cannot exceed $5,629.1 million. However, the 1995
fiscal year General Fund and program revenues (cash funds) are projected to be
only $5,536.3 million, or $92.8 million less than expenditures allowed under
the spending limitation. 

There is also a statutory restriction on the amount of annual increases in
taxes that the various taxing jurisdictions in Colorado can levy without
electoral approval. This restriction does not apply to taxes levied to pay
general obligation debt. 

As the State experienced revenue shortfalls in the mid-1980s, it adopted
various measures, including impoundment of funds by the Governor, reduction of
appropriations by the General Assembly, a temporary increase in the sales tax,
deferral of certain tax reductions and inter-fund borrowings. On a GAAP basis,
the State had unrestricted General Fund balances at June 30 of approximately
$134.4 million in fiscal year 1989, $116.6 million in fiscal year 1990, $16.3
million in fiscal year 1991, $133.3 million in fiscal year 1992, $326.6
million in fiscal year 1993 and $320.4 million in fiscal year 1994. The fiscal
year 1995 unrestricted General Fund is currently projected to be $276.8
million. 

For fiscal year 1994, the following tax categories generated the following
respective revenue percentages of the State's $3,596.1 million total gross
receipts: individual income taxes represented 53.4% of gross fiscal year 1994
receipts; sales, use and excise taxes represented 31.2% of gross fiscal year
1994 receipts; and corporate income taxes represented 4.1% of gross fiscal
year 1994 receipts. The final budget for fiscal year 1995 projects general
fund revenues of approximately $3,797.2 million and appropriations of
approximately $3,542.1 million. The percentages of general fund revenue
generated by type of tax for fiscal year 1995 are not expected to be
significantly different from fiscal year 1994 percentages. 

Under its constitution, the State of Colorado is not permitted to issue
general obligation bonds secured by the full faith and credit of the State.
However, certain agencies and instrumentalities of the State are authorized to
issue bonds secured by revenues from specific projects and activities. The
State enters into certain lease transactions which are subject to annual
renewal at the option of the State. In addition, the State is authorized to
issue short-term revenue anticipation notes. Local governmental units in the
State are also authorized to incur indebtedness. The major source of financing
for such local government indebtedness is an ad valorem property tax. In
addition, in order to finance public projects, local governments in the State
can issue revenue bonds payable from the revenues of a utility or enterprise
or from the proceeds of an excise tax, or assessment bonds payable from
special assessments. Colorado local governments can also finance public
projects through leases which are subject to annual appropriation at the
option of the local government. Local governments in Colorado also issue tax
anticipation notes. The Amendment requires prior voter approval for the
creation of any multiple fiscal year debt or other financial obligation
whatsoever, except for refundings at a lower rate or obligations of an
enterprise. 

Based on data published by the State of Colorado, Office of State Planning and
Budgeting as presented in the Economic Report, over 50% of non-agricultural
employment in Colorado in 1994 was concentrated in the retail and wholesale
trade and service sectors, reflecting the importance of tourism to the State's
economy and of Denver as a regional economic and transportation hub. The
government and manufacturing sectors followed as the fourth and fifth largest
employment sectors in the State, representing approximately 17.5% and 11%,
respectively, of non-agricultural employment in the State in 1994. The Office
of Planning and Budgeting projects similar concentrations for 1995 and 1996. 

According to the Economic Report, the unemployment rate improved slightly from
an average of 5.2% during 1993 to 4.9% during 1994. Total retail sales
increased by 11.3% during 1994. Colorado continued to surpass the job growth
rate of the U.S. with a 3.5% rate of growth projected for Colorado in 1994, as
compared with 2.6% for the nation as a whole. However, the rate of job growth
in Colorado is expected to decline in 1995, primarily due to the completion in
1994 of large public works projects such as Denver International Airport,
Coors Baseball Field, the Denver public Library renovation project, the
closure of Lowry Air Force Base and cutbacks at Rocky Flats.

Personal income rose 7.4% in Colorado during 1993 and 7.1% in 1992. During
1994, personal income rose 6.7% in Colorado, as compared with 5.9% for the
nation as a whole.

Economic conditions in the State may have continuing effects on other
governmental units within the State (including issuers of the Bonds in the
Colorado IM-IT Trust), which, to varying degrees, have also experienced
reduced revenues as a result of recessionary conditions and other factors. 

Tax Status. For a discussion of the Federal tax status of income earned on
Colorado IM-IT Trust Units, see "Other Matters--Federal Tax Status" . 

Neither the Sponsor nor its counsel have independently examined the Bonds to
be deposited in and held in the Trust. However, although Chapman and Cutler
expresses no opinion with respect to the issuance of the Bonds, in rendering
its opinion expressed herein, it has assumed that: (i) the Bonds were validly
issued, (ii) the interest thereon is excludable from gross income for federal
income tax purposes, and (iii) interest on the Bonds, if received directly by
a Unitholder, would be exempt from the income tax imposed by the State that is
applicable to individuals and corporations (the "State Income Tax" ).
This opinion does not address the taxation of persons other than full time
residents of Colorado. 

In the opinion of Chapman and Cutler, counsel to the Sponsor, under existing
Colorado law: 

Because Colorado income tax law is based upon the Federal law, the Colorado
IM-IT Trust is not an association taxable as a corporation for purposes of
Colorado income taxation. 

With respect to Colorado Unitholders, in view of the relationship between
Federal and Colorado tax computations described above:

Each Colorado Unitholder will be treated as owning a pro rata share of each
asset of the Colorado IM-IT Trust for Colorado income tax purposes in the
proportion that the number of Units of such Trust held by the Unitholder bears
to the total number of outstanding Units of the Colorado IM-IT Trust, and the
income of the Colorado IM-IT Trust will therefore be treated as the income of
each Colorado Unitholder under Colorado law in the proportion described and 
an item of income of the Colorado IM-IT Trust will have the same character in
the hands of a Colorado Unitholder as it would have in the hands of the
Trustee; 

Interest on Bonds that would not be includable in income for Colorado income
tax purposes when paid directly to a Colorado Unitholder will be exempt from
Colorado income taxation when received by the Colorado IM-IT Trust and
attributed to such Colorado Unitholder and when distributed to such Colorado
Unitholder; 

Any proceeds paid under an insurance policy or policies issued to the Colorado
IM-IT Trust with respect to the Bonds in the Colorado IM-IT Trust which
represent maturing interest on defaulted obligations held by the Trustee will
be excludable from Colorado adjusted gross income if, and to the same extent
as, such interest would have been so excludable if paid by the issuer of the 
defaulted obligations provided that, at the time such policies are purchased,
the amounts paid for such policies are reasonable, customary and consistent
with the reasonable expectation that the issuer of the obligations, rather
than the insurer, will pay debt service on the obligations.; 

Any proceeds paid under individual policies obtained by issuers of Bonds in
the Colorado IM-IT Trust which represent maturing interest on defaulted
obligations held by the Trustee will not be includable in income for Colorado
income tax purposes if, and to the same extent as, such interest would not
have been so includable if paid by the issuer of the defaulted obligations
provided that, at the time such policies are purchased, the amounts paid for 
such policies are reasonable, customary and consistent with the reasonable 
expectation that the issuer of the obligations, rather than the insurer, 
will pay debt service on the obligations.; 

Each Colorado Unitholder will realize taxable gain or loss when the Colorado
IM-IT Trust disposes of a Bond (whether by sale, exchange, redemption, or
payment at maturity) or when the Colorado Unitholder redeems or sells Units at
a price that differs from original cost as adjusted for amortization of bond
discount or premium and other basis adjustments (including any basis reduction
that may be required to reflect a Colorado Unitholder's share of interest, if
any, accruing on Bonds during the interval between the Colorado Unitholder's
settlement date and the date such Bonds are delivered to the Colorado IM-IT
Trust, if later); 

Tax cost reduction requirements relating to amortization of bond premium may,
under some circumstances, result in Colorado Unitholders realizing taxable
gain when their Units are sold or redeemed for an amount equal to or less than
their original cost; and 

If interest on indebtedness incurred or continued by a Colorado Unitholder to
purchase Units in the Colorado IM-IT Trust is not deductible for federal
income tax purposes, it also will be non-deductible for Colorado income tax
purposes. 

Unitholders should be aware that all tax-exempt interest, including their
share of interest on the Bonds paid to the Colorado IM-IT Trust, is taken into
account for purposes of determining eligibility for the Colorado Property
Tax/Rent/Heat Rebate.



<TABLE>
<CAPTION>
                                                                                          Semi-     
Per Unit Information:                                                        Monthly      Annual 
<S>                                                                         <C>          <C>     
Calculation of Estimated Net Annual Unit Income <F1>:                                               
 Estimated Annual Interest Income per Unit................................. $     53.44  $    53.44 
 Less: Estimated Annual Expense per Unit <F2>.............................. $      2.24  $     1.75 
 Less: Annual Premium on Portfolio Insurance per Unit......................          --          -- 
 Estimated Net Annual Interest Income per Unit............................. $     51.20  $    51.69 
Calculation of Estimated Interest Earnings per Unit:                                                
 Estimated Net Annual Interest Income per Unit............................. $     51.20  $    51.69 
 Divided by 12 and 2, respectively......................................... $      4.27  $    25.85 
Estimated Daily Rate of Net Interest Accrual per Unit...................... $    .14220  $   .14356 
Estimated Current Return Based on Public Offering Price <F1><F3><F4><F5>...        5.12%       5.17%
Estimated Long-Term Return <F3><F4><F5>....................................        5.07%       5.13%
Estimated Initial Monthly Distribution (December 1995)..................... $      5.97             
Estimated Initial Semi-annual Distribution (January 1996)..................              $    10.34 
Estimated Normal Distribution per Unit <F5>................................ $      4.27  $    25.85 
</TABLE>


  



<TABLE>
<CAPTION>
<S>                             <C>                                                                 
Trustee's Annual Fee <F1>...... $.91 and $.51 per $1,000 principal amount of Bonds, respectively, for those portions of the    
                                Colorado IM-IT Trust under the monthly and semi-annual distribution plans                      
Record and Computation Dates... FIRST day of the month as follows: monthly--each month; semi-annual--January and July          
Distribution Dates............. FIFTEENTH day of the month as follows: monthly--each month; semi-annual--                      
                                January and July commencing December 15, 1995                                                  




<FN>
<F1>During the first year the Trustee will reduce its fee by approximately $.11
per Unit (which amount is the estimated interest to be earned per Unit prior
to the expected delivery dates for the "when, as and if issued" Bonds
included in this Trust). Should such estimated interest exceed such amount,
the Trustee will reduce its fee up to its annual fee. After the first year,
the Trustee's fee will be that amount indicated above. Estimated Annual
Interest Income per Unit will be increased to $53.55. Estimated Annual Expense
per Unit (excluding insurance) will be increased to $2.35 and $1.86 under the
monthly and semi-annual distribution plans, respectively; and Estimated Net
Annual Interest Income per Unit will remain the same as shown. See 
"Estimated Current Returns and Estimated Long-Term Returns." 

<F2>Excluding insurance costs. The Estimated Annual Expenses are expected to
fluctuate periodically (see "Trust Administration--Fund Administration and
Expenses--Miscellaneous Expenses" ).

<F3>The Estimated Current Returns and Estimated Long-Term Returns are increased
for transactions entitled to a reduced sales charge. See "Unitholder
Explanations--Public Offering--General" .

<F4>The Estimated Current Returns are calculated by dividing the Estimated Net
Annual Interest Income per Unit by the Public Offering Price. The Estimated
Net Annual Interest Income per Unit will vary with changes in fees and
expenses of the Trustee and the Evaluator and with the principal prepayment,
redemption, maturity, exchange or sale of Securities while the Public Offering
Price will vary with changes in the offering price of the underlying
Securities; therefore, there is no assurance that the present Estimated
Current Returns indicated above will be realized in the future. The Estimated
Long-Term Returns are calculated using a formula which (1) takes into
consideration, and determines and factors in the relative weightings of, the
market values, yields (which takes into account the amortization of premiums
and the accretion of discounts) and estimated retirements of all of the
Securities in the Trust and (2) takes into account the expenses and sales
charge associated with each Trust Unit. Since the market values and estimated
retirements of the Securities and the expenses of the Trust will change, there
is no assurance that the present Estimated Long-Term Returns as indicated
above will be realized in the future. The Estimated Current Returns and
Estimated Long-Term Returns are expected to differ because the calculation of
the Estimated Long-Term Return reflects the estimated date and amount of
principal returned while the Estimated Current Return calculation includes
only net annual interest income and Public Offering Price.

<F5>These figures are based on estimated per Unit cash flows. Estimated cash flows
will vary with changes in fees and expenses, with changes in current interest
rates and with the principal prepayment, redemption, maturity, call, exchange
or sale of the underlying Securities. The estimated cash flows for this Series
are set forth under "Estimated Cash Flows to Unitholders" .
</TABLE>





<TABLE>
COLORADO INSURED MUNICIPALS INCOME TRUST
SERIES 77 (186TH INSURED MULTI-SERIES)
PORTFOLIO As of October 16, 1995
<CAPTION>
                                                                                                               Offering            
                                                                                                               Price To            
                                                                                                               Colorado            
Aggregate     Name of Issuer, Title, Interest Rate and Maturity Date of                    Redemption          IM-IT               
              either Bonds Deposited or Bonds Contracted for<F1><F5>           Rating<F2>  Feature<F3>         Trust<F4>           
<S>           <C>                                                           <C>            <C>                 <C>             
$    200,000  Morgan County, Colorado, Pollution Control Refunding Revenue                                                         
              Bonds, Series 1993A (Public Service Company of Colorado                                                              
              Project) MBIA Insured   #5.50% Due 6/1/2012..................           AAA  2003 @ 101          $    198,840        
     425,000  School District No. 12, Adams County, Colorado (Adams Twelve                                                         
              Five Star Schools) Tax-Exempt General Obligation Bonds,                      2005 @ 100                              
              Series 1995C (MBIA Insured)**   #5.60% Due 12/15/2012........           AAA  2009 @ 100 S.F.          427,125        
     500,000  Summit County, Colorado, School District No. RE 1, Series A                  2005 @ 100                              
              (FGIC Insured)   #5.70% Due 12/1/2014........................           AAA  2011 @ 100 S.F.          504,370        
     275,000  Puerto Rico Public Buildings Authority, Guaranteed Public                                                            
              Education and Health Facilities, Refunding Series M                          2003 @ 101.5                            
              (Capital Guaranty Insured)   #5.75% Due 7/1/2015.............           AAA  2011 @ 100 S.F.          277,692        
     300,000  Arapahoe County, Colorado, Capital Improvement Trust Fund,                                                           
              Highway Revenue Bonds (E-470 Vehicle Regulation)   MBIA                      2005 @ 103                              
              Insured   6.05% Due 8/31/2015................................           AAA  2011 @ 100 S.F.          310,128        
     500,000  Colorado Post Secondary Educational Facility Authority,                                                              
              Revenue Bonds, Series 1995 (The Auraria Foundation Project)                  2005 @ 100                              
               Capital Guaranty Insured   #6.00% Due 9/1/2015..............           AAA  2011 @ 100 S.F.          511,770        
     150,000  City and County of Denver, Colorado, Hospital Revenue Bonds                                                          
              (The Children's Hospital Association Project) Series 1993                    2003 @ 102                              
              (FGIC Insured)   #6.00% Due 10/1/2015........................           AAA  2006 @ 100 S.F.          153,557        
     150,000  City of Thornton, Colorado, Unlimited Tax-General Obligation                                                         
              Water Refunding Capital Appreciation Bonds, Series 1991                                                              
              (FGIC Insured)   #0.00% Due 12/1/2015........................           AAA                            46,710  <F6>
     500,000  City and County of Denver, Colorado, Airport System Revenue                  2005 @ 102                              
              Bonds, Series 1995A (MBIA Insured)   #5.70% Due 11/15/2025...           AAA  2021 @ 100 S.F.          496,050        
$   3,000,000 .............................................................                                    $  2,926,242       
</TABLE>


All of the Bonds in the portfolio are insured by one of the Preinsured Bond
Insurers as indicated in the Bond name. See "Unitholder
Explanations--Insurance on the Bonds in the Insured Trusts" . 

For an explanation of the footnotes used on this page, see "Notes to
Portfolios" . 



NEW JERSEY IM-IT TRUST

General. The New Jersey IM-IT Trust consists of 8 issues of Securities. One of
the Bonds in the New Jersey IM-IT Trust is a general obligation of the
governmental entity issuing it and is backed by the taxing power thereof. The
remaining issues are payable from the income of a specific project or
authority and are not supported by the issuer's power to levy taxes. These
issues are divided by purpose of issues (and percentage of principal amount to
total New Jersey IM-IT Trust) as follows: Health Care, 2 (21%); Retail
Electric/Gas, 2 (21%); Higher Education, 1 (17%); Transportation, 1 (16%);
General Obligations, 1 (13%) and Water and Sewer, 1 (12%). No Bond issue has
received a provisional rating. 

Risk Factors. As described above, the New Jersey IM-IT Trust consists of a
portfolio of Bonds. The Trust is therefore susceptible to political, economic
or regulatory factors affecting issuers of the Bonds. The following
information provides only a brief summary of some of the complex factors
affecting the financial situation in New Jersey (the "State" ) and is
derived from sources that are generally available to investors and is believed
to be accurate. It is based in part on information obtained from various State
and local agencies in New Jersey. No independent verification has been made of
any of the following information. 

New Jersey is the ninth largest state in population and the fifth smallest in
land area. With an average of 1,062 people per square mile, it is the most
densely populated of all the states. The state's economic base is diversified,
consisting of a variety of manufacturing, construction and service industries,
supplemented by rural areas with selective commercial agriculture.
Historically, New Jersey's average per capita income has been well above the
national average, and in 1993 the State ranked second among states in per
capita personal income ($26,967). 

The New Jersey Economic Policy Council, a statutory arm of the New Jersey
Department of Commerce and Economic Development, has reported in New Jersey
Economic Indicators, a monthly publication of the New Jersey Department of
Labor, Division of Labor Market and Demographic Research, that in 1988 and
1989 employment in New Jersey's manufacturing sector failed to benefit from
the export boom experienced by many Midwest states and the State's service
sectors, which had fueled the State's prosperity since 1982, lost momentum. In
the meantime, the prolonged fast growth in the State in the mid 1980s resulted
in a tight labor market situation, which has led to relatively high wages and
housing prices. This means that, while the incomes of New Jersey residents are
relatively high, the State's business sector has become more vulnerable to
competitive pressures. 

The onset of the national recession (which officially began in July 1990
according to the National Bureau of Economic Research) caused an acceleration
of New Jersey's job losses in construction and manufacturing. In addition, the
national recession caused an employment downturn in such previously growing
sectors as wholesale trade, retail trade, finance, utilities and trucking and
warehousing. Reflecting the downturn, the rate of unemployment in the State
rose from a low of 3.6% during the first quarter of 1989 to an estimated 5.7%
in September 1995, which is higher than the national average of 5.6% in
September 1995. Economic recovery is likely to be slow and uneven in New
Jersey, with unemployment receding at a correspondingly slow pace, due to the
fact that some sectors may lag due to continued excess capacity. In addition,
employers even in rebounding sectors can be expected to remain cautious about
hiring until they become convinced that improved business will be sustained.
Also, certain firms will continue to merge or downsize to increase
profitability. 

Debt Service. The primary method for State financing of capital projects is
through the sale of the general obligation bonds of the State. These bonds are
backed by the full faith and credit of the State tax revenues and certain
other fees are pledged to meet the principal and interest payments and if
provided, redemption premium payments, if any, required to repay the bonds. As
of June 30, 1993, there was a total authorized bond indebtedness of
approximately $8.98 billion, of which $3.6 billion was issued and outstanding,
$4.0 billion was retired (including bonds for which provision for payment has
been made through the sale and issuance of refunding bonds) and $1.38 billion
was unissued. The appropriation for the debt service obligation on such
outstanding indebtedness was $103.5 million for fiscal year 1994. 

New Jersey's Budget and Appropriation System. The State operates on a fiscal
year beginning July 1 and ending June 30. At the end of fiscal year 1989,
there was a surplus in the State's general fund (the fund into which all State
revenues not otherwise restricted by statute are deposited and from which
appropriations are made) of $411.2 million. At the end of fiscal year 1990,
there was a surplus in the general fund of $1 million. At the end of fiscal
year 1991, there was a surplus in the general fund of $1.4 million. New Jersey
closed its fiscal year 1992 with a surplus of $760.8 million. It is estimated
that New Jersey closed its fiscal year 1993 with a surplus of $937.4 million. 

In order to provide additional revenues to balance future budgets, to
redistribute school aid and to contain real property taxes, on June 27, 1990,
and July 12, 1990, Governor Florio signed into law legislation which was
estimated to raise approximately $2.8 billion in additional taxes (consisting
of $1.5 billion in sales and use taxes and $1.3 billion in income taxes), the
biggest tax hike in New Jersey history. There can be no assurance that
receipts and collections of such taxes will meet such estimates. 

The first part of the tax hike took effect on July 1, 1990, with the increase
in the State's sales and use tax rate from 6% to 7% and the elimination of
exemptions for certain products and services not previously subject to the
tax, such as telephone calls, paper products (which has since been
reinstated), soaps and detergents, janitorial services, alcoholic beverages
and cigarettes. At the time of enactment, it was projected that these taxes
would raise approximately $1.5 billion in additional revenue. Projections and
estimates of receipts from sales and use taxes, however, have been subject to
variance in recent fiscal years. 

The second part of the tax hike took effect on January 1, 1991, in the form of
an increased state income tax on individuals. At the time of enactment, it was
projected that this increase would raise approximately $1.3 billion in
additional income taxes to fund a new school aid formula, a new homestead
rebate program and state assumption of welfare and social services costs.
Projections and estimates of receipts from income taxes, however, have also
been subject to variance in recent fiscal years. Under the legislation, income
tax rates increased from their previous range of 2% to 3.5% to a new range of
2% to 7%, with the higher rates applying to married couples with incomes
exceeding $70,000 who file joint returns, and to individuals filing single
returns with incomes of more than $35,000. 

The Florio administration had contended that the income tax package will help
reduce local property tax increases by providing more state aid to
municipalities. Under the income tax legislation the State will assume
approximately $289 million in social services costs that previously were paid
by counties and municipalities and funded by property taxes. In addition,
under the new formula for funding school aid, an extra $1.1 billion was
proposed to be sent by the State to school districts beginning in 1991, thus
reducing the need for property tax increases to support education programs. 

Effective July 1, 1992, the State's sales and use tax rate decreased from 7%
to 6%. Effective January 1, 1994, an across-the-board 5% reduction in the
income tax rates was enacted and effective January 1, 1995 further reductions
ranging from 1% up to 10% in income tax rates took effect. Governor Whitman
recently signed into law further reductions up to 15% for some taxpayers
effective January 1, 1996, completing her campaign promise to reduce income
taxes by up to 30% for most taxpayers within three years.

On June 30, 1995, Governor Whitman signed the New Jersey Legislature's $16.0
billion budget for Fiscal Year 1996. The balanced budget, which includes $541
million in surplus, is $300 million more than the 1995 budget. Whether the
State can achieve a balanced budget depends on its ability to enact and
implement expenditure reductions and to collect the estimated tax revenues. 

Litigation. The State is a party in numerous legal proceedings pertaining to
matters incidental to the performance of routine governmental operations. Such
litigation includes, but is not limited to, claims asserted against the State
arising from alleged torts, alleged breaches of contracts, condemnation
proceedings and other alleged violations of State and Federal laws. Included
in the State's outstanding litigation are cases challenging the following: the
formula relating to State aid to public schools, the method by which the State
shares with its counties maintenance recoveries and costs for residents in
State institutions, unreasonably low Medicaid payment rates for long-term
facilities in New Jersey, the obligation of counties to maintain Medicaid or
Medicare eligible residents of institutions and facilities for the
developmentally disabled, taxes paid into the Spill Compensation Fund (a fund
established to provide money for use by the State to remediate hazardous waste
sites and to compensate other persons for damages incurred as a result of
hazardous waste discharge) based on Federal preemption, various provisions,
and the constitutionality of the Fair Automobile Insurance Reform Act of 1990,
the State's role in a consent order concerning the construction of a resource
facility in Passaic County, actions taken by the New Jersey Bureau of
Securities against an individual, the State's actions regarding alleged
chromium contamination of State-owned property in Hudson County, the issuance
of emergency redirection orders and a draft permit by the Department of
Environmental Protection and Energy, the adequacy of Medicaid reimbursement
for services rendered by doctors and dentists to Medicaid eligible children,
the Commissioner of Health's calculation of the hospital assessment required
by the Health Care Cost Reduction Act of 1991, refusal of the State to share
with Camden County federal funding the State recently received for
disproportionate share hospital payments made to county psychiatric
facilities, and the constitutionality of annual A-901 hazardous and solid
waste licensure renewal fees collected by the Department of Environmental
Protection and Energy. Adverse judgments in these and other matters could have
the potential for either a significant loss of revenue or a significant
unanticipated expenditure by the State. 

At any given time, there are various numbers of claims and cases pending
against the State, State agencies and employees seeking recovery of monetary
damages that are primarily paid out of the fund created pursuant to the New
Jersey Tort Claims Act. In addition, at any given time, there are various
numbers of contract claims against the State and State agencies seeking
recovery of monetary damages. The State is unable to estimate its exposure for
these claims. 

Debt Ratings. For many years, both Moody's Investors Service, Inc. and
Standard and Poor's Corporation rated New Jersey general obligation bonds 
"Aaa" and "AAA" , respectively. On July 3, 1991, however, Standard
and Poor's Corporation downgraded New Jersey general obligation bonds to 
"AA+." On June 4, 1992, Standard and Poor's Corporation placed New Jersey
general obligation bonds on CreditWatch with negative implications, citing as
its principal reason for its caution the unexpected denial by the federal
government of New Jersey's request for $450 million in retroactive Medicaid
payments for psychiatric hospitals. These funds were critical to closing a $1
billion gap in the State's $15 billion budget for fiscal year 1992 which ended
on June 30, 1992. Under New Jersey state law, the gap in the budget was
required to be closed before the new budget year began on July 1, 1992.
Standard and Poor's suggested the State could close fiscal 1992's budget gap
and help fill fiscal 1993's hole by a reversion of $700 million of pension
contributions to its general fund under a proposal to change the way the State
calculates its pension liability. 

On July 6, 1992, Standard and Poor's Corporation reaffirmed its "AA+" 
rating for New Jersey general obligation bonds and removed the debt from its
CreditWatch list, although it stated that New Jersey's long-term financial
outlook was negative. Standard and Poor's Corporation was concerned that the
State was entering fiscal 1993 with only a $26 million surplus and remained
concerned about whether the State economy would recover quickly enough to meet
lawmakers' revenue projections. It also remained concerned about the recent
federal ruling leaving in doubt how much the State was due in retroactive
Medicaid reimbursements and a ruling by a federal judge, now on appeal, of the
State's method for paying for uninsured hospital patients. However, on July
27, 1994, Standard and Poor's announced that it was changing the State's
outlook from negative to stable due to a brightening of the State's prospects
as a result of Governor Whitman's effort to trim spending and cut taxes,
coupled with an improving economy. Standard and Poor's reaffirmed its "
AA+" rating at the same time.

On August 24, 1992, Moody's Investors Service, Inc. downgraded New Jersey
general obligation bonds to "Aa1," stating that the reduction
reflected a developing pattern of reliance on nonrecurring measures to achieve
budgetary balance, four years of financial operations marked by revenue
shortfalls and operating deficits, and the likelihood that serious financial
pressures will persist. On August 5, 1994, Moody's reaffirmed its "Aa1" 
 rating, citing on the positive side New Jersey's broad-based economy, high
income levels, history of maintaining a positive financial position and
moderate (albeit rising) debt ratios, and on the negative side, a continued
reliance on one-time revenue and a dependence on pension-related savings to
achieve budgetary balance.

Tax Status. For a discussion of the Federal tax status of income earned on New
Jersey IM-IT Trust Units, see "Other Matters--Federal Tax Status" . 

In the opinion of Pitney, Hardin, Kipp & Szuch, special counsel to the Fund
for New Jersey tax matters, under existing law: 

(1)The New Jersey IM-IT Trust will be recognized as a trust and not an
association taxable as a corporation. The New Jersey IM-IT Trust will not be
subject to the New Jersey Corporation Business Tax or the New Jersey
Corporation Income Tax. 

(2)With respect to the non-corporate Unitholders who are residents of New
Jersey, the income of the New Jersey IM-IT Trust which is allocable to each
such Unitholder will be treated as the income of such Unitholder under the New
Jersey Gross Income Tax. Interest on the underlying Bonds which would be
exempt from New Jersey Gross Income Tax if directly received by such
Unitholder will retain its status as tax-exempt interest when received by the
New Jersey IM-IT Trust and distributed to such Unitholder. Any proceeds paid
under the insurance policy issued to the Trustee of the New Jersey IM-IT Trust
with respect to the Bonds or under individual policies obtained by issuers of
Bonds which represent maturing interest on defaulted obligations held by the
Trustee will be exempt from New Jersey Gross Income Tax if, and to the same
extent as, such interest would have been so exempt if paid by the issuer of
the defaulted obligations. 

(3)A non-corporate Unitholder will not be subject to the New Jersey Gross
Income Tax on any gain realized either when the New Jersey IM-IT Trust
disposes of a Bond (whether by sale, exchange, redemption, or payment at
maturity), when the Unitholder redeems or sells his Units or upon payment of
any proceeds under the insurance policy issued to the Trustee of the New
Jersey IM-IT Trust with respect to the Bonds or under individual policies
obtained by issuers of Bonds which represent maturing principal on defaulted
obligations held by the Trustee. Any loss realized on such disposition may not
be utilized to offset gains realized by such Unitholder on the disposition of
assets the gain on which is subject to the New Jersey Gross Income Tax. 

(4)Units of the New Jersey IM-IT Trust may be taxable on the death of a
Unitholder under the New Jersey Transfer Inheritance Tax Law or the New Jersey
Estate Tax Law. 

(5)If a Unitholder is a corporation subject to the New Jersey Corporation
Business Tax or New Jersey Corporation Income Tax, interest from the Bonds in
the New Jersey IM-IT Trust which is allocable to such corporation will be
includable in its entire net income for purposes of the New Jersey Corporation
Business Tax or New Jersey Corporation Income Tax, less any interest expense
incurred to carry such investment to the extent such interest expense has not
been deducted in computing Federal taxable income. Net gains derived by such
corporation on the disposition of the Bonds by the New Jersey IM-IT Trust or
on the disposition of its Units will be included in its entire net income for
purposes of the New Jersey Corporation Business Tax or New Jersey Corporation
Income Tax. Any proceeds paid under the insurance policy issued to the Trustee
of the New Jersey IM-IT Trust with respect to the Bonds or under individual
policies obtained by issuers of Bonds which represent maturing interest or
maturing principal on defaulted obligations held by the Trustee will be
included in its entire net income for purposes of the New Jersey Corporation
Business Tax or New Jersey Corporation Income Tax if, and to the same extent
as, such interest or proceeds would have been so included if paid by the
issuer of the defaulted obligations.

 



<TABLE>
<CAPTION>
                                                                                      Semi-     
Per Unit Information:                                                    Monthly      Annual
<S>                                                                     <C>          <C>     
Calculation of Estimated Net Annual Unit Income:                                                
 Estimated Annual Interest Income per Unit............................. $     54.33  $    54.33 
 Less: Estimated Annual Expense per Unit <F1>.......................... $      2.31  $     1.93 
 Less: Annual Premium on Portfolio Insurance per Unit..................          --          -- 
 Estimated Net Annual Interest Income per Unit......................... $     52.02  $    52.40 
Calculation of Estimated Interest Earnings per Unit:                                            
 Estimated Net Annual Interest Income per Unit......................... $     52.02  $    52.40 
 Divided by 12 and 2, respectively..................................... $      4.34  $    26.20 
Estimated Daily Rate of Net Interest Accrual per Unit.................. $    .14450  $   .14555 
Estimated Current Return Based on Public Offering Price <F2><F3><F4>...        5.20%       5.24%
Estimated Long-Term Return <F2><F3><F4>................................        5.21%       5.25%
Estimated Initial Monthly Distribution (December 1995)................. $      6.07             
Estimated Initial Semi-annual Distribution (January 1996)..............              $    10.48 
Estimated Normal Distribution per Unit <F4>............................ $      4.34  $    26.20 
</TABLE>



<TABLE>
<CAPTION>
<S>                             <C>                                                                   
Trustee's Annual Fee........... $.91 and $.51 per $1,000 principal amount of Bonds, respectively, for those portions of the    
                                New Jersey IM-IT Trust under the monthly and semi-annual distribution plans                    
Record and Computation Dates... FIRST day of the month as follows: monthly--each month; semi-annual--January and July          
Distribution Dates............. FIFTEENTH day of the month as follows: monthly--each month; semi-annual--                      
                                January and July commencing December 15, 1995                                                  




<FN>
<F1>Excluding insurance costs. The Estimated Annual Expenses are expected to
fluctuate periodically (see "Trust Administration--Fund Administration and
Expenses--Miscellaneous Expenses" ).

<F2>The Estimated Current Returns and Estimated Long-Term Returns are increased
for transactions entitled to a reduced sales charge. See "Unitholder
Explanations--Public Offering--General" .

<F3>The Estimated Current Returns are calculated by dividing the Estimated Net
Annual Interest Income per Unit by the Public Offering Price. The Estimated
Net Annual Interest Income per Unit will vary with changes in fees and
expenses of the Trustee and the Evaluator and with the principal prepayment,
redemption, maturity, exchange or sale of Securities while the Public Offering
Price will vary with changes in the offering price of the underlying
Securities; therefore, there is no assurance that the present Estimated
Current Returns indicated above will be realized in the future. The Estimated
Long-Term Returns are calculated using a formula which (1) takes into
consideration, and determines and factors in the relative weightings of, the
market values, yields (which takes into account the amortization of premiums
and the accretion of discounts) and estimated retirements of all of the
Securities in the Trust and (2) takes into account the expenses and sales
charge associated with each Trust Unit. Since the market values and estimated
retirements of the Securities and the expenses of the Trust will change, there
is no assurance that the present Estimated Long-Term Returns as indicated
above will be realized in the future. The Estimated Current Returns and
Estimated Long-Term Returns are expected to differ because the calculation of
the Estimated Long-Term Return reflects the estimated date and amount of
principal returned while the Estimated Current Return calculation includes
only net annual interest income and Public Offering Price.

<F4>These figures are based on estimated per Unit cash flows. Estimated cash flows
will vary with changes in fees and expenses, with changes in current interest
rates and with the principal prepayment, redemption, maturity, call, exchange
or sale of the underlying Securities. The estimated cash flows for this Series
are set forth under "Estimated Cash Flows to Unitholders" .
</TABLE>





<TABLE>
NEW JERSEY INSURED MUNICIPALS INCOME TRUST
SERIES 106 (186TH INSURED MULTI-SERIES)
PORTFOLIO As of October 16, 1995
<CAPTION>
                                                                                                              Offering             
                                                                                                              Price To New         
Aggregate     Name of Issuer, Title, Interest Rate and Maturity Date of                   Redemption          Jersey IM-IT         
              either Bonds Deposited or Bonds Contracted for<F1><F5>          Rating<F2>  Feature<F3>         Trust<F4>            
<S>           <C>                                                          <C>            <C>                 <C>             
$    100,000  Town of West New York, Municipal Utilities Authority                                                                 
              (Hudson County, New Jersey) Sewer Revenue and Refunding                                                              
              Capital Appreciation Bonds, Series 1991 (FGIC Insured)                                                               
              #0.00% Due 12/15/2019.......................................           AAA                      $     24,933  <F6>
     500,000  New Jersey Educational Facilities Authority, Revenue Bonds,                                                          
              Rowan College of New Jersey Issue, Series 1993A   (AMBAC                    2003 @ 102                               
              Indemnity Insured)   #5.75% Due 7/1/2023....................           AAA  2014 @ 100 S.F.           502,500        
     370,000  New Jersey Economic Development Authority, Water Facilities                                                          
              Revenue Refunding Bonds (Hackensack Water Company Project)                                                           
              Series 1994A (MBIA Insured)   #5.80% Due 3/1/2024...........           AAA  2004 @ 102                373,249        
     455,000  New Jersey Health Care Facilities Financing Authority,                                                               
              Revenue Bonds (Newark Beth Israel Medical Center Issue)                     2004 @ 102                               
              Series 1994 (FSA Insured)   #6.00% Due 7/1/2024.............           AAA  2017 @ 100 S.F.           464,404        
     175,000  New Jersey Health Care Facilities Financing Authority,                                                               
              Revenue Bonds (Somerset Medical Center Issue) Series 1994A                  2004 @ 102                               
               (FGIC Insured)   #5.20% Due 7/1/2024.......................           AAA  2015 @ 100 S.F.           162,409        
     400,000  Essex County Improvement Authority (Essex County, New                                                                
              Jersey) County of Essex General Obligation Lease Revenue                                                             
              Bonds (Gibraltar Building Project) Series 1995 (MBIA                        2005 @ 102                               
              Insured)   5.95% Due 12/1/2025..............................           AAA  2016 @ 100 S.F.           408,880        
     500,000  Port Authority of New York and New Jersey, Consolidated                                                              
              Revenue Bonds, One Hundredth Series (MBIA Insured)   #5.75%                 2005 @ 101                               
              Due 6/15/2030...............................................           AAA  2021 @ 100 S.F.           502,500        
     545,000  Pollution Control Financing Authority of Salem County (New                                                           
              Jersey) Pollution Control Revenue Refunding Bonds (Public                                                            
              Service Electric and Gas Company Project) Series 1993                                                                
              (MBIA Insured)   5.55% Due 11/1/2033........................           AAA  2003 @ 102                526,356        
$   3,045,000                                                                                                 $   2,965,231        
</TABLE>




All of the Bonds in the portfolio are insured by one of the Preinsured Bond
Insurers as indicated in the Bond name. See "Unitholder
Explanations--Insurance on the Bonds in the Insured Trusts" . 

For an explanation of the footnotes used on this page, see "Notes to
Portfolios" . 



PENNSYLVANIA IM-IT TRUST  

General. The Pennsylvania IM-IT Trust consists of 8 issues of Securities. Four
of the Bonds in the Pennsylvania IM-IT Trust are general obligations of the
governmental entities issuing them and are backed by the taxing power thereof.
The remaining issues are payable from the income of a specific project or
authority and are not supported by the issuer's power to levy taxes. These
issues are divided by purpose of issues (and percentage of principal amount to
total Pennsylvania IM-IT Trust) as follows: General Obligations, 4 (48%);
Retail Electric/Gas, 1 (17%); Higher Education, 1 (15%); General Purpose, 1
(14%) and Health Care, 1 (6%). No Bond issue has received a provisional rating.

Risk Factors. Investors should be aware of certain factors that might affect
the financial conditions of the Commonwealth of Pennsylvania. Pennsylvania
historically has been identified as a heavy industry state although that
reputation has changed recently as the industrial composition of the
Commonwealth diversified when the coal, steel and railroad industries began to
decline. A more diversified economy was necessary as the traditionally strong
industries in the Commonwealth declined due to a long-term shift in jobs,
investment and workers away from the northeast part of the nation. The major
sources of growth in Pennsylvania are in the service sector, including trade,
medical and the health services, education and financial institutions.
Pennsylvania's agricultural industries are also an important component of the
Commonwealth's economic structure, accounting for more than $3.6 billion in
crop and livestock products annually, while agribusiness and food related
industries support $39 billion in economic activity annually. 

Non-agricultural employment in the Commonwealth declined by 5.1 percent during
the recessionary period from 1980 to 1983. In 1984, the declining trend was
reversed as employment grew by 2.9 percent over 1983 levels. From 1983 to
1990, Commonwealth employment continued to grow each year, increasing an
additional 14.3 percent. For the three years ended 1993, unemployment in the
Commonwealth declined 1.2 percent. 

Back to back recessions in the early 1980s reduced the manufacturing sector's
employment levels moderately during 1980 and 1981, sharply during 1982, and
even further in 1983. Non-manufacturing employment has increased steadily
since 1980 to its 1993 level of 81.6 percent of total Commonwealth employment.
Consequently, manufacturing employment constitutes a diminished share of total
employment within the Commonwealth. Manufacturing, contributing 18.4 percent
of 1993 non-agricultural employment, has fallen behind both the services
sector and the trade sector as the largest single source of employment within
the Commonwealth. In 1993 the services sector accounted for 29.9 percent of
all non-agricultural employment while the trade sector accounted for 22.4
percent. 

From 1983 to 1989, Pennsylvania's annual average unemployment rate dropped
from 11.8 percent to 4.5 percent, falling below the national rate in 1986 for
the first time in over a decade. Pennsylvania's annual average unemployment
rate remained below the national average from 1986 until 1990. Slower economic
growth caused the unemployment rate in the Commonwealth to rise to 6.9 percent
in 1991 and 7.5 percent in 1992. The resumption of faster economic growth
resulted in a decrease in the Commonwealth's unemployment rate to 7.1 percent
in 1993. As of March 1995, the seasonally adjusted unemployment rate for the
Commonwealth was 6.0 percent compared to 5.5 percent for the United States. 

The five year period from fiscal 1990 through fiscal 1994 was marked by public
health and welfare costs growing at a rate double the growth rate for all the
state expenditures. Rising caseloads, increased utilization of services and
rising prices joined to produce the rapid rise of public health and welfare
costs at a time when a national recession caused tax revenues to stagnate and
even decline. During the period from fiscal 1989 through fiscal 1993, public
health and welfare costs rose by an average annual rate of 9.4 percent while
tax revenues were growing at an average annual rate of 5.8 percent.
Consequently, spending on other budget programs was restrained to a growth
rate below 4.7 percent and sources of revenues other than taxes became larger
components of fund revenues. Among those sources are transfers from other
funds and hospital and nursing home pooling of contributions to use as federal
matching funds. 

Tax revenues declined in fiscal 1991 as a result of the recession in the
economy. A $2.7 billion tax increase enacted for fiscal 1992 brought financial
stability to the General Fund. That tax increase included several taxes with
retroactive effective dates which generated some one-time revenues during
fiscal 1992. The absence of those revenues in fiscal 1993 contributed to the
decline in tax revenues shown for fiscal 1993. Fiscal 1994 revenues increased
4.1 percent, but a decline in other revenues caused by the end of medical
assistance pooled financing in fiscal 1993 held total revenues to a 1.8
percent gain. Expenditures for fiscal 1994 rose by 4.3 percent.

It should be noted that the creditworthiness of obligations issued by local
Pennsylvania issuers may be unrelated to the creditworthiness of obligations
issued by the Commonwealth of Pennsylvania, and there is no obligation on the
part of the Commonwealth to make payment on such local obligations in the
event of default. 

Financial information for the principal operating funds of the Commonwealth is
maintained on a budgetary basis of accounting. A budgetary basis of accounting
is used for the purpose of ensuring compliance with the enacted operating
budget and is governed by applicable statutes of the Commonwealth and by
administrative procedures. The Commonwealth also prepares annual financial
statements in accordance with generally accepted accounting principles ("
GAAP" ). The budgetary basis financial information maintained by the
Commonwealth to monitor and enforce budgetary control is adjusted at fiscal
year-end to reflect appropriate accruals for financial reporting in conformity
with GAAP. 

Fiscal 1992 Financial Results. GAAP Basis: During fiscal 1992 the General Fund
reported a $1.1 billion operating surplus. This operating surplus was achieved
through legislated tax rate increases and tax base broadening measures enacted
in August 1991 and by controlling expenditures through numerous cost reduction
measures implemented throughout the fiscal year. As a result of the fiscal
1992 operating surplus, the fund balance increased to $87.5 million and the
unreserved-undesignated deficit dropped to $138.6 million from its fiscal 1991
level of $1,146.2 million. 

Budgetary Basis: Total revenues for the fiscal year were $14,516.8 million, a
$2,654.5 million increase over cash revenues during fiscal 1991. Largely due
to the tax revisions enacted for the budget, corporate tax receipts totalled
$3,761.2 million, up from $2,656.3 million in fiscal 1991, sales tax receipts
increased by $302 million to $4,499.7 million, and personal income tax
receipts totalled $4,807.4 million, an increase of $1,443.8 million over
receipts in fiscal 1991. 

Spending increases in the fiscal 1992 budget were largely accounted for by
increases for education, social services and corrections programs.
Commonwealth funds for the support of public schools were increased by 9.8
percent to provide a $438 million increase to $4.9 billion for fiscal 1992.
Child welfare appropriations supporting county operated child welfare programs
were increased $67 million, more than 31.5 percent over fiscal 1991. Other
social service areas such as medical and cash assistance also received
significant funding increases as costs rose quickly as a result of the
economic recession and high inflation rates of medical care costs. The costs
of corrections programs, reflecting the marked increase in the prisoner
population, increased by 12 percent. Economic development efforts, largely
funded from bond proceeds in fiscal 1991, were continued with General Fund
appropriations for fiscal 1992. 

The budget included the use of several Medicaid pooled financing transactions.
These pooling transactions replaced $135 million of Commonwealth funds,
allowing total spending under the budget to increase by an equal amount. 

Fiscal 1993 Financial Results. GAAP Basis: The fund balance of the General
Fund increased by $611.4 million during the fiscal year, led by an increase in
the unreserved balance of $576.8 million over the prior fiscal year balance.
At June 30, 1993, the fund balance totalled $698.9 and the
unreserved/undesignated balance totalled $64.4 million. The increase in the
fund balance and a return to a positive unreserved-undesignated balance
provided indication of a continuing recovery of the Commonwealth's financial
condition. 

Budgetary Basis: The 1993 fiscal year closed with revenues higher than
anticipated and expenditures about as projected, resulting in an ending
unappropriated balance surplus (prior to the ten percent transfer to the Tax
Stabilization Reserve Fund) of $242.3 million, slightly higher than estimated.
Cash revenues were $41.5 million above the budget estimate and totalled
$14.633 billion representing less than a one percent increase over revenues
for the 1992 fiscal year. A reduction in the personal income tax rate in July
1992 and the one-time receipt of revenues from retroactive corporate tax
increases in fiscal 1992 were responsible, in part, for the low revenue growth
in fiscal 1993. 

Appropriations less lapses totalled $13.870 billion representing a 1.1 percent
increase over expenditures during fiscal 1992. The low growth in spending is a
consequence of a low rate of revenue growth, significant one-time expenses
during fiscal 1992, increased tax refund reserves to cushion against adverse
decisions on pending litigations, and the receipt of federal funds for
expenditures previously paid out of Commonwealth funds. 

By state statute, ten percent of the budgetary basis unappropriated surplus at
the end of a fiscal year is to be transferred to the Tax Stabilization Reserve
Fund. The transfer for the fiscal 1993 balance was $24.2 million. The
remaining unappropriated surplus of $218.0 million was carried forward into
the 1994 fiscal year. 

Fiscal 1994 Financial Results. GAAP Basis: The fund balance increased $194.0
million due largely to an increased reserve for encumbrances and an increase
in other designated funds. The unreserved-undesignated balance increased by
$14.8 million to $72.2 million. Revenues and other sources increased by 1.8
percent over the prior fiscal year while expenditures and other uses increased
by 4.3 percent. Consequently, the operating surplus declined to $179.4 million
for fiscal 1994 from $686.3 million for fiscal 1993. 

Budgetary Basis: Commonwealth revenues during the fiscal year totalled
$15,210.7 million, $38.6 million above the fiscal year estimate, and 3.9
percent over Commonwealth revenues during the previous fiscal year. The sales
tax was an important contributor to the higher than estimated revenues.
Collections from the sales tax were $5.124 billion, a 6.1 percent increase
from the prior fiscal year and $81.3 million above estimate. The strength of
collections from the sales tax offset the lower than budgeted performance of
the personal income tax which ended the fiscal year $74.4 million below
estimate. The shortfall in the personal income tax was largely due to
shortfalls in income not subject to withholding such as interest, dividends
and other income. Tax refunds in fiscal 1994 were reduced substantially below
the $530 million amount provided in fiscal 1993. The higher fiscal 1993 amount
and the reduced fiscal 1994 amount occurred because reserves of approximately
$160 million were added to fiscal 1993 tax refunds to cover potential payments
if the Commonwealth lost litigation known as Philadelphia Suburban Corp v.
Commonwealth. Those reserves were carried into fiscal 1994 until the
litigation was decided in the Commonwealth's favor in December 1993 and $147.3
million of reserves for tax refunds were released.

Expenditures, excluding pooled financing expenditures and net of all fiscal
1994 appropriation lapses, totalled $14,934.4 million representing a 7.2
percent increase over fiscal 1993 expenditures. Medical assistance and
corrections spending contributed to the rate of spending growth for the fiscal
year.

The Commonwealth maintained an operating balance on a budgetary basis for
fiscal 1994 producing a fiscal year ending unappropriated surplus of $335.8
million. By state statute, ten percent ($33.6 million) of that surplus
transferred to the Tax Stabilization Reserve Fund and the remaining balance
was carried over into the fiscal 1995 fiscal year. The balance in the Tax
Stabilization Reserve Fund as of March 31, 1995 was $65.3 million.

Fiscal 1995 Budget. The approved fiscal 1995 budget provided for $15,665.7
million of appropriations from Commonwealth funds, an increase of 4.0 percent
over appropriations, including supplemental appropriations, for fiscal 1994.
Medical assistance expenditures represent the largest single increase in the
budget ($221 million) representing a nine percent increase over the prior
fiscal year. The budget includes a reform of the state-funded public
assistance program that added certain categories of eligibility to the program
but also limited the availability of such assistance to other eligible
persons. Education subsidies to local school districts were increased by
$132.2 million to continue the increased funding for the poorest school
districts in the state.

Several tax reductions were enacted with the fiscal 1995 budget. Low income
working families will benefit from an increase to the dependent exemption to
$3,000 from $1,500 for the first dependent and from $1,000 for all additional
dependents. A reduction to the corporate net income tax rate from 12.25
percent to 9.99 percent to be phased in over a period of four years was
enacted. A net operating loss provision has been added to the corporate net
income tax and will be phased in over three years with an annual $500,000 cap
on losses used to offset profits. Several other tax changes to the sales tax,
the inheritance tax and the capital stock and franchise tax also were enacted.
Estimated commonwealth revenue reductions from these tax cuts have been raised
from $166.4 million to $173.4 million based on upward revised estimates of
commonwealth revenues for the fiscal 1995 to 6.3 percent, excluding the effect
of the fiscal 1995 tax reductions, and is largely due to actual and
anticipated higher collections of the corporate net income tax, the sales and
use tax and miscellaneous collections.

After a review of the fiscal 1994 budget in January 1995, $64.9 million of
additional appropriation needs were identified for the fiscal year. Of this
amount, the largest are for medical assistance ($21.8 million) and general
assistance cash grants ($10.3 million). The balance of the additional
appropriation needs are for other public welfare programs, educational
subsidies and office relocation costs due to a fire. The supplemental
appropriations requested are proposed to be funded from appropriation lapses
estimated to total $172 million for the fiscal year.

With the revised estimates for revenues, appropriations and lapses for the
1994 fiscal year, an unappropriated balance prior to transfers to the Tax
Stabilization Reserve Fund of $395.5 million is projected, an increase from
the $335.8 million fiscal year 1993 ending balance (prior to transfers).

Fiscal 1996 Budget. The fiscal 1996 budget was approved by the Governor on
June 30, 1995. The budget includes spending growth of 2.7%. It includes a
reduction of the Corporate Net Income Tax from 10.99% to 9.99% retroactive to
January 1, 1995. The budget includes a proportionate increase in funds for
public safety and education and a proportionate decrease in funds for welfare.

All outstanding general obligation bonds of the Commonwealth are rated AA- by
S&P and A1 by Moody's. 

Any explanation concerning the significance of such ratings must be obtained
from the rating agencies. There is no assurance that any ratings will continue
for any period of time or that they will not be revised or withdrawn. 

The City of Philadelphia ("Philadelphia" ) is the largest city in the
Commonwealth, with an estimated population of 1,585,577 according to the 1990
Census. Philadelphia functions both as a city of the first class and a county
for the purpose of administering various governmental programs. 

For the fiscal year ending June 30, 1991, Philadelphia experienced a
cumulative General Fund balance deficit of $153.5 million. The audit findings
for the fiscal year ending June 30, 1992, placed the Cumulative General Fund
balance deficit at $224.9. 

Legislation providing for the establishment of the Pennsylvania
Intergovernmental Cooperation Authority ("PICA" ) to assist first class
cities in remedying fiscal emergencies was enacted by the General Assembly and
approved by the Governor in June, 1991. PICA is designed to provide assistance
through the issuance of funding debt to liquidate budget deficits and to make
factual findings and recommendations to the assisted city concerning its
budgetary and fiscal affairs. An intergovernmental cooperation agreement
between Philadelphia and PICA was approved by City Council on January 3, 1992,
and approved by the PICA Board and signed by the Mayor on January 8, 1992. At
this time, Philadelphia is operating under a five year fiscal plan approved by
PICA on April 17, 1995 in which Philadelphia projects a balanced budget in
each of the five years (fiscal years 1996 through 2000) covered by the plan. 

In June 1992, PICA issued $474,555,000 of its Special Tax Revenue Bonds to
provide financial assistance to Philadelphia and to liquidate the cumulative
General Fund balance deficit. PICA issued $643,430,000 in July 1993 and
$178,675,000 in August 1993 of Special Tax Revenue Bonds to refund certain
general obligation bonds of the City and to fund additional capital projects.
In December 1994, PICA issued $122,020,000 of Special Tax Revenue Bonds to
fund additional capital projects.

As of the date hereof, the ratings on the City's long-term obligations
supported by payments from the City's General Fund are rated Baa by Moody's
and BBB- by S&P. Any explanation concerning the significance of such ratings
must be obtained from the rating agencies. There is no assurance that any
ratings will continue for any period of time or that they will not be revised
or withdrawn. 

The foregoing information constitutes only a brief summary of some of the
financial difficulties which may impact certain issuers of bonds and does not
purport to be a complete or exhaustive description of all adverse conditions
to which the issuers of the Bonds in the Pennsylvania IM-IT Trust are subject.
Additionally, many factors including national economic, social and
environmental policies and conditions, which are not within the control of the
issuers of Bonds, could have an adverse impact on the financial condition of
the State and various agencies and political subdivisions located in the
State. The Sponsor is unable to predict whether or to what extent such factors
or other factors may affect the issuers of Bonds, the market value or
marketability of the Bonds or the ability of the respective issuers of the
Bonds acquired by the Pennsylvania IM-IT Trust to pay interest on or principal
of the Bonds. 

Tax Status. For a discussion of the Federal tax status of income earned on
Pennsylvania IM-IT Trust Units, see "Other Matters--Federal Tax Status" . 

In the opinion of Saul, Ewing, Remick & Saul, counsel to the Fund for
Pennsylvania tax matters, under existing law: 

(1)Units evidencing fractional undivided interest in the Pennsylvania IM-IT
Trust, which are represented by obligations issued by the Commonwealth of
Pennsylvania, any public authority, commission, board or other agency created
by the Commonwealth of Pennsylvania, any political subdivision of the
Commonwealth of Pennsylvania or any public authority created by any such
political subdivision are not taxable under any of the personal property taxes
presently in effect in Pennsylvania; 

(2)distributions of interest income to Unitholders that would not be taxable
it received directly by a Pennsylvania resident are not subject to personal
income tax under the Pennsylvania Tax Reform Code of 1971; nor will such
interest be taxable under the Philadelphia School District Investment Income
Tax imposed on Philadelphia resident individuals; 

(3)a Unitholder will have a taxable event under the Pennsylvania state and
local income taxes referred to in the preceding paragraph upon the redemption
or sale of his Units. Units will be taxable under the Pennsylvania inheritance
and estate taxes;

(4)a Unitholder which is a corporation will have a taxable event under the
Pennsylvania Corporate Net Income Tax when it redeems or sells its Units.
Interest income distributed to Unitholders which are corporations is not
subject to Pennsylvania Corporate Net Income Tax or Mutual Thrift Institutions
Tax. However, banks, title insurance companies and trust companies may be
required to take the value of the Units into account in determining the
taxable value of their shares subject to the Shares Tax; 

(5)under Act No. 68 of December 3, 1993, gains derived by the Fund from the
sale, exchange or other disposition of Bonds may be subject to Pennsylvania
personal or corporate income taxes. Those gains which are distributed by the
Fund to Unitholders who are individuals may be subject to Pennsylvania
Personal Income Tax. For Unitholders which are corporations, the distributed
gains may be subject to Corporate Net Income Tax or Mutual Thrift Institutions
Tax. Gains which are not distributed by the Fund may nevertheless be taxable
to Unitholders if derived by the Fund from the sale, exchange or other
disposition of Bonds issued on or after February 1, 1994. Gains which are not
distributed by the Fund will remain nontaxable to Unitholders if derived by
the Fund from the sale, exchange or other disposition of Bonds issued prior to
February 1, 1994;

(6)any proceeds paid under insurance policies issued to the Trustee or
obtained by the issuers of the Bonds with respect to the Bonds which represent
maturing interest on defaulted obligations held by the Trustee will be
excludable from Pennsylvania gross income if, and to the same extent as, such
interest would have been so excludable if paid by the issuer of the defaulted
obligations; and

(7)the Fund is not taxable as a corporation under Pennsylvania tax laws
applicable to corporations. 

On December 3, 1993, changes to Pennsylvania laws affecting taxation of income
and gains from the sale of Commonwealth of Pennsylvania and local obligations
were enacted. Among these changes was the repeal of the exemption from tax of
gains realized upon the sale or other disposition of such obligations. The
Pennsylvania Department of Revenue has issued proposed regulations concerning
these changes. The opinions expressed above are based on our analysis of the
law and proposed regulations but are subject to modification upon review of
final regulations or other guidance that may be issued by the Department of
Revenue or future court decisions. 

In rendering its opinion, Saul, Ewing, Remick & Saul has not, for timing
reasons, made an independent review of proceedings related to the issuance of
the Bonds. It has relied on Van Kampen American Capital Distributors, Inc. for
assurance that the Bonds have been issued by the Commonwealth of Pennsylvania
or by or on behalf of municipalities or other governmental agencies within the
Commonwealth.

 



<TABLE>
<CAPTION>
                                                                                          Semi-     
Per Unit Information:                                                        Monthly      Annual  
<S>                                                                         <C>          <C>    
Calculation of Estimated Net Annual Unit Income <F1>:                                               
 Estimated Annual Interest Income per Unit................................. $     54.30  $    54.30 
 Less: Estimated Annual Expense per Unit <F2>.............................. $      1.86  $     1.50 
 Less: Annual Premium on Portfolio Insurance per Unit......................          --          -- 
 Estimated Net Annual Interest Income per Unit............................. $     52.44  $    52.80 
Calculation of Estimated Interest Earnings per Unit:                                                
 Estimated Net Annual Interest Income per Unit............................. $     52.44  $    52.80 
 Divided by 12 and 2, respectively......................................... $      4.37  $    26.40 
Estimated Daily Rate of Net Interest Accrual per Unit...................... $    .14565  $   .14666 
Estimated Current Return Based on Public Offering Price <F1><F3><F4><F5>...        5.24%       5.28%
Estimated Long-Term Return <F3><F4><F5>....................................        5.20%       5.24%
Estimated Initial Monthly Distribution (December 1995)..................... $      6.12             
Estimated Initial Semi-annual Distribution (January 1996)..................              $    10.56 
Estimated Normal Distribution per Unit <F5>................................ $      4.37  $    26.40 
</TABLE>



<TABLE>
<CAPTION>
<S>                             <C>                                                                        
Trustee's Annual Fee <F1>...... $.91 and $.51 per $1,000 principal amount of Bonds, respectively, for those portions of the    
                                Pennsylvania IM-IT Trust under the monthly and semi-annual distribution plans                  
Record and Computation Dates... FIRST day of the month as follows: monthly--each month; semi-annual--January and July          
Distribution Dates............. FIFTEENTH day of the month as follows: monthly--each month; semi-annual--                      
                                January and July commencing December 15, 1995                                                  


<FN>
<F1>During the first year the Trustee will reduce its fee by approximately $.50
per Unit (which amount is the estimated interest to be earned per Unit prior
to the expected delivery dates for the "when, as and if issued" Bonds
included in this Trust). Should such estimated interest exceed such amount,
the Trustee will reduce its fee up to its annual fee. After the first year,
the Trustee's fee will be that amount indicated above. Estimated Annual
Interest Income per Unit will be increased to $54.80. Estimated Annual Expense
per Unit (excluding insurance) will be increased to $2.36 and $2.00 under the
monthly and semi-annual distribution plans, respectively; and Estimated Net
Annual Interest Income per Unit will remain the same as shown. See "
Estimated Current Returns and Estimated Long-Term Returns." 

<F2>Excluding insurance costs. The Estimated Annual Expenses are expected to
fluctuate periodically (see "Trust Administration--Fund Administration and
Expenses--Miscellaneous Expenses" ).

<F3>The Estimated Current Returns and Estimated Long-Term Returns are increased
for transactions entitled to a reduced sales charge. See "Unitholder
Explanations--Public Offering--General" .

<F4>The Estimated Current Returns are calculated by dividing the Estimated Net
Annual Interest Income per Unit by the Public Offering Price. The Estimated
Net Annual Interest Income per Unit will vary with changes in fees and
expenses of the Trustee and the Evaluator and with the principal prepayment,
redemption, maturity, exchange or sale of Securities while the Public Offering
Price will vary with changes in the offering price of the underlying
Securities; therefore, there is no assurance that the present Estimated
Current Returns indicated above will be realized in the future. The Estimated
Long-Term Returns are calculated using a formula which (1) takes into
consideration, and determines and factors in the relative weightings of, the
market values, yields (which takes into account the amortization of premiums
and the accretion of discounts) and estimated retirements of all of the
Securities in the Trust and (2) takes into account the expenses and sales
charge associated with each Trust Unit. Since the market values and estimated
retirements of the Securities and the expenses of the Trust will change, there
is no assurance that the present Estimated Long-Term Returns as indicated
above will be realized in the future. The Estimated Current Returns and
Estimated Long-Term Returns are expected to differ because the calculation of
the Estimated Long-Term Return reflects the estimated date and amount of
principal returned while the Estimated Current Return calculation includes
only net annual interest income and Public Offering Price.

<F5>These figures are based on estimated per Unit cash flows. Estimated cash flows
will vary with changes in fees and expenses, with changes in current interest
rates and with the principal prepayment, redemption, maturity, call, exchange
or sale of the underlying Securities. The estimated cash flows for this Series
are set forth under "Estimated Cash Flows to Unitholders" .
</TABLE>





<TABLE>
PENNSYLVANIA INSURED MUNICIPALS INCOME TRUST
SERIES 208 (186TH INSURED MULTI-SERIES)
PORTFOLIO As of October 16, 1995
<CAPTION>
                                                                                                               Offering            
                                                                                                               Price To            
                                                                                                               Pennsylvania        
Aggregate     Name of Issuer, Title, Interest Rate and Maturity Date of                    Redemption           IM-IT              
              either Bonds Deposited or Bonds Contracted for<F1><F5>           Rating<F2>  Feature<F3>         Trust<F4>           
<S>           <C>                                                           <C>            <C>                 <C>             
$    100,000  Hazleton Area School District, Luzerne, Carbon and Schuykill                                                         
              Counties, Pennsylvania, Unlimited Tax-General Obligation                                                             
              Bonds, Series 1995B (FGIC Insured)   #0.00% Due 3/1/2020.....           AAA                      $      23,780 <F6>
     505,000  County of Berks, Pennsylvania, Unlimited Tax-General                                                                 
              Obligation Bonds, Series 1995 (FGIC Insured)   #5.90% Due                    2005 @ 100                              
              11/15/2021...................................................           AAA  2019 @ 100 S.F.           509,399       
     400,000  Washington County Authority (Washington County,                                                                      
              Pennsylvania) Guaranteed Lease Revenue Refunding Bonds,                      2003 @ 100                              
              Series 1993A (FGIC Insured)   #5.625% Due 6/1/2022...........           AAA  2014 @ 100 S.F.           392,536       
     455,000  Delaware County Authority (Commonwealth of Pennsylvania)                                                             
              University Revenue Bonds (Villanova University Project)                      2003 @ 102                              
              Series 1993 (MBIA Insured)   #5.50% Due 8/1/2023.............           AAA  2014 @ 100 S.F.           442,765       
     400,000  Abington School District, Montgomery County, Pennsylvania,                                                           
              General Obligation Bonds, Series 1995A (FGIC Insured)**                      2005 @ 100                              
              #5.75% Due 5/15/2025.........................................           AAA  2021 @ 100 S.F.           399,164       
     190,000  Lehigh County General Purpose Authority, Pennsylvania,                                                               
              Hospital Revenue Bonds (Lehigh Valley Hospital, Inc.) Series                 2004 @ 102                              
              1994A (MBIA Insured)   #6.00% Due 7/1/2025...................           AAA  2023 @ 100 S.F.           193,173       
     400,000  School District of Philadelphia, Pennsylvania, Unlimited                                                             
              Tax-General Obligation Bonds, Series 1995B (AMBAC Indemnity                  2005 @ 101                              
              Insured)**   #5.50% Due 9/1/2025.............................           AAA  2019 @ 100 S.F.           388,884       
     500,000  City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds,                 2003 @ 102                              
              Fourteenth Series (CapMAC Insured)   #6.375% Due 7/1/2026....           AAA  2015 @ 100 S.F.           524,240       
$   2,950,000                                                                                                  $   2,873,941       
</TABLE>


All of the Bonds in the portfolio are insured by one of the Preinsured Bond
Insurers as indicated in the Bond name. See "Unitholder
Explanations--Insurance on the Bonds in the Insured Trusts" . 

For an explanation of the footnotes used on this page, see "Notes to
Portfolios" . 
    

   
As of the Date of Deposit: October 16, 1995

(1)All Securities are represented by "regular way" or "when
issued" contracts for the performance of which an irrevocable letter of
credit, obtained from an affiliate of the Trustee, has been deposited with the
Trustee. At the Date of Deposit, Securities may have been delivered to the
Sponsor pursuant to certain of these contracts; the Sponsor has assigned to
the Trustee all of its right, title and interest in and to such Securities.
Contracts to acquire Securities were entered into during the period from
September 28, 1995 to October 13, 1995. These Securities have expected
settlement dates ranging from October 16, 1995 to October 31, 1995 (see "
Unitholder Explanations" ).
    
(2)All ratings are by Standard & Poor's unless otherwise indicated. "*" 
 indicates that the rating of the Bond is by Moody's Investors Service, Inc.
The ratings represent the latest published ratings by the respective ratings
agency or, if not published, represent private letter ratings or those ratings
expected to be published by the respective ratings agency. "Y" 
indicates that such rating is contingent upon physical receipt by the
respective ratings agency of a policy of insurance obtained by the issuer of
the bonds involved and issued by the Preinsured Bond Insurer named in the
bond's title. A commitment for insurance in connection with these bonds has
been issued by the Preinsured Bond Insurer named in the bond's title. "
N/R" indicates that the applicable rating service did not provide a rating
for that particular Security. For a brief description of the rating symbols
and their related meanings, see "Other Matters--Description of Securities
Ratings" .

(3)There is shown under this heading the year in which each issue of Bonds is
initially or currently callable and the call price for that year. Each issue
of Bonds continues to be callable at declining prices thereafter (but not
below par value) except for original issue discount bonds which are redeemable
at prices based on the issue price plus the amount of original issue discount
accreted to redemption date plus, if applicable, some premium, the amount of
which will decline in subsequent years. "S.F." indicates a sinking
fund is established with respect to an issue of Bonds. Redemption pursuant to
call provisions generally will, and redemption pursuant to sinking fund
provisions may, occur at times when the redeemed bonds have an offering side
valuation which represents a premium over par. Certain Bonds may be subject to
redemption without premium prior to the date shown pursuant to extraordinary
optional or mandatory redemptions if certain events occur. Single family
mortgage revenue bonds and housing authority bonds are most likely to be
called subject to such provisions, but other bonds may have similar call
features. Notwithstanding any provisions to the contrary, certain bond issuers
have in the past and others may in the future attempt to redeem Bonds prior to
their initially scheduled call dates and at prices which do not include any
premiums. For a general discussion of certain of these events, see "
Unitholder Explanations--Bond Redemptions" . To the extent that the
Securities were deposited in a Trust at a price higher than the price at which
they are redeemed, this will represent a loss of capital when compared with
the original Public Offering Price of the Units. Conversely, to the extent
that the Bonds were acquired at a price lower than the redemption price, this
will represent an increase in capital when compared with the original Public
Offering Price of the Units. Distributions will generally be reduced by the
amount of the income which would otherwise have been paid with respect to
redeemed Securities and there will be distributed to Unitholders the principal
amount and any premium received on such redemption. The Estimated Current
Return and Estimated Long-Term Return in this event may be affected by such
redemptions. For the Federal tax effect on Unitholders of such redemptions and
resultant distributions, see paragraph (2) under "Other Matters--Federal
Tax Status" .

(4)Evaluation of Securities is made on the basis of current offering prices
for the Securities. The offering prices are greater than the current bid
prices of the Securities which is the basis on which Unit value is determined
for purposes of redemption of Units (see "Unitholder Explanations--Public
Offering--Offering Price" ).

(5)Other information regarding the Bonds in each Trust, as of the Date of
Deposit, is as follows: 


   
<TABLE>
<CAPTION>
                                                           Annual                   
                      Annual                    Profit     Interest    Bid Side     
Trust                 Insurance   Cost to       (Loss) to  Income to   Evaluation   
                      Cost        Sponsor       Sponsor    Trust       of  Bonds    
<S>                   <C>         <C>           <C>        <C>         <C>          
Colorado IM-IT....... $--         $   2,895,757 $   30,485 $   164,763 $   2,904,563
New Jersey IM-IT..... $--         $   2,927,525 $   37,706 $   169,408 $   2,942,014
Pennsylvania IM-IT... $--         $   2,832,082 $   41,859 $   165,595 $   2,852,438
</TABLE>
    



The Sponsor may have entered into contracts which hedge interest rate
fluctuations on certain Bonds in certain Portfolios. The cost of any such
contracts and the corresponding gain or loss is included in the Cost to
Sponsor. Certain Securities in the Fund, if any, marked by a double asterisk
(**), have been purchased on a "when, as and if issued" or "
delayed delivery" basis. Interest on these Securities begins accruing to
the benefit of Unitholders on their respective dates of delivery. Delivery is
expected to take place at various dates after the First Settlement Date as
follows: 


   
<TABLE>
<CAPTION>
                      Percent of                                         
Trust                 Aggregate Principal    Range of Days Subsequent    
                      Amount                 to First Settlement Date    
<S>                   <C>                    <C>                         
Colorado IM-IT.......                 14%               5 days
New Jersey IM-IT.....                  --                 --
Pennsylvania IM-IT...                 27%               12 days
</TABLE>



On the Date of Deposit, the offering side evaluations of the Securities in the
Colorado IM-IT, New Jersey IM-IT and Pennsylvania IM-IT Trusts were higher
than the bid side evaluations of such Securities by 0.72%, 0.76% and 0.73%,
respectively, of the aggregate principal amounts of such Securities.
    
"#" indicates that such Bond was issued at an original issue discount.
The tax effect of Bonds issued at an original issue discount is described in
"Other Matters--Federal Tax Status" .
   
(6)This Bond has been purchased at a deep discount from the par value because
there is little or no stated interest income thereon. Bonds which pay no
interest are normally described as "zero coupon" bonds. Over the life
of bonds purchased at a deep discount the value of such bonds will increase
such that upon maturity the holders of such bonds will receive 100% of the
principal amount thereof. To the extent that zero coupon bonds are sold or
called prior to maturity, there is no guarantee that the value of the proceeds
received therefrom by the Trust will equal or exceed the par value that would
have been obtained at maturity of such zero coupon bonds. Approximately 5%, 3%
and 3% of the aggregate principal amount of the Securities in the Colorado
IM-IT Trust, New Jersey IM-IT Trust and Pennsylvania IM-IT Trust,
respectively, are "zero coupon" bonds.
    


   
Underwriting. The Underwriters named below have severally purchased Units in
the following respective amounts from the Sponsor. 



<TABLE>
<CAPTION>
Name                                                                                                        Colorado  IM-IT
                                           Address                                                              Trust Units
<S>                                        <C>                                                           <C>               
Van Kampen American Capital Dist., Inc.    One Parkview Plaza, Oakbrook Terrace, Illinois 60181                      2,477 
Dean Witter Reynolds, Incorporated         2 World Trade Center, 59th Floor, New York, New York 10048                  100 
A.G. Edwards & Sons, Inc.                  One North Jefferson Avenue, St. Louis, Missouri 63103                       100 
Fidelity Capital Markets                   164 Northern Avenue, Boston, Massachusetts 02210                            100 
Gruntal & Co., Incorporated                14 Wall Street, New York, New York 10005                                    100 
Edward D. Jones & Co.                      201 Progress Parkway, Maryland Heights, Missouri  63043                     100 
Smith Barney Inc.                          388 Greenwich Street, 23rd Floor, New York, New York 10013                  100 
                                                                                                                     3,077 
</TABLE>



<TABLE>
<CAPTION>
                                                                                                                   New Jersey 
Name                                                                                                               IM-IT Trust
                                           Address                                                                       Units
<S>                                        <C>                                                                 <C>            
Van Kampen American Capital Dist., Inc.    One Parkview Plaza, Oakbrook Terrace, Illinois 60181                         1,868 
Pershing DIV of DLJ Secs Corp.             One Pershing Plaza, 7th Floor, Jersey City, New Jersey 07399                   250 
Prudential Securities Inc.                 1 New York Plaza, 14th Floor, New York, New York 10292-2014                    250 
R. Seelaus & Co., Inc.                     The Atrium @ 47 Maple Street, Summit, New Jersey 07901                         250 
Advest, Inc.                               280 Trumbull Street, Hartford, Connecticut 06103                               100 
Dean Witter Reynolds, Incorporated         2 World Trade Center, 59th Floor, New York, New York 10048                     100 
Gruntal & Co., Incorporated                14 Wall Street, New York, New York 10005                                       100 
Janney Montgomery Scott Inc.               1801 Market Street, 11th Floor, Philadelphia, Pennsylvania 19103               100 
Ryan, Beck & Co.                           80 Main Street, West Orange, New Jersey 07052                                  100 
                                                                                                                        3,118 
</TABLE>



<TABLE>
<CAPTION>
                                                                                                                 Pennsylvania 
Name                                                                                                               IM-IT Trust
                                           Address                                                                       Units
<S>                                        <C>                                                                  <C>           
Van Kampen American Capital Dist., Inc.    One Parkview Plaza, Oakbrook Terrace, Illinois 60181                         1,272 
Legg Mason Wood Walker, Inc.               111 South Calvert Street, Baltimore, Maryland 21202                            250 
Pershing DIV of DLJ Secs Corp.             One Pershing Plaza, 7th Floor, Jersey City, New Jersey 07399                   250 
Prudential Securities Inc.                 1 New York Plaza, 14th Floor, New York, New York 10292-2014                    250 
Advest, Inc.                               280 Trumbull Street, Hartford, Connecticut 06103                               100 
                                           Four Falls Corporate Center, Suite 212, Route 23,                                  
Boenning & Scattergood, Inc.                   West Conshohocken, Pennsylvania 19428                                      100 
Dean Witter Reynolds, Incorporated         2 World Trade Center, 59th Floor, New York, New York 10048                     100 
A.G. Edwards & Sons, Inc.                  One North Jefferson Avenue, St. Louis, Missouri 63103                          100 
Fidelity Capital Markets                   164 Northern Avenue, Boston, Massachusetts 02210                               100 
Gruntal & Co., Incorporated                14 Wall Street, New York, New York 10005                                       100 
Janney Montgomery Scott Inc.               1801 Market Street, 11th Floor, Philadelphia, Pennsylvania 19103               100 
Edward D. Jones & Co.                      201 Progress Parkway, Maryland Heights, Missouri  63043                        100 
W.H. Newbold's Son & Co.                  1500 Walnut Street, Philadelphia, Pennsylvania 19102                            100 
Wheat First Butcher Singer                 River Front Plaza, 901 East Byrd Street, Richmond, Virginia 23219              100 
                                                                                                                        3,022 
</TABLE>
    

Units may also be sold to broker-dealers and others at prices representing the
per Unit concession or agency commission stated under "Trust
Administration--General--Unit Distribution" . However, resales of Units by
such broker-dealers and others to the public will be made at the Public
Offering Price described in the Prospectus. The Sponsor reserves the right to
reject, in whole or in part, any order for the purchase of Units and the right
to change the amount of the concession or agency commission from time to time.

In addition to any other benefits the Underwriters may realize from the sale
of the Units of the Fund, the Agreement Among Underwriters provides that the
Sponsor will share on a pro rata basis among those Underwriters who underwrite
at least 250 Units 50% of the aggregate gain, if any, represented by the
difference between the Sponsor's cost of the Securities in connection with
their acquisition and the evaluation thereof on the Date of Deposit less
deductions for certain accrued interest and certain other costs. See "
Trust Administration--General--Sponsor and Underwriter Compensation" and
"Portfolio" for the applicable Trust.

Underwriters and broker-dealers of the Trusts, banks and/or others are
eligible to participate in a program in which such firms receive from the
Sponsor a nominal award for each of their representatives who have sold a
minimum number of units of unit investment trusts created by the Sponsor
during a specified time period. In addition, at various times the Sponsor may
implement other programs under which the sales forces of Underwriters,
brokers, dealers, banks and/or others may be eligible to win other nominal
awards for certain sales efforts, or under which the Sponsor will reallow to
any such Underwriters, brokers, dealers, banks and/or others that sponsor
sales contests or recognition programs conforming to criteria established by
the Sponsor, or participate in sales programs sponsored by the Sponsor, an
amount not exceeding the total applicable sales charges on the sales generated
by such persons at the public offering price during such programs. Also, the
Sponsor in its discretion may from time to time pursuant to objective criteria
established by the Sponsor pay fees to qualifying underwriters, brokers,
dealers, banks or others for certain services or activities which are
primarily intended to result in sales of Units of the Trusts. Such payments
are made by the Sponsor out of its own assets, and not out of the assets of
the Trusts. These programs will not change the price Unitholders pay for their
Units or the amount that the Trusts will receive from the Units sold.
Approximately every eighteen months the Sponsor holds a business seminar which
is open to Underwriters that sell units of trusts it sponsors. The Sponsor
pays substantially all costs associated with the seminar, excluding
Underwriter travel costs. Each Underwriter is invited to send a certain number
of representatives based on the gross number of units such firm underwrites
during a designated time period.

FUND ADMINISTRATION AND EXPENSES

Sponsor. Van Kampen American Capital Distributors, Inc., a Delaware
corporation, is the Sponsor of the Trust. Van Kampen American Capital
Distributors, Inc. is primarily owned by Clayton, Dubilier & Rice, Inc., a New
York-based private investment firm. Van Kampen American Capital Distributors,
Inc. management owns a significant minority equity position. Effective
December 20, 1994, the parent of Van Kampen Merritt Inc. acquired American
Capital Management & Research, Inc. As a result, Van Kampen Merritt Inc., has
changed its name to Van Kampen American Capital Distributors, Inc. Van Kampen
American Capital Distributors, Inc. specializes in the underwriting and
distribution of unit investment trusts and mutual funds. The Sponsor is a
member of the National Association of Securities Dealers, Inc. and has offices
at One Parkview Plaza, Oakbrook Terrace, Illinois 60181, (708) 684-6000 and
2800 Post Oak Boulevard, Houston, Texas, 77056, (713) 993-0500. It maintains a
branch office in Philadelphia and has regional representatives in Atlanta,
Dallas, Los Angeles, New York, San Francisco, Seattle and Tampa. As of
December 31, 1994 the total stockholders' equity of Van Kampen Merritt Inc.
was $117,357,000 (audited). (This paragraph relates only to the Sponsor and
not to the Insured Municipals Income Trust or to any Insured Multi-Series
thereof or to any other Underwriter. The information is included herein only
for the purpose of informing investors as to the financial responsibility of
the Sponsor and its ability to carry out its contractual obligations. More
detailed financial information will be made available by the Sponsor upon
request.)

As of June 30, 1995, the Sponsor and its affiliates managed or supervised
approximately $54 billion of investment products, of which over $25.3 billion
is invested in municipal securities. The Sponsor and its affiliates managed
$40.95 billion of assets, consisting of $25.2 billion for 42 open end mutual
funds, $9.9 billion for 38 closed-end funds and $5.9 billion for 87
institutional accounts. The Sponsor has also deposited approximately $26
billion of unit investment trusts. Based on cumulative assets deposited, the
Sponsor believes that it is the largest sponsor of insured municipal unit
investment trusts, primarily through the success of its Insured Municipals
Income Trust(R)or the IM-IT(R)trust. The Sponsor also provides
surveillance and evaluation services at cost for approximately $13 billion of
unit investment trust assets outstanding. Since 1976, the Sponsor has serviced
over two million investor accounts, opened through retail distribution firms.
Van Kampen American Capital Distributors, Inc. is the sponsor of the various
series of the trusts listed below. Some of the mutual funds and closed-end
funds for which Van Kampen American Capital Distributors, Inc. acts as
distributor are also listed below. Only those mutual funds available for
reinvestment under the Reinvestment Option to Unitholders of unit investment
trusts are listed below. Unitholders may only invest in the trusts, mutual
funds and closed-end funds which are registered for sale in the state of
residence of such Unitholder. In order for a Unitholder to invest in the
trusts, mutual funds and closed-end funds listed below, such Unitholder must
obtain a prospectus relating to the trust or fund involved. A prospectus is
the only means by which an offer can be delivered to investors.

 


   
<TABLE>
Name of Trust                                                       Trust Investment Objective
<CAPTION>
<S>                                                                 <C>                                                       
Insured Municipals Income Trust.....................................Tax-exempt income by investing in insured municipal securities 
                                                                    Double tax-exemption for California residents by investing in  
California Insured Municipals Income Trust..........................insured California municipal securities                        
                                                                    Double and in certain cases triple tax-exemption for New York  
New York Insured Municipals Income Trust............................residents by investing in insured New York municipal securities
                                                                    Double and in certain cases triple tax-exemption for           
                                                                    Pennsylvania residents by investing in insured Pennsylvania    
Pennsylvania Insured Municipals Income Trust........................municipal securities                                           
Insured Municipals Income Trust, Insured Multi-Series                                                                              
 (Premium Bond Series, National, Limited Maturity, Intermediate,                                                                   
 Short Intermediate, Discount, Alabama, Arizona, Arkansas,                                                                         
 California, California Intermediate, California Intermediate                                                                      
 Laddered Maturity, California Premium, Colorado, Connecticut,                                                                     
 Florida, Florida Intermediate, Florida Intermediate Laddered                                                                      
 Maturity, Georgia, Louisiana, Massachusetts, Massachusetts                                                                        
 Premium, Michigan, Michigan Intermediate, Michigan                                                                                
 Intermediate Laddered Maturity, Michigan Premium,                                                                                 
 Minnesota, Missouri, Missouri Intermediate Laddered Maturity,                                                                     
 Missouri Premium, New Jersey, New Jersey Intermediate                                                                             
 Laddered Maturity, New Mexico, New York, New York                                                                                 
 Intermediate, New York Intermediate Laddered Maturity, New         Tax-exempt income by investing in insured municipal            
 York Limited Maturity, Ohio, Ohio Intermediate, Ohio               securities; all issuers of bonds in a state trust are located  
 Intermediate Laddered Maturity, Ohio Premium, Oklahoma,            in such state or in territories or possessions of the United   
 Pennsylvania, Pennsylvania Intermediate, Pennsylvania              States-- providing exemptions from all state income tax for    
 Intermediate Laddered Maturity, Pennsylvania Premium,              residents of such state (except for the Oklahoma IM-IT Trust   
 Tennessee, Texas, Texas Intermediate Laddered Maturity,            where a portion of the income of the Trust may be subject to   
 Washington, West Virginia).........................................the Oklahoma state income tax)                                 
Insured Tax Free Bond Trust.........................................Tax-exempt income by investing in insured municipal securities 
                                                                    Tax-exempt income by investing in insured municipal            
                                                                    securities; all issuers of bonds in a state trust are located  
Insured Tax Free Bond Trust, Insured Multi-Series                   in such state--providing exemptions from state income tax for  
 (National Limited Maturity, New York)..............................residents of such state                                        
Investors' Quality Tax-Exempt Trust.................................Tax-exempt income by investing in municipal securities         
Investors' Quality Tax-Exempt Trust, Multi-Series                                                                                  
 (National, National AMT, Intermediate, Alabama, Arizona,                                                                          
  Arkansas, California, Colorado, Connecticut, Delaware,                                                                           
  Florida, Georgia, Hawaii, Kansas, Kentucky, Maine, Maryland,      Tax-exempt income by investing in municipal securities; all    
  Massachusetts, Michigan, Minnesota, Missouri, Nebraska,           issuers of bonds in a state trust are located in such state or 
  New Jersey, New York, North Carolina, Ohio, Oregon,               in territories or possessions of the United States--providing  
  Pennsylvania, South Carolina, Virginia)...........................exemptions from state income tax for residents of such state   
                                                                    Tax-exempt income for investors not subject to the alternative 
                                                                    minimum tax by investing in municipal securities, some or all  
Investors' Quality Municipals Trust, AMT Series.....................of which are subject to the Federal alternative minimum tax    
Investors' Corporate Income Trust...................................Taxable income by investing in corporate bonds                 
                                                                    Taxable income by investing in government-backed GNMA          
Investors' Governmental Securities--Income Trust....................securities                                                     
                                                                    High current income through an investment in a diversified     
                                                                    portfolio of foreign currency denominated corporate debt       
Van Kampen Merritt International Bond Income Trust..................obligations                                                    
                                                                    High current income consistent with preservation of capital    
                                                                    through a diversified investment in a fixed portfolio of       
                                                                    insured, long-term or intermediate-term corporate debt         
Van Kampen Merritt Insured Income Trust.............................securities                                                     
                                                                    High current income consistent with preservation of capital    
                                                                    through a diversified investment in a fixed portfolio of       
                                                                    insured, long-term or intermediate-term corporate debt         
Van Kampen American Capital Insured Income Trust....................securities                                                     
                                                                    High dividend income and capital appreciation by investing in  
Van Kampen Merritt Utility Income Trust.............................common stock of electric utilities                             
                                                                     Provide the potential for capital appreciation and income by  
                                                                    investing in a portfolio of actively traded, New York Stock    
                                                                    Exchange listed equity securities which are components of the  
Van Kampen Merritt Select Equity Trust..............................Dow Jones Industrial Average*                                  
                                                                    Protect Unitholders' capital and provide the potential for     
                                                                    capital appreciation and income by investing a portion of its  
                                                                    portfolio in "zero coupon" U.S. Treasury obligations   
                                                                    and the remainder of the trust's portfolio in the identical    
Van Kampen Merritt Select Equity and Treasury Trust.................equity securities which comprise the Select Equity Trust       
                                                                    Provide the potential for capital appreciation and income by   
                                                                    investing in a portfolio of actively traded, New York Stock    
                                                                    Exchange listed equity securities which are components of the  
Van Kampen Merritt Blue Chip Opportunity Trust......................Dow Jones Industrial Average*                                  
                                                                    Protect Unitholders' capital and provide the potential for     
                                                                    capital appreciation and income by investing a portion of its  
                                                                    portfolio in "zero coupon" U.S. Treasury obligations   
                                                                    and the remainder of the trust's portfolio in actively traded, 
                                                                    New York Stock Exchange listed equity securities which at the  
Van Kampen Merritt Blue Chip Opportunity and                        time of the creation of the trust were components of the Dow   
 Treasury Trust.....................................................Jones Industrial Average*                                      
                                                                    High current income consistent with preservation of capital    
                                                                    through a diversified investment in a fixed portfolio          
                                                                    primarily consisting of Brady Bonds of emerging market         
                                                                    countries that have restructured sovereign debt pursuant to    
Van Kampen American Capital Emerging Markets Income Trust...........the framework of the Brady Plan                                
                                                                    Provide the potential for capital appreciation and income      
                                                                    consistent with the preservation of invested capital, by       
                                                                    investing in a portfolio of equity securities which provide    
Van Kampen Merritt Global Telecommunications Trust..................equipment for or services to the telecommunications industry   
                                                                    Provide the potential for capital appreciation and income      
                                                                    consistent with the preservation of invested capital, by       
                                                                    investing in a portfolio of equity securities diversified      
Van Kampen Merritt Global Energy Trust..............................within the energy industry                                     
                                                                    Provide an above average total return through a combination of 
                                                                    potential capital appreciation and dividend income, consistent 
                                                                    with preservation of invested capital, by investing in a       
                                                                    portfolio of common stocks of the ten companies in a           
Strategic Ten Trust                                                 recognized stock exchange index having the highest dividend    
 (United States, United Kingdom, and Hong Kong Portfolios)..........yields                                                         
                                                                    Provide the potential for capital appreciation and income      
                                                                    consistent with the preservation of invested capital, by       
                                                                    investing in a portfolio of equity securities diversified      
Van Kampen Merritt Brand Name Equity Trust..........................within the non-durable consumer products industry              
                                                                    Provide the potential for long-term capital appreciation by    
                                                                    investing in shares of Govett Smaller Companies Fund and to    
                                                                    protect Unitholders' capital by investing a portion of its     
Govett Smaller Companies Fund and Treasury Trust....................portfolio in "zero coupon" U.S. Treasury obligations   
</TABLE>



*The Dow Jones Industrial Average is the property of Dow Jones & Company, Inc.
Dow Jones & Company, Inc. has not granted to the Trust or the Sponsor a
license to use the Dow Jones Industrial Average. 

 



<TABLE>
Name of Mutual Fund                                                 Fund Investment Objective 
<CAPTION>
<S>                                                                 <C>                                                        
Van Kampen American Capital U.S. Government Fund....................High current income by investing in U.S. Government securities 
                                                                    High current income exempt from Federal income taxes by        
Van Kampen American Capital Insured Tax Free Income Fund............investing in insured municipal securities                      
                                                                    High level of current income exempt from Federal income tax,   
Van Kampen American Capital Municipal Income Fund...................consistent with preservation of capital                        
                                                                    High current income exempt from Federal income taxes by        
Van Kampen American Capital Tax Free High Income Fund...............investing in medium and lower grade municipal securities       
                                                                    High current income exempt from Federal and California income  
Van Kampen American Capital California Insured Tax Free Fund........taxes by investing in insured California municipal securities  
                                                                    Provide a high level of current income by investing in medium  
                                                                    and lower grade domestic and foreign government and corporate  
                                                                    debt securities. The Fund will seek capital appreciation as a  
Van Kampen American Capital High Yield Fund.........................secondary objective                                            
                                                                    Long-term growth of both capital and dividend income by        
Van Kampen American Capital Growth and Income Fund..................investing in dividend paying common stocks                     
                                                                    High current income exempt from Federal and Pennsylvania state 
                                                                    and local income taxes by investing in medium and lower grade  
Van Kampen American Capital Pennsylvania Tax Free Income Fund.......Pennsylvania municipal securities                              
                                                                    High current income by investing in a broad range of money     
Van Kampen American Capital Reserve Fund............................market instruments that will mature within twelve months       
                                                                    High current income exempt from Federal income taxes by        
                                                                    investing in a broad range of municipal securities that will   
Van Kampen American Capital Tax Free Money Fund.....................mature within twelve months                                    
                                                                    High current income by investing in a global portfolio of high 
                                                                    quality debt securities denominated in various currencies      
Van Kampen American Capital Short-Term Global Income Fund...........having remaining maturities of not more than three years       
                                                                    High level of current income with a relatively stable net      
Van Kampen American Capital Limited Maturity Government Fund........asset value investing in U.S. Government securities            
                                                                    High level of current income exempt from Federal income tax,   
Van Kampen American Capital Limited Term Municipal Income Fund......consistent with preservation of capital                        
                                                                    Provide capital appreciation and current income by investing   
                                                                    in a diversified portfolio of common stocks and income         
                                                                    securities issued by companies engaged in the utilities        
Van Kampen American Capital Utility Fund............................industry                                                       
                                                                    Provide shareholders with high current income. The Fund will   
Van Kampen American Capital Strategic Income Fund...................seek capital appreciation as a secondary objective             
                                                                    High level of current income exempt from Federal income tax    
                                                                    and Florida intangible personal property taxes consistent with 
Van Kampen American Capital Florida Insured Tax Free Income Fund....preservation of capital                                        
                                                                    High level of current income exempt from Federal income tax    
                                                                    and New Jersey gross income tax consistent with preservation   
Van Kampen American Capital New Jersey Tax Free Income Fund.........of capital                                                     
                                                                    High level of current income exempt from Federal as well as    
                                                                    New York State and New York City income taxes, consistent with 
Van Kampen American Capital New York Tax Free Income Fund...........preservation of capital                                        
                                                                    To provide shareholders current income while also seeking to   
Van Kampen American Capital Balanced Fund...........................provide capital growth                                         
Van Kampen American Capital Comstock Fund...........................Provide capital growth and income                              
Van Kampen American Capital Corporate Bond Fund.....................Provide current income consistent with preservation of capital 
                                                                    Provide capital appreciation by investing in common stocks of  
Van Kampen American Capital Emerging Growth Fund....................small and medium sized companies                               
                                                                    Provide capital appreciation by investing in medium sized      
Van Kampen American Capital Enterprise Fund.........................companies                                                      
                                                                    Provide current income by investing in dividend paying common  
                                                                    stocks. The Fund will seek long-term growth as a secondary     
Van Kampen American Capital Equity Income Fund......................objective                                                      
                                                                    Provide long-term growth by investing in a diversified         
Van Kampen American Capital Global Equity Fund......................portfolio of international and domestic equity securities      
                                                                    Provide an above average total return by investing in domestic 
                                                                    and international equity and income securities, government     
Van Kampen American Capital Global Managed Assets Fund..............securities and corporate securities                            
                                                                    Provide high level of current income while seeking to preserve 
                                                                    shareholder's capital by investing in international and U.S.   
Van Kampen American Capital Global Government Securities Fund.......Government securities                                          
                                                                    Provide an above average current return consistent with        
Van Kampen American Capital Government Securities Fund..............preservation of capital                                        
                                                                    Provide current income, capital appreciation and conservation  
Van Kampen American Capital Harbor Fund.............................of capital                                                     
                                                                    Provide high level of interest income exempt from Federal      
                                                                    income tax by investing in medium to lower grade municipal     
Van Kampen American Capital High Yield Municipal Fund...............securities                                                     
                                                                    Provide current income and capital appreciation by investing   
Van Kampen American Capital High Income Corporate Bond Fund.........in medium to lower grade corporate income securities           
Van Kampen American Capital Pace Fund...............................Provide capital appreciation by investing in common stocks     
                                                                    Provide long-term growth of capital and current income by      
Van Kampen American Capital Real Estate Securities Fund.............investing in securities of real estate industry companies      
                                                                    High current income exempt from Federal taxes by investing in  
Van Kampen American Capital Texas Tax Free Income Fund..............Texas municipal securities                                     
Van Kampen American Capital U.S. Government Trust for                                                                              
 Income.............................................................High current income by investing in U.S. Government securities 
                                                                    Provide long-term growth and current income by investing in a  
Van Kampen American Capital Exchange Fund...........................diversified portfolio of equity securities                     
</TABLE>


     

<TABLE>
Name of Closed-end Fund                                             Fund Investment Objective
<CAPTION>
<S>                                                                 <C>                                    
                                                                    High current income exempt from Federal income taxes with      
                                                                    safety of principal by  investing in a diversified portfolio   
Van Kampen Merritt Municipal Income Trust...........................of investment grade municipal securities                       
                                                                    High current income exempt from Federal and California income  
                                                                    taxes with safety of principal by investing in a diversified   
Van Kampen Merritt California Municipal Trust.......................portfolio of investment grade California municipal securities  
                                                                    High current income while seeking to preserve shareholders'    
                                                                    capital by investing in a diversified portfolio of high yield  
Van Kampen Merritt Intermediate Term High Income Trust..............fixed income securities                                        
                                                                    High current income while seeking to preserve shareholders'    
                                                                    capital by investing in a diversified portfolio of high yield  
Van Kampen Merritt Limited Term High Income Trust...................fixed income securities                                        
                                                                    High current income, consistent with preservation of capital   
                                                                    by investing in interests in floating or variable rate senior  
Van Kampen Merritt Prime Rate Income Trust..........................loans                                                          
                                                                    High current income exempt from Federal income tax, consistent 
Van Kampen Merritt Investment Grade Municipal Trust.................with preservation of capital                                   
                                                                    High level of current income exempt from Federal income tax,   
Van Kampen Merritt Municipal Trust..................................consistent with preservation of capital                        
                                                                    High current income exempt from Federal and California income  
                                                                    taxes with safety of principal by investing in a diversified   
Van Kampen Merritt California Quality Municipal Trust...............portfolio of investment grade California municipal securities  
                                                                    High current income exempt from Federal income taxes and       
                                                                    Florida intangible personal property taxes with safety of      
                                                                    principal by investing in a diversified portfolio of           
Van Kampen Merritt Florida Quality Municipal Trust..................investment grade Florida municipal securities                  
                                                                    High current income exempt from Federal as well as New York    
                                                                    State and New York City income taxes with safety of principal  
                                                                    by investing in a diversified portfolio of investment grade    
Van Kampen Merritt New York Quality Municipal Trust.................New York municipal securities                                  
                                                                    High current income exempt from Federal and Ohio income taxes  
                                                                    with safety of principal by investing in a diversified         
Van Kampen Merritt Ohio Quality Municipal Trust.....................portfolio of investment grade Ohio municipal securities        
                                                                    High current income exempt from Federal and Pennsylvania       
                                                                    income taxes with safety of principal by investing in a        
                                                                    diversified portfolio of investment grade Pennsylvania         
Van Kampen Merritt Pennsylvania Quality Municipal Trust.............municipal securities                                           
                                                                    High level of current income exempt from Federal income tax,   
Van Kampen Merritt Trust for Investment Grade Municipals............consistent with preservation of capital                        
                                                                    High level of current income exempt from Federal income tax,   
                                                                    consistent with preservation of capital by investing in a      
                                                                    diversified portfolio of municipal securities which are        
                                                                    covered by insurance with respect to timely payment of         
Van Kampen Merritt Trust for Insured Municipals.....................principal and interest                                         
                                                                    High level of current income exempt from Federal and           
                                                                    California income taxes, consistent with preservation of       
Van Kampen Merritt Trust for Investment Grade CA                    capital by investing in a diversified portfolio of California  
 Municipals.........................................................municipal securities                                           
                                                                    High level of current income exempt from Federal income taxes, 
                                                                    consistent with preservation of capital. The Fund also seeks   
Van Kampen Merritt Trust for Investment Grade FL                    to offer its Shareholders the opportunity to own securities    
 Municipals.........................................................exempt from Florida intangible personal property taxes         
                                                                    High level of current income exempt from Federal income taxes  
Van Kampen Merritt Trust for Investment Grade NJ                    and New Jersey gross income taxes, consistent with             
 Municipals ........................................................preservation of capital                                        
                                                                    High level of current income exempt from Federal as well as    
Van Kampen Merritt Trust for Investment Grade NY                    from New York State and New York City income taxes, consistent 
 Municipals.........................................................with preservation of capital                                   
                                                                    High level of current income exempt from Federal and           
                                                                    Pennsylvania income taxes and, where possible under local law, 
Van Kampen Merritt Trust for Investment Grade PA                    local income and property taxes, consistent with preservation  
 Municipals.........................................................of capital                                                     
                                                                    High level of current income exempt from Federal income tax,   
                                                                    consistent with preservation of capital by investing in a      
Van Kampen Merritt Municipal Opportunity Trust......................diversified portfolio of municipal securities                  
                                                                    High level of current income exempt from Federal income tax,   
                                                                    consistent with preservation of capital by investing in a      
Van Kampen Merritt Advantage Municipal Income Trust.................diversified portfolio of municipal securities                  
                                                                    High level of current income exempt from Federal and           
                                                                    Pennsylvania income taxes and, where possible under local law, 
                                                                    local income and property taxes, consistent with preservation  
Van Kampen Merritt Advantage Pennsylvania Municipal Income Trust....of capital                                                     
                                                                    Provide common shareholders with a high level of current       
                                                                    income exempt from Federal income taxes, consistent with       
Van Kampen Merritt Strategic Sector Municipal Trust.................preservation of capital                                        
                                                                    High level of current income exempt from Federal income taxes, 
Van Kampen Merritt Value Municipal Income Trust.....................consistent with preservation of capital                        
                                                                    High level of current income exempt from Federal and           
Van Kampen Merritt California Value Municipal                       California income taxes, consistent with preservation of       
 Income Trust.......................................................capital                                                        
                                                                    High level of current income exempt from Federal income taxes  
Van Kampen Merritt Massachusetts Value Municipal                    and Massachusetts personal income taxes, consistent with       
 Income Trust.......................................................preservation of capital                                        
                                                                    High level of current income exempt from Federal income taxes  
Van Kampen Merritt New Jersey Value Municipal                       and New Jersey gross income tax, consistent with preservation  
 Income Trust.......................................................of capital                                                     
                                                                    High level of current income exempt from Federal as well as    
Van Kampen Merritt New York Value Municipal                         New York State and New York City income taxes, consistent with 
 Income Trust.......................................................preservation of capital                                        
Van Kampen Merritt Ohio Value Municipal Income                      High level of current income exempt from Federal and Ohio      
 Trust..............................................................income taxes, consistent with preservation of capital          
                                                                    High level of current income exempt from Federal and           
Van Kampen Merritt Pennsylvania Value Municipal                     Pennsylvania income taxes, consistent with preservation of     
 Income Trust.......................................................capital                                                        
                                                                    High level of current income exempt from Federal income tax,   
Van Kampen Merritt Municipal Opportunity Trust II...................consistent with preservation of capital                        
                                                                    High level of current income exempt from Federal income tax,   
                                                                    consistent with preservation of capital. The Fund seeks to     
                                                                    offer its common shareholders the opportunity to own           
                                                                    securities exempt from Florida intangible personal property    
Van Kampen Merritt Florida Municipal Opportunity Trust .............taxes                                                          
                                                                    Provide common shareholders with a high level of current       
                                                                    income exempt from Federal income tax, consistent with         
Van Kampen Merritt Advantage Municipal Income Trust II..............preservation of capital                                        
                                                                    To provide common shareholders with a high level of current    
                                                                    income exempt from Federal income tax, consistent with         
Van Kampen Merritt Select Sector Municipal Trust....................preservation of capital                                        
                                                                    Provide interest income and conservation of capital by         
                                                                    investing in a diversified portfolio of high quality debt      
American Capital Bond Fund..........................................instruments.                                                   
                                                                    Provide current income and the potential for capital           
American Capital Convertible Securities Fund........................appreciation.                                                  
                                                                    Provide high current income consistent with the preservation   
American Capital Income Trust.......................................of capital by investing in fixed income securities.            
                                                                    Provide current income. The Trust will seek capital            
Mosher..............................................................appreciation as a secondary objective.                         
</TABLE>
    

    

If the Sponsor shall fail to perform any of its duties under the Trust
Agreement or become incapable of acting or become bankrupt or its affairs are
taken over by public authorities, then the Trustee may (i) appoint a successor
Sponsor at rates of compensation deemed by the Trustee to be reasonable and
not exceeding amounts prescribed by the Securities and Exchange Commission,
(ii) terminate the Trust Agreement and liquidate the Fund as provided therein
or (iii) continue to act as Trustee without terminating the Trust Agreement.

All costs and expenses incurred in creating and establishing the Fund,
including the cost of the initial preparation, printing and execution of the
Trust Agreement and the certificates, legal and accounting expenses,
advertising and selling expenses, expenses of the Trustee, initial evaluation
fees and other out-of-pocket expenses have been borne by the Sponsor at no
cost to the Fund.

Compensation of Sponsor and Evaluator. The Sponsor will not receive any fees
in connection with its activities relating to the Fund. However, American
Portfolio Evaluation Services, a division of Van Kampen American Capital
Investment Advisory Corp., which is a wholly-owned subsidiary corporation of
the Sponsor, will receive an annual supervisory fee as indicated under 
"Summary of Essential Financial Information" for providing portfolio
supervisory services for the Fund. Such fee (which is based on the number of
Units outstanding in each Trust on January 1 of each year) may exceed the
actual costs of providing such supervisory services for this Fund, but at no
time will the total amount received for portfolio supervisory services
rendered to Insured Municipals Income Trust, 1st Insured Multi-Series and
subsequent series and to any other unit investment trusts sponsored by the
Sponsor for which the Evaluator provides portfolio supervisory services in any
calendar year exceed the aggregate cost to the Evaluator of supplying such
services in such year. In addition, the Evaluator shall receive an annual
evaluation fee as indicated under "Summary of Essential Financial
Information" for regularly evaluating each Trust's portfolio. Both of the
foregoing fees may be increased without approval of the Unitholders by amounts
not exceeding proportionate increases under the category "All Services
Less Rent of Shelter" in the Consumer Price Index published by the United
States Department of Labor or, if such category is no longer published, in a
comparable category. The Sponsor and the Underwriters will receive sales
commissions and may realize other profits (or losses) in connection with the
sale of Units and the deposit of the Securities as described under "
General--Sponsor and Underwriter Compensation" below.

Trustee. The Trustee is The Bank of New York, a trust company organized under
the laws of New York. The Bank of New York has its offices at 101 Barclay
Street, New York, New York 10286 (800) 221-7668. The Bank of New York is
subject to supervision and examination by the Superintendent of Banks of the
State of New York and the Board of Governors of the Federal Reserve System,
and its deposits are insured by the Federal Deposit Insurance Corporation to
the extent permitted by law.

The duties of the Trustee are primarily ministerial in nature. It did not
participate in the selection of Bonds for the portfolios of any of the Trusts.

In accordance with the Trust Agreement, the Trustee shall keep proper books of
record and account of all transactions at its office for the Fund. Such
records shall include the name and address of, and the certificates issued by
the Fund to, every Unitholder of the Fund. Such books and records shall be
open to inspection by any Unitholder at all reasonable times during the usual
business hours. The Trustee shall make such annual or other reports as may
from time to time be required under any applicable state or Federal statute,
rule or regulation (see "Unitholder Explanations--Public Offering--Reports
Provided" ). The Trustee is required to keep a certified copy or duplicate
original of the Trust Agreement on file in its office available for inspection
at all reasonable times during the usual business hours by any Unitholder,
together with a current list of the Securities held in the Fund.

Under the Trust Agreement, the Trustee or any successor trustee may resign and
be discharged of the trusts created by the Trust Agreement by executing an
instrument in writing and filing the same with the Sponsor. The Trustee or
successor trustee must mail a copy of the notice of resignation to all Fund
Unitholders then of record, not less than 60 days before the date specified in
such notice when such resignation is to take effect. The Sponsor upon
receiving notice of such resignation is obligated to appoint a successor
trustee promptly. If, upon such resignation, no successor trustee has been
appointed and has accepted the appointment within 30 days after notification,
the retiring Trustee may apply to a court of competent jurisdiction for the
appointment of a successor. The Sponsor may remove the Trustee and appoint a
successor trustee as provided in the Trust Agreement at any time with or
without cause. Notice of such removal and appointment shall be mailed to each
Unitholder by the Sponsor. Upon execution of a written acceptance of such
appointment by such successor trustee, all the rights, powers, duties and
obligations of the original trustee shall vest in the successor. The
resignation or removal of a Trustee becomes effective only when the successor
trustee accepts its appointment as such or when a court of competent
jurisdiction appoints a successor trustee.

Any corporation into which a Trustee may be merged or with which it may be
consolidated, or any corporation resulting from any merger or consolidation to
which a Trustee shall be a party, shall be the successor trustee. The Trustee
must be a banking corporation organized under the laws of the United States or
any state and having at all times an aggregate capital, surplus and undivided
profits of not less than $5,000,000.
   
Trustee's Fee. For its services the Trustee will receive a fee based on the
aggregate outstanding principal amount of Securities in each Trust as of the
opening of business on January 2 and July 2 of each year as set forth under
"Per Unit Information" for the applicable Trust. During the first year
the Trustee may agree to reduce its fee (and to the extent necessary pay
miscellaneous expenses of a Trust) as stated under "Per Unit
Information" for the applicable Trust. After the first year such fee will
be computed at $.51 per $1,000 principal amount of Securities for that portion
of each Trust under the semi-annual distribution plan and $.91 per $1,000
principal amount of Securities for that portion of each Trust under the
monthly distribution plan. Based on the size of the Trust on the Date of
Deposit and assuming all Unitholders had chosen the semi-annual distribution
plan, the Trustee's estimated annual fees for ordinary recurring services
would initially amount to $1,530, $1,553 and $1,505 for the Colorado IM-IT,
New Jersey IM-IT and Pennsylvania IM-IT Trusts, respectively. Assuming in the
alternative that all Unitholders had elected the monthly distribution plan
such fees would have initially amount to $2,730, $2,771 and $2,685 for the
above mentioned Trusts, respectively. The Trustee's fees are payable monthly
on or before the fifteenth day of each month from the Interest Account of each
Trust to the extent funds are available and then from the Principal Account of
each Trust, with such payments being based on each Trust's portion of such
expenses. Since the Trustee has the use of the funds being held in the
Principal and Interest Accounts for future distributions, payment of expenses
and redemptions and since such Accounts are non-interest bearing to
Unitholders, the Trustee benefits thereby. Part of the Trustee's compensation
for its services to each Trust is expected to result from the use of these
funds. Such fees may be increased without approval of the Unitholders by
amounts not exceeding proportionate increases under the category "All
Services Less Rent of Shelter" in the Consumer Price Index published by
the United States Department of Labor or, if such category is no longer
published, in a comparable category. The Trustee's fees will not be increased
in future years in order to make up any reduction in the Trustee's fees
described under "Per Unit Information" for the applicable Trust. For a
discussion of the services rendered by the Trustee pursuant to its obligations
under the Trust Agreement, see "Unitholder Explanations--Public
Offering--Reports Provided" and "Trustee" above.
    
 Portfolio Administration. The Trustee is empowered to sell, for the purpose
of redeeming Units tendered by any Unitholder, and for the payment of expenses
for which funds may not be available, such of the Bonds designated by the
Evaluator as the Trustee in its sole discretion may deem necessary. The
Evaluator, in designating such Securities, will consider a variety of factors,
including (a) interest rates, (b) market value and (c) marketability. In
connection with the Insured Trusts to the extent that Bonds are sold which are
current in payment of principal and interest in order to meet redemption
requests and defaulted Bonds are retained in the portfolio in order to
preserve the related insurance protection applicable to said Bonds, the
overall quality of the Bonds remaining in such Trust's portfolio will tend to
diminish. Except as described in this section and in certain other unusual
circumstances for which it is determined by the Trustee to be in the best
interests of the Unitholders or if there is no alternative, the Trustee is not
empowered to sell Bonds from an Insured Trust which are in default in payment
of principal or interest or in significant risk of such default and for which
value has been attributed for the insurance obtained by such Insured Trust.
Because of such restrictions on the Trustee under certain circumstances, the
Sponsor may seek a full or partial suspension of the right of Unitholders to
redeem their Units in an Insured Trust. See "Unitholder
Explanations--Public Offering--Redemption of Units" . The Sponsor is
empowered, but not obligated, to direct the Trustee to dispose of Bonds in the
event of an advanced refunding. 

The Sponsor is required to instruct the Trustee to reject any offer made by an
issuer of any of the Securities to issue new obligations in exchange or
substitution for any Security pursuant to a refunding or refinancing plan,
except that the Sponsor may instruct the Trustee to accept or reject such an
offer or to take any other action with respect thereto as the Sponsor may deem
proper if (1) the issuer is in default with respect to such Security or (2) in
the written opinion of the Sponsor the issuer will probably default with
respect to such Security in the reasonably foreseeable future. Any obligation
so received in exchange or substitution will be held by the Trustee subject to
the terms and conditions of the Trust Agreement to the same extent as
Securities originally deposited thereunder. Within five days after the deposit
of obligations in exchange or substitution for underlying Securities, the
Trustee is required to give notice thereof to each Unitholder of the Trust
thereby affected, identifying the Securities eliminated and the Securities
substituted therefor. Except as stated herein and under "Unitholder
Explanations--Settlement of Bonds in the Trusts" regarding the
substitution of Replacement Bonds for Failed Bonds, the acquisition by the
Fund of any securities other than the Securities initially deposited is not
permitted.

If any default in the payment of principal or interest on any Security occurs
and no provision for payment is made therefor within 30 days, the Trustee is
required to notify the Sponsor thereof. If the Sponsor fails to instruct the
Trustee to sell or to hold such Security within 30 days after notification by
the Trustee to the Sponsor of such default, the Trustee may in its discretion
sell the defaulted Security and not be liable for any depreciation or loss
thereby incurred.

Sponsor Purchases of Units. The Trustee shall notify the Sponsor of any tender
of Units for redemption. If the Sponsor's bid in the secondary market at that
time equals or exceeds the Redemption Price per Unit, it may purchase such
Units by notifying the Trustee before the close of business on the second
succeeding business day and by making payment therefor to the Unitholder not
later than the day on which the Units would otherwise have been redeemed by
the Trustee. Units held by the Sponsor may be tendered to the Trustee for
redemption as any other Units.

The offering price of any Units acquired by the Sponsor will be in accord with
the Public Offering Price described in the then currently effective prospectus
describing such Units. Any profit resulting from the resale of such Units will
belong to the Sponsor which likewise will bear any loss resulting from a lower
offering or Redemption Price subsequent to its acquisition of such Units.

Insurance Premiums. The cost of the portfolio insurance obtained by the
respective Trusts, if any, is that amount shown in footnote (5) in "Notes
to Portfolios" , so long as such Trust retains the Bonds. Premiums, which
are obligations of each Insured Trust, are payable monthly by the Trustee on
behalf of the respective Trust. As Bonds in the portfolio of an Insured Trust
are redeemed by their respective issuers or are sold by the Trustee, the
amount of the premium will be reduced in respect of those Bonds no longer
owned by and held in such Trust. If the Trustee exercises the right to obtain
permanent insurance, the premiums payable for such permanent insurance will be
paid solely from the proceeds of the sale of the related Bonds. The premiums
for such permanent insurance with respect to each Bond will decline over the
life of the Bond. A Trust does not incur any expense for Preinsured Bond
insurance, since the premium or premiums for such insurance have been paid by
the issuer or the Sponsor prior to the deposit of such Preinsured Bonds in a
Trust. Preinsured Bonds are not additionally insured by an Insured Trust.

Miscellaneous Expenses. The following additional charges are or may be
incurred by the Trusts: (a) fees of the Trustee for extraordinary services,
(b) expenses of the Trustee (including legal and auditing expenses) and of
counsel designated by the Sponsor, (c) various governmental charges, (d)
expenses and costs of any action taken by the Trustee to protect the Trusts
and the rights and interests of Unitholders, (e) indemnification of the
Trustee for any loss, liability or expenses incurred by it in the
administration of the Fund without negligence, bad faith or willful misconduct
on its part, (f) any special custodial fees payable in connection with the
sale of any of the Bonds in a Trust, (g) expenditures incurred in contacting
Unitholders upon termination of the Trusts and (h) costs incurred to reimburse
the Trustee for advancing funds to the Trusts to meet scheduled distributions
(which costs may be adjusted periodically in response to fluctuations in
short-term interest rates).

The fees and expenses set forth herein are payable out of the Trusts. When
such fees and expenses are paid by or owing to the Trustee, they are secured
by a lien on the portfolio or portfolios of the applicable Trust or Trusts. If
the balances in the Interest and Principal Accounts are insufficient to
provide for amounts payable by the Fund, the Trustee has the power to sell
Securities to pay such amounts.

GENERAL

Amendment or Termination. The Sponsor and the Trustee have the power to amend
the Trust Agreement without the consent of any of the Unitholders when such an
amendment is (a) to cure an ambiguity or to correct or supplement any
provision of the Trust Agreement which may be defective or inconsistent with
any other provision contained therein or (b) to make such other provisions as
shall not adversely affect the interest of the Unitholders (as determined in
good faith by the Sponsor and the Trustee), provided that the Trust Agreement
may not be amended to increase the number of Units issuable thereunder or to
permit the deposit or acquisition of securities either in addition to or in
substitution for any of the Securities initially deposited in the Fund, except
for the substitution of certain refunding securities for such Securities. In
the event of any amendment, the Trustee is obligated to notify promptly all
Unitholders of the substance of such amendment.

A Trust may be terminated at any time by consent of Unitholders of 51% of the
Units of such Trust then outstanding or by the Trustee when the value of such
Trust, as shown by any semi-annual evaluation, is less than that indicated
under "Summary of Essential Financial Information" . A Trust will be
liquidated by the Trustee in the event that a sufficient number of Units not
yet sold are tendered for redemption by the Underwriters, including the
Sponsor, so that the net worth of such Trust would be reduced to less than 40%
of the initial principal amount of such Trust. If a Trust is liquidated
because of the redemption of unsold Units by the Underwriters, the Sponsor
will refund to each purchaser of Units the entire sales charge paid by such
purchaser. The Trust Agreement provides that each Trust shall terminate upon
the redemption, sale or other disposition of the last Security held in such
Trust, but in no event shall it continue beyond the end of the year preceding
the fiftieth anniversary of the Trust Agreement in the case of a State Trust,
or beyond the end of the year preceding the twentieth anniversary of the Trust
Agreement in the case of IM-IT Limited Maturity, IM-IT Intermediate and IM-IT
Short Intermediate Trusts. In the event of termination of the Fund or any
Trust, written notice thereof will be sent by the Trustee to each Unitholder
of such Trust at his address appearing on the registration books of the Fund
maintained by the Trustee. Within a reasonable time thereafter the Trustee
shall liquidate any Securities then held in such Trust and shall deduct from
the funds of such Trust any accrued costs, expenses or indemnities provided by
the Trust Agreement, including estimated compensation of the Trustee and costs
of liquidation and any amounts required as a reserve to provide for payment of
any applicable taxes or other governmental charges. The sale of Securities in
the Trust upon termination may result in a lower amount than might otherwise
be realized if such sale were not required at such time. For this reason,
among others, the amount realized by a Unitholder upon termination may be less
than the principal amount or par amount of Securities represented by the Units
held by such Unitholder. The Trustee shall then distribute to each Unitholder
his share of the balance of the Interest and Principal Accounts. With such
distribution the Unitholder shall be furnished a final distribution statement
of the amount distributable. At such time as the Trustee in its sole
discretion shall determine that any amounts held in reserve are no longer
necessary, it shall make distribution thereof to Unitholders in the same
manner.

Notwithstanding the foregoing, in connection with final distributions to
Unitholders of an Insured Trust, it should be noted that because the portfolio
insurance obtained by an Insured Trust is applicable only while Bonds so
insured are held by such Trust, the price to be received by such Trust upon
the disposition of any such Bond which is in default, by reason of nonpayment
of principal or interest, will not reflect any value based on such insurance.
Therefore, in connection with any liquidation, it shall not be necessary for
the Trustee to, and the Trustee does not currently intend to, dispose of any
Bond or Bonds if retention of such Bond or Bonds, until due, shall be deemed
to be in the best interest of Unitholders, including, but not limited to,
situations in which a Bond or Bonds so insured are in default and situations
in which a Bond or Bonds so insured have deteriorated market prices resulting
from a significant risk of default. Since the Preinsured Bonds will reflect
the value of the related insurance, it is the present intention of the Sponsor
not to direct the Trustee to hold any of such Preinsured Bonds after the date
of termination. All proceeds received, less applicable expenses, from
insurance on defaulted Bonds not disposed of at the date of termination will
ultimately be distributed to Unitholders of record as of such date of
termination as soon as practicable after the date such defaulted Bond or Bonds
become due and applicable insurance proceeds have been received by the Trustee.

Limitation on Liabilities. The Sponsor, the Evaluator and the Trustee shall be
under no liability to Unitholders for taking any action or for refraining from
taking any action in good faith pursuant to the Trust Agreement, or for errors
in judgment, but shall be liable only for their own willful misfeasance, bad
faith or gross negligence in the performance of their duties or by reason of
their reckless disregard of their obligations and duties hereunder. The
Trustee shall not be liable for depreciation or loss incurred by reason of the
sale by the Trustee of any of the Securities. In the event of the failure of
the Sponsor to act under the Trust Agreement, the Trustee may act thereunder
and shall not be liable for any action taken by it in good faith under the
Trust Agreement.

The Trustee shall not be liable for any taxes or other governmental charges
imposed upon or in respect of the Securities or upon the interest thereon or
upon it as Trustee under the Trust Agreement or upon or in respect of the Fund
which the Trustee may be required to pay under any present or future law of
the United States of America or of any other taxing authority having
jurisdiction. In addition, the Trust Agreement contains other customary
provisions limiting the liability of the Trustee.

The Trustee, Sponsor and Unitholders may rely on any evaluation furnished by
the Evaluator and shall have no responsibility for the accuracy thereof.
Determinations by the Evaluator under the Trust Agreement shall be made in
good faith upon the basis of the best information available to it; provided,
however, that the Evaluator shall be under no liability to the Trustee,
Sponsor or Unitholders for errors in judgment. This provision shall not
protect the Evaluator in any case of willful misfeasance, bad faith, gross
negligence or reckless disregard of its obligations and duties.

Unit Distribution. During the initial offering period, Units will be
distributed to the public by Underwriters, broker-dealers and others (see "
Underwriting" ) at the Public Offering Price, plus interest accrued but
unpaid from the First Settlement Date to the date of settlement as described
above under "Unitholder Explanations--Accrued Interest--Accrued
Interest" . Upon the completion of the initial offering, Units repurchased
in the secondary market, if any, may be offered by this Prospectus at the
secondary Public Offering Price plus interest accrued to the date of
settlement in the manner described.

The Sponsor intends to qualify the Units for sale in a number of states.
Broker-dealers or others will be allowed a concession or agency commission in
connection with the distribution of Units during the initial offering period
of in the case of a State Trust $30.00 per Unit for less than 100 Units,
$36.00 per Unit for any single transaction of 100 to 249 Units, $38.00 per
Unit for any single transaction of 250 to 499 Units, $39.00 per Unit for any
single transaction of 500 to 999 Units and $39.00 per Unit for any single
transaction of 1,000 or more Units, provided that such Units are acquired
either from the Sponsor (in the case of dealer transactions) or through the
Sponsor (in the case of transactions involving brokers or others). The
increased concession or agency commission is a result of the discount given to
purchasers for quantity purchases. See "Unitholder Explanations--Public
Offering--General" . Certain commercial banks are making Units of the Fund
available to their customers on an agency basis. A portion of the sales charge
paid by these customers (equal to the agency commission referred to above) is
retained by or remitted to the banks. Under the Glass-Steagall Act, banks are
prohibited from underwriting Units of the Fund; however, the Glass-Steagall
Act does permit certain agency transactions and the banking regulators have
not indicated that these particular agency transactions are not permitted
under such Act. In addition, state securities laws on this issue may differ
from the interpretations of federal law expressed herein and banks and
financial institutions may be required to register as dealers pursuant to
state law. Any quantity discount (see "Unitholder Explanations--Public
Offering--General" ) provided to investors will be borne by the selling
dealer or agent. For secondary market transactions, such concession or agency
commission will amount to 70% of the applicable sales charge as determined
using the table found in "Unitholder Explanations--Public Offering" .

Except as stated hereinafter, the minimum purchase requirement in the initial
offering period and in the secondary market is one Unit. In connection with
fully disclosed transactions with the Sponsor, the minimum purchase
requirement will be that number of Units set forth in the contract between the
Sponsor and the related broker or agent.

The Sponsor reserves the right to reject, in whole or in part, any order for
the purchase of Units and to change the amount of the concession or agency
commission to dealers and others from time to time. See "Underwriting" .

Sponsor and Underwriter Compensation. The Underwriters will receive a gross
sales commission equal to that percentage of the Public Offering Price of the
Units as indicated under "Unitholder Explanations--Public
Offering--Offering Price" less any reduced sales charges for quantity
purchases as described under "Unitholder Explanations--Public
Offering--General" .
   
The Sponsor will receive from the Underwriters the excess of such gross sales
commission over $35.00, $29.00, $27.00, $22.00 and $35.00 per Unit of any
IM-IT, IM-IT Limited Maturity, IM-IT Intermediate, IM-IT Short Intermediate
and other Insured Trusts, respectively, as of the Date of Deposit. In
connection with quantity sales to purchasers of any State Trust the
Underwriters will receive from the Sponsor commissions totalling $37.00 per
Unit for any single transaction of 100 to 249 Units, $39.00 per Unit for any
single transaction of 250 to 499 Units, $40.00 per Unit for any single
transaction of 500 to 999 Units and $39.00 per Unit for any single transaction
of 1,000 or more Units. In connection with quantity sales to purchasers of any
Pennsylvania IM-IT Trust the Underwriters will receive from the Sponsor
commissions totalling $35.00 per Unit for any single transaction of 100 to 249
Units, $36.00 per Unit for any single transaction of 250 to 499 units, $37.00
per Unit for any single transaction of 500 to 999 Units and $38.00 per Unit
for any single transaction of 1,000 or more Units. In addition, any
Underwriter that sells a total of 25% or 1,500 Units, whichever is greater, of
any Pennsylvania IM-IT Trust will receive an additional $2.00 per each such
Unit. See "Unitholder Explanations--Public Offering--General." 
Further, each Underwriter who underwrites 1,000 or more Units in any Trust
will receive additional compensation from the Sponsor of $1.00 for each Unit
it underwrites. In addition, the Sponsor and certain of the Underwriters will
realize a profit or the Sponsor will sustain a loss, as the case may be, as a
result of the difference between the price paid for the Securities by the
Sponsor and the cost of such Securities to a Trust (which is based on the
determination by Interactive Data Services, Inc. of the aggregate offering
price of the underlying Securities in such Trust on the Date of Deposit). See
"Underwriting" and "Portfolio" for the applicable Trust and
"Notes to Portfolios" . The Sponsor and the Underwriters may also
realize profits or sustain losses with respect to Securities deposited in each
Trust which were acquired by the Sponsor from underwriting syndicates of which
they were members. The Sponsor has participated as sole underwriter or as
manager or as a member of the underwriting syndicates from which none of the
aggregate principal amount of the Securities in the portfolios of the Fund
were acquired. The Underwriters may further realize additional profit or loss
during the initial offering period as a result of the possible fluctuations in
the market value of the Securities in each Trust after the Date of Deposit,
since all proceeds received from purchasers of Units (excluding dealer
concessions or agency commissions allowed, if any) will be retained by the
Underwriters. Affiliates of an Underwriter are entitled to the same dealer
concessions or agency commissions that are available to the Underwriter.
    

As stated under "Unitholder Explanations--Public Offering--Market for
Units" , the Sponsor intends to, and certain of the other Underwriters may,
maintain a secondary market for the Units of the Fund. In so maintaining a
market, such person or persons will also realize profits or sustain losses in
the amount of any difference between the price at which Units are purchased
and the price at which Units are resold (which price is based on the bid
prices of the Securities in such Trust and includes a sales charge). In
addition, such person or persons will also realize profits or sustain losses
resulting from a redemption of such repurchased Units at a price above or
below the purchase price for such Units, respectively.

OTHER MATTERS 
   
Legal Opinions. The legality of the Units offered hereby and certain matters
relating to Federal and Colorado tax law have been passed upon by Chapman and
Cutler, 111 West Monroe Street, Chicago, Illinois 60603, as counsel for the
Sponsor. Pitney, Hardin, Kipp & Szuch has acted as special counsel to the Fund
for New Jersey tax matters. Saul, Ewing, Remick & Saul has acted as special
counsel to the Fund for Pennsylvania tax matters. Tanner Propp & Farber has
acted as counsel for the Trustee and as special counsel to the Fund for New
York tax matters. None of the special counsel for the Fund has expressed any
opinion regarding the completeness or materiality of any matters contained in
this Prospectus other than the tax opinion set forth under "Tax Status" 
 relating to the Trust for which it has provided an opinion.
    
Independent Certified Public Accountants. The statements of condition and the
related securities portfolios at the Date of Deposit included in this
Prospectus have been audited by Grant Thornton LLP, independent certified
public accountants, as set forth in their report in this prospectus, and are
included herein in reliance upon the authority of said firm as experts in
accounting and auditing.

FEDERAL TAX STATUS

In the opinion of Chapman and Cutler, counsel for the Sponsor, under existing
law:

(1)Each Trust is not an association taxable as a corporation for Federal
income tax purposes and interest and accrued original issue discount on Bonds
which is excludable from gross income under the Internal Revenue Code of 1986
(the "Code" ) will retain its status when distributed to Unitholders,
except to the extent such interest is subject to the alternative minimum tax,
an additional tax on branches of foreign corporations and the environmental
tax (the "Superfund Tax" ), as noted below;

(2)Each Unitholder is considered to be the owner of a pro rata portion of the
respective Trust under subpart E, subchapter J of chapter 1 of the Code and
will have a taxable event when such Trust disposes of a Bond, or when the
Unitholder redeems or sells his Units. Unitholders must reduce the tax basis
of their Units for their share of accrued interest received by the respective
Trust, if any, on Bonds delivered after the Unitholders pay for their Units to
the extent that such interest accrued on such Bonds during the period from the
Unitholder's settlement date to the date such Bonds are delivered to the
respective Trust and, consequently, such Unitholders may have an increase in
taxable gain or reduction in capital loss upon the disposition of such Units.
Gain or loss upon the sale or redemption of Units is measured by comparing the
proceeds of such sale or redemption with the adjusted basis of the Units. If
the Trustee disposes of Bonds (whether by sale, payment on maturity,
redemption or otherwise), gain or loss is recognized to the Unitholder. The
amount of any such gain or loss is measured by comparing the Unitholder's pro
rata share of the total proceeds from such disposition with the Unitholder's
basis for his or her fractional interest in the asset disposed of. In the case
of a Unitholder who purchases Units, such basis (before adjustment for earned
original issue discount and amortized bond premium, if any) is determined by
apportioning the cost of the Units among each of the Trust assets ratably
according to value as of the date of acquisition of the Units. The tax cost
reduction requirements of the Code relating to amortization of bond premium
may, under some circumstances, result in the Unitholder realizing a taxable
gain when his Units are sold or redeemed for an amount equal to his original
cost;

(3)Any proceeds paid under an insurance policy or policies dated the Date of
Deposit, issued to an Insured Trust by AMBAC Indemnity, Financial Guaranty or
a combination thereof with respect to the Bonds which represent maturing
interest on defaulted obligations held by the Trustee will be excludable from
Federal gross income if, and to the same extent as, such interest would have
been so excludable if paid by the issuer of the defaulted obligations provided
that, at the time such policies are purchased, the amounts paid for such
policies are reasonable, customary and consistent with the reasonable
expectation that the issuer of the obligations, rather than the insurer, will
pay debt service on the obligations; and

(4)Any proceeds paid under individual policies obtained by issuers of Bonds
which represent maturing interest on defaulted obligations held by the Trustee
will be excludable from Federal gross income if, and to the same extent as,
such interest would have been excludable if paid in the normal course by the
issuer of the defaulted obligations provided that, at the time such policies
are purchased, the amounts paid for such policies are reasonable, customary
and consistent with the reasonable expectation that the issuer of the
obligations, rather than the insurer, will pay debt service on the obligations.

Sections 1288 and 1272 of the Code provide a complex set of rules governing
the accrual of original issue discount. These rules provide that original
issue discount accrues either on the basis of a constant compound interest
rate or ratably over the term of the Bond, depending on the date the Bond was
issued. In addition, special rules apply if the purchase price of a Bond
exceeds the original issue price plus the amount of original issue discount
which would have previously accrued based upon its issue price (its 
"adjusted issue price" ) to prior owners. The application of these rules
will also vary depending on the value of the Bond on the date a Unitholder
acquires his Units and the price the Unitholder pays for his Units. Investors
with questions regarding these Code sections should consult with their tax
advisers. 

"The Revenue Reconciliation Act of 1993" (the "Tax Act" )
subjects tax-exempt bonds to the market discount rules of the Code effective
for bonds purchased after April 30, 1993. In general, market discount is the
amount (if any) by which the stated redemption price at maturity exceeds an
investor's purchase price (except to the extent that such difference, if any,
is attributable to original issue discount not yet accrued), subject to a
statutory de minimis rule. Market discount can arise based on the price a
Trust pays for Bonds or the price a Unitholder pays for his or her Units.
Under the Tax Act, accretion of market discount is taxable as ordinary income;
under prior law the accretion had been treated as capital gain. Market
discount that accretes while a Trust holds a Bond would be recognized as
ordinary income by the Unitholders when principal payments are received on the
Bond, upon sale or at redemption (including early redemption), or upon the
sale or redemption of his or her Units, unless a Unitholder elects to include
market discount in taxable income as it accrues. The market discount rules are
complex and Unitholders should consult their tax advisers regarding these
rules and their application.

In the case of certain corporations, the alternative minimum tax and the
Superfund Tax for taxable years beginning after December 31, 1986 depends upon
the corporation's alternative minimum taxable income, which is the
corporation's taxable income with certain adjustments. One of the adjustment
items used in computing the alternative minimum taxable income and the
Superfund Tax of a corporation (other than an S Corporation, Regulated
Investment Company, Real Estate Investment Trust, or REMIC) is an amount equal
to 75% of the excess of such corporation's "adjusted current earnings" 
over an amount equal to its alternative minimum taxable income (before such
adjustment item and the alternative tax net operating loss deduction). 
"Adjusted current earnings" includes all tax exempt interest, including
interest on all of the Bonds in the Fund. Unitholders are urged to consult
their tax advisers with respect to the particular tax consequences to them
including the corporate alternative minimum tax, the Superfund Tax and the
branch profits tax imposed by Section 884 of the Code.

Counsel for the Sponsor has also advised that under Section 265 of the Code,
interest on indebtedness incurred or continued to purchase or carry Units of a
Trust is not deductible for Federal income tax purposes. The Internal Revenue
Service has taken the position that such indebtedness need not be directly
traceable to the purchase or carrying of Units (however, these rules generally
do not apply to interest paid on indebtedness incurred to purchase or improve
a personal residence). Also, under Section 265 of the Code, certain financial
institutions that acquire Units would generally not be able to deduct any of
the interest expense attributable to ownership of such Units. Investors with
questions regarding this issue should consult with their tax advisers.

In the case of certain of the Bonds in the Fund, the opinions of bond counsel
indicate that interest on such Bonds received by a "substantial user" 
of the facilities being financed with the proceeds of these Bonds, or persons
related thereto, for periods while such Bonds are held by such a user or
related person, will not be excludible from Federal gross income, although
interest on such Bonds received by others would be excludible from Federal
gross income. "Substantial user" and "related person" are
defined under U.S. Treasury Regulations. Any person who believes that he or
she may be a "substantial user" or a "related person" as so
defined should contact his or her tax adviser.

In the opinion of Tanner Propp & Farber, special counsel to the Fund for New
York tax matters, under existing law, the Fund and each Trust are not
associations taxable as corporations and the income of each Trust will be
treated as the income of the Unitholders under the income tax laws of the
State and City of New York.

All statements of law in the Prospectus concerning exclusion from gross income
for Federal, state or other tax purposes are the opinions of counsel and are
to be so construed.

At the respective times of issuance of the Bonds, opinions relating to the
validity thereof and to the exclusion of interest thereon from Federal gross
income are rendered by bond counsel to the respective issuing authorities.
Neither the Sponsor nor Chapman and Cutler has made any special review for the
Fund of the proceedings relating to the issuance of the Bonds or of the basis
for such opinions.

In the case of corporations, the alternative tax rate applicable to long-term
capital gains is 35%, effective for long-term capital gains realized in
taxable years beginning on or after January 1, 1993. For taxpayers other than
corporations, net capital gains are subject to a maximum marginal stated tax
rate of 28%. However, it should be noted that legislative proposals are
introduced from time to time that affect tax rates and could affect relative
differences at which ordinary income and capital gains are taxed. Under the
Code, taxpayers must disclose to the Internal Revenue Service the amount of
tax-exempt interest earned during the year.

Section 86 of the Code, in general, provides that 50% of Social Security
benefits are includible in gross income to the extent that the sum of "
modified adjusted gross income" plus 50% of the Social Security benefits
received exceeds a "base amount" . The base amount is $25,000 for
unmarried taxpayers, $32,000 for married taxpayers filing a joint return and
zero for married taxpayers who do not live apart at all times during the
taxable year and who file separate returns. Modified adjusted gross income is
adjusted gross income determined without regard to certain otherwise allowable
deductions and exclusions from gross income and by including tax-exempt
interest. To the extent that Social Security benefits are includible in gross
income, they will be treated as any other item of gross income.

In addition, under the Tax Act, for taxable years beginning after December 31,
1993, up to 85% of Social Security benefits are includible in gross income to
the extent that the sum of "modified adjusted gross income" plus 50%
of Social Security benefits received exceeds an "adjusted base amount." 
 The adjusted base amount is $34,000 for unmarried taxpayers, $44,000 for
married taxpayers filing a joint return, and zero for married taxpayers who do
not live apart at all times during the taxable year and who file separate
returns.

Although tax-exempt interest is included in modified adjusted gross income
solely for the purpose of determining what portion, if any, of Social Security
benefits will be included in gross income, no tax-exempt interest, including
that received from a Trust, will be subject to tax. A taxpayer whose adjusted
gross income already exceeds the base amount or the adjusted base amount must
include 50% or 85%, respectively, of his Social Security benefits in gross
income whether or not he receives any tax-exempt interest. A taxpayer whose
modified adjusted gross income (after inclusion of tax-exempt interest) does
not exceed the base amount need not include any Social Security benefits in
gross income.

For a discussion of the state tax status of income earned on Units of a Trust,
see "Tax Status" for the applicable Trust. Except as noted therein,
the exemption of interest on state and local obligations for Federal income
tax purposes discussed above does not necessarily result in exemption under
the income or other tax laws of any State or City. The laws of the several
States vary with respect to the taxation of such obligations.
   
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

To the Board of Directors of Van Kampen American Capital Distributors, Inc.
and the Unitholders of Insured Municipals Income Trust, 186th Insured
Multi-Series (Colorado IM-IT, New Jersey IM-IT and Pennsylvania IM-IT Trusts):

We have audited the accompanying statements of condition and the related
portfolios of Insured Municipals Income Trust, 186th Insured Multi-Series
(Colorado IM-IT, New Jersey IM-IT and Pennsylvania IM-IT Trusts) as of October
16, 1995. The statements of condition and portfolios are the responsibility of
the Sponsor. Our responsibility is to express an opinion on such financial
statements 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 statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of irrevocable letters of credit deposited to
purchase tax-exempt securities by correspondence with the Trustee. An audit
also includes assessing the accounting principles used and significant
estimates made by the Sponsor, as well as evaluating the overall financial
statement presentation. We believe our audit provides 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 Insured Municipals Income
Trust, 186th Insured Multi-Series (Colorado IM-IT, New Jersey IM-IT and
Pennsylvania IM-IT Trusts) as of October 16, 1995, in conformity with
generally accepted accounting principles.


Chicago, Illinois                     GRANT THORNTON LLP
October 16, 1995
    



DESCRIPTION OF SECURITIES RATINGS

Standard & Poor's, A Division of the McGraw-Hill Companies. A Standard &
Poor's corporate or municipal bond rating is a current assessment of the
creditworthiness of an obligor with respect to a specific debt obligation.
This assessment of creditworthiness may take into consideration obligors such
as guarantors, insurers or lessees.

The bond rating is not a recommendation to purchase or sell a security,
inasmuch as it does not comment as to market price.

The ratings are based on current information furnished to Standard & Poor's by
the issuer and obtained by Standard & Poor's from other sources it considers
reliable. The ratings may be changed, suspended or withdrawn as a result of
changes in, or unavailability of, such information.

The ratings are based, in varying degrees, on the following considerations:

I. Likelihood of default--capacity and willingness of the obligor as to the
timely payment of interest and repayment of principal in accordance with the
terms of the obligation.

II. Nature of and provisions of the obligation.

III. Protection afforded by, and relative position of, the obligation in the
event of bankruptcy, reorganization or other arrangements under the laws of
bankruptcy and other laws affecting creditors' rights.

AAA--This is the highest rating assigned by Standard & Poor's to a debt
obligation and indicates an extremely strong capacity to pay principal and
interest.

AA--Bonds rated AA also qualify as high-quality debt obligations. Capacity to
pay principal and interest is very strong, and in the majority of instances
they differ from AAA issues only in small degree.

A--Bonds rated A have a strong capacity to pay principal and interest,
although they are somewhat more susceptible to the adverse effects of changes
in circumstances and economic conditions.

BBB--Bonds rated BBB are regarded as having an adequate capacity to pay
interest and repay principal. Whereas they normally exhibit adequate
protection parameters, adverse economic conditions or changing circumstances
are more likely to lead to a weakened capacity to pay interest and repay
principal for debt in this category than in higher rated categories.

Plus (+) or Minus (-): To provide more detailed indications of credit quality,
the ratings from "AA" to "BBB" may be modified by the addition
of a plus or minus sign to show relative standing within the major rating
categories.

Provisional Ratings: A provisional rating ("p" ) assumes the successful
completion of the project being financed by the issuance of the bonds being
rated and indicates that payment of debt service requirements is largely or
entirely dependent upon the successful and timely completion of the project.
This rating, however, while addressing credit quality subsequent to
completion, makes no comment on the likelihood of, or the risk of default upon
failure of, such completion. Accordingly, the investor should exercise his own
judgment with respect to such likelihood and risk.

Moody's Investors Service, Inc. A brief description of the applicable Moody's
Investors Service, Inc. ("Moody's" ) rating symbols and their meanings
follows:

Aaa--Bonds which are rated Aaa are judged to be the best quality. They carry
the smallest degree of investment risk and are generally referred to as 
"gilt edge" . Interest payments are protected by a large, or by an
exceptionally stable, margin and principal is secure. While the various
protective elements are likely to change, such changes as can be visualized
are most unlikely to impair the fundamentally strong position of such issues.
With the occasional exception of oversupply in a few specific instances, the
safety of obligations of this class is so absolute that their market value is
affected solely by money market fluctuations.

Aa--Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally known
as high grade bonds. They are rated lower than the best bonds because margins
of protection may not be as large as in Aaa securities or fluctuations of
protective elements may be of greater amplitude or there may be other elements
present which make the long-term risks appear somewhat larger than in Aaa
securities. These Aa bonds are high grade, their market value virtually immune
to all but money market influences, with the occasional exception of
oversupply in a few specific instances.

A--Bonds which are rated A possess many favorable investment attributes and
are to be considered as higher medium grade obligations. Factors giving
security to principal and interest are considered adequate, but elements may
be present which suggest a susceptibility to impairment sometime in the
future. The market value of A-rated bonds may be influenced to some degree by
credit circumstances during a sustained period of depressed business
conditions. During periods of normalcy, bonds of this quality frequently move
in parallel with Aaa and Aa obligations, with the occasional exception of
oversupply in a few specific instances.

Baa--Bonds which are rated Baa are considered as medium grade obligations;
i.e., they are neither highly protected nor poorly secured. Interest payments
and principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.

Moody's bond rating symbols may contain numerical modifiers of a generic
rating classification. The modifier 1 indicates that the bond ranks at the
high end of its category; the modifier 2 indicates a mid-range ranking; and
the modifier 3 indicates that the issue ranks in the lower end of its generic
rating category.

Con--Bonds for which the security depends upon the completion of some act or
the fulfillment of some condition are rated conditionally. These are bonds
secured by (a) earnings of projects under construction, (b) earnings of
projects unseasoned in operating experience, (c) rentals which begin when
facilities are completed, or (d) payments to which some other limiting
condition attaches. Parenthetical rating denotes probable credit stature upon
completion of construction or elimination of basis of condition.

* As published by the rating companies.



   
<TABLE>
                            INSURED MUNICIPALS INCOME TRUST
                              186th INSURED MULTI-SERIES
                               Statements of Condition
                                      As of 
                                October 16, 1995
<CAPTION>
INVESTMENT IN SECURITIES                                    Colorado      New Jersey    Pennsylvania 
                                                            IM-IT Trust   IM-IT Trust   IM-IT Trust  
<S>                                                         <C>           <C>           <C>          
Contracts to purchase tax-exempt securities <F1><F2><F4>... $   2,926,242 $   2,965,231 $   2,873,941
Accrued interest to the First Settlement Date <F1><F4>.....        36,546        56,606        31,199
Total...................................................... $   2,962,788 $   3,021,837 $   2,905,140
LIABILITY AND INTEREST OF UNITHOLDERS                                                                
Liability-- ...............................................                                          
 Accrued interest payable to Sponsor <F1><F4>               $      36,546 $      56,606 $      31,199
Interest of Unitholders-- .................................                                          
Cost to investors <F3>.....................................     3,077,000     3,118,000     3,022,000
Less: Gross underwriting commission <F3>...................       150,758       152,769       148,059
Net interest to Unitholders <F1><F3><F4>...................     2,926,242     2,965,231     2,873,941
Total...................................................... $   2,962,788 $   3,021,837 $   2,905,140


<FN>
<F1>The aggregate value of the Securities listed under "Portfolio" for
each Trust herein, and their cost to such Trust are the same. The value of the
Securities is determined by Interactive Data Services, Inc. on the bases set
forth under "Unitholder Explanations--Public Offering--Offering Price". 
The contracts to purchase tax-exempt Securities are collateralized by
irrevocable letters of credit which have been deposited with the Trustee in
and for the following amounts: 
</TABLE>


<TABLE>
<CAPTION>
                                          Principal     Offering      Accrued         
                            Amount of     Amount of     Price of      Interest to     
                            Letter of     Bonds Under   Bonds Under   Expected        
                            Credit        Contracts     Contracts     Delivery  Dates 
<S>                         <C>           <C>           <C>           <C>             
Colorado IM-IT Trust....... $   2,962,356 $   3,000,000 $   2,926,242 $36,114         
New Jersey IM-IT Trust..... $   3,020,664 $   3,045,000 $   2,965,231 $55,433         
Pennsylvania IM-IT Trust... $   2,905,734 $   2,950,000 $   2,873,941 $31,793         

<FN>
<F2>Insurance coverage providing for timely payment, when due, of all principal
and interest on the Bonds in the Insured Trusts has been obtained either by
such Trusts, by a prior owner of the Bonds, by the Sponsor prior to the
deposit of such Bonds or by the issuers of the Bonds involved. Such insurance
does not guarantee the market value of the Bonds or the value of the Units.
The insurance obtained by the Insured Trusts is effective only while Bonds
thus insured are held in such Trusts. Neither the bid nor offering prices of
the underlying Bonds or of the Units, absent situations in which bonds are in
default in payment of principal or interest or in significant risk of such
default, include value, if any, attributable to the insurance obtained by such
Trusts.

<F3>The aggregate public offering price (exclusive of interest) and the aggregate
sales charge are computed on the bases set forth under "Unitholder
Explanations--Public Offering--Offering Price" and "Trust
Administration--General--Sponsor and Underwriter Profits" and assume all
single transactions involve less than 100 Units. For single transactions
involving 100 or more Units, the sales charge is reduced (see "Unitholder
Explanations--Public Offering--General" ) resulting in an equal reduction
in both the Cost to investors and the Gross underwriting commission while the
Net interest to Unitholders remains unchanged.

<F4>The Trustee will advance to the Trust the amount of net interest accrued to
October 19, 1995, the First Settlement Date, for distribution to the Sponsor
as the Unitholder of record as of the First Settlement Date.
</TABLE>
    

EQUIVALENT TAXABLE ESTIMATED CURRENT RETURN TABLES

As of the date of this prospectus, the following tables show the approximate
taxable estimated current returns for individuals that are equivalent to
tax-exempt estimated current returns under combined Federal and State taxes
(where applicable) using the published Federal and State tax rates (where
applicable) scheduled to be in effect in 1995. They incorporate increased tax
rates for higher income taxpayers that were included in the Revenue
Reconciliation Act of 1993. These tables illustrate approximately what you
would have to earn on taxable investments to equal the tax-exempt estimated
current return in your income tax bracket. For cases in which more than one
State bracket falls within a Federal bracket, the highest State bracket is
combined with the Federal bracket. The combined State and Federal tax rates
shown reflect the fact that State tax payments are currently deductible for
Federal tax purposes. The tables do not show the approximate taxable estimated
current returns for individuals that are subject to the alternative minimum
tax. The taxable equivalent estimated current returns may be somewhat higher
than the equivalent returns indicated in the following tables for those
individuals who have adjusted gross incomes in excess of $114,700. The tables
do not reflect the effect of limitations on itemized deductions and the
deduction for personal exemptions. They were designed to phase out certain
benefits of these deductions for higher income taxpayers. These limitations,
in effect, raise the marginal maximum Federal tax rate to approximately 44
percent for taxpayers filing a joint return and entitled to four personal
exemptions and to approximately 41 percent for taxpayers filing a single
return entitled to only one personal exemption. These limitations are subject
to certain maximums, which depend on the number of exemptions claimed and the
total amount of the taxpayer's itemized deductions. For example, the
limitation on itemized deductions will not cause a taxpayer to lose more than
80% of his allowable itemized deductions, with certain exceptions. See "
Other Matters--Federal Tax Status" for a more detailed discussion of
recent Federal tax legislation, including a discussion of provisions affecting
corporations.



   
COLORADO

<TABLE>
<CAPTION>
Taxable Income ($1,000's)                                                                Tax-Exempt Estimated Current Return 
<S>                  <C>                    <C>      <C>          <C>       <C>         <C>      <C>         <C>      <C>      
              Single                Joint      Tax                                                                           
              Return               Return  Bracket      5%        5 1/2%     6%         6 1/2%     7%         7 1/2%     8% 
                                                                                 Equivalent Taxable Estimated Current Return 
$        0 -  23.35  $        0 -  39.00     19.3%    6.20%        6.82%    7.43%        8.05%    8.67%        9.29%    9.91%
     23.35 -  56.55       39.00 -  94.25     31.6     7.31         8.04     8.77         9.50    10.23        10.96    11.70 
     56.55 - 117.95       94.25 - 143.60     34.5     7.63         8.40     9.16         9.92    10.69        11.45    12.21 
    117.95 - 256.50      143.60 - 256.50     39.2     8.22         9.05     9.87        10.69    11.51        12.34    13.16 
        Over 256.50          Over 256.50     42.6     8.71         9.58    10.45        11.32    12.20        13.07    13.94 
</TABLE>



NEW JERSEY

<TABLE>
<CAPTION>
Taxable Income ($1,000's)                                                                Tax-Exempt Estimated Current Return 
<S>                  <C>                    <C>       <C>          <C>     <C>         <C>       <C>         <C>       <C>      
              Single                Joint      Tax                                                                           
              Return               Return  Bracket     5 %         5 1/2%    6%         6 1/2%    7%          7 1/2%    8% 
                                                                                 Equivalent Taxable Estimated Current Return 
$        0 -  23.35  $        0 -  39.00     16.8%    6.01%        6.61%    7.21%        7.81%    8.41%        9.01%    9.62%
     23.35 -  56.55       39.00 -  94.25     32.3     7.39         8.12     8.86         9.60    10.34        11.08    11.82 
                          94.25 - 143.60     35.2     7.72         8.49     9.26        10.03    10.80        11.57    12.35 
     56.55 - 117.95                          35.5     7.75         8.53     9.30        10.08    10.85        11.63    12.40 
    117.95 - 256.50      143.60 - 256.50     40.2     8.36         9.20    10.03        10.87    11.71        12.54    13.38 
        Over 256.50          Over 256.50     43.6     8.87         9.75    10.64        11.52    12.41        13.30    14.18 
</TABLE>



PENNSYLVANIA

<TABLE>
<CAPTION>
Taxable Income ($1,000's)                                                                   Tax-Exempt Estimated Current Return 
<S>                  <C>                    <C>       <C>         <C>       <C>         <C>        <C>          <C>      <C>      
              Single                Joint       Tax                                                                             
              Return               Return  Bracket*     5%         5 1/2%     6%         6 1/2%      7%          7 1/2%     8% 
                                                                                    Equivalent Taxable Estimated Current Return 
$        0 -  23.35  $        0 -  39.00     17.4 %    6.05%        6.66%    7.26%        7.87%     8.47%         9.08%    9.69%
     23.35 -  56.55       39.00 -  94.25       30      7.14         7.86     8.57         9.29     10.00         10.71    11.43 
     56.55 - 117.95       94.25 - 143.60     32.9      7.45         8.20     8.94         9.69     10.43         11.18    11.92 
    117.95 - 256.50      143.60 - 256.50     37.8      8.04         8.84     9.65        10.45     11.25         12.06    12.86 
        Over 256.50          Over 256.50     41.3      8.52         9.37    10.22        11.07     11.93         12.78    13.63 
</TABLE>
    



* The table does not reflect the effect of the exemption of the Trust from
local personal property taxes and from the Philadelphia School District
Investment Net Income Tax; accordingly, residents of Pennsylvania subject to
such taxes would need a higher taxable estimated current return than those
shown to equal the tax-exempt estimated current return of the Trust. 

A comparison of tax-free and equivalent taxable estimated current returns with
the returns on various taxable investments is one element to consider in
making an investment decision. The Sponsor may from time to time in its
advertising and sales materials compare the then current estimated returns on
the Trusts and returns over specified periods on other similar Van Kampen
American Capital sponsored unit investment trusts with returns on taxable
investments such as corporate or U.S. Government bonds, bank CDs and money
market accounts or money market funds, each of which has investment
characteristics that may differ from those of the Trusts. U.S. Government
bonds, for example, are backed by the full faith and credit of the U.S.
Government and bank CDs and money market accounts are insured by an agency of
the federal government. Money market accounts and money market funds provide
stability of principal, but pay interest at rates that vary with the condition
of the short-term debt market. The investment characteristics of the Trusts
are described more fully elsewhere in this Prospectus.

ESTIMATED CASH FLOWS TO UNITHOLDERS 

The tables below set forth the per Unit estimated monthly and semi-annual
distributions of interest and principal to Unitholders. The tables assume no
changes in expenses, no changes in the current interest rates, no exchanges,
redemptions, sales or prepayments of the underlying Securities prior to
maturity or expected retirement date and the receipt of principal upon
maturity or expected retirement date. To the extent the foregoing assumptions
change actual distributions will vary.


   
Colorado IM-IT Trust

Monthly

<TABLE>
<CAPTION>
                                               Estimated     Estimated    Estimated   
Distribution Dates                             Interest      Principal    Total       
(Each Month)                                   Distribution  Distribution Distribution
<S>           <C>      <C>            <C>      <C>           <C>          <C>         
December         1995                          $      5.97                $     5.97  
January          1996  - June            2005         4.27                      4.27  
July             2005                                 4.27   $    89.37        93.64  
August           2005                                 3.85                      3.85  
September        2005                                 3.85       162.49       166.34  
October          2005                                 3.06        48.75        51.81  
November         2005                                 2.82                      2.82  
December         2005                                 2.82       162.50       165.32  
January          2006                                 1.74       138.12       139.86  
February         2006  - August          2008         1.45                      1.45  
September        2008                                 1.43        97.50        98.93  
October          2008  - May             2012          .97                       .97  
June             2012                                  .97        65.00        65.97  
July             2012  - November        2015          .68                       .68  
December         2015                                  .68        48.74        49.42  
January          2016  - November        2025          .68                       .68  
December         2025                                  .28       162.50       162.78  
</TABLE>



Semi-annual


<TABLE>
<CAPTION>
Distribution Dates                            Estimated      Estimated    Estimated   
(Each January and July                        Interest       Principal    Total       
Unless Otherwise Indicated)                   Distribution   Distribution Distribution
<S>           <C>      <C>           <C>      <C>            <C>          <C>         
January          1996                         $      10.34                $    10.34  
July             1996  - January        2005         25.85                     25.85  
July             2005                                25.85   $    89.37        115.22 
September        2005                                            162.49       162.49  
October          2005                                             48.75        48.75  
December         2005                                            162.50       162.50  
January          2006                                18.34       138.12       156.46  
July             2006  - July           2008          8.81                      8.81  
September        2008                                             97.50        97.50  
January          2009                                 6.87                      6.87  
July             2009  - January        2012          5.92                      5.92  
June             2012                                             65.00        65.00  
July             2012                                 5.63                      5.63  
January          2013  - July           2015          4.17                      4.17  
December         2015                                             48.74        48.74  
January          2016  - July           2025          4.17                      4.17  
December         2025                                 3.09       162.50       165.59  
</TABLE>


New Jersey IM-IT Trust

Monthly

<TABLE>
<CAPTION>
                                              Estimated     Estimated    Estimated   
Distribution Dates                            Interest      Principal    Total       
(Each Month)                                  Distribution  Distribution Distribution
<S>          <C>      <C>            <C>      <C>           <C>          <C>         
December        1995                          $      6.07                $     6.07  
January         1996  - June            2005         4.34                      4.34  
July            2005                                 4.34   $   160.35       164.69  
August          2005  - February        2006         3.59                      3.59  
March           2006                                 3.59       118.67       122.26  
April           2006  - June            2006         3.03                      3.03  
July            2006                                 3.03       145.93       148.96  
August          2006  - June            2007         2.32                      2.32  
July            2007                                 1.95       160.36       162.31  
August          2007  - November        2007         1.58                      1.58  
December        2007                                 1.58       128.28       129.86  
January         2008  - December        2019          .96                       .96  
January         2020                                  .96        32.08        33.04  
February        2020  - June            2024          .96                       .96  
July            2024                                  .96        56.12        57.08  
August          2024  - October         2033          .73                       .73  
November        2033                                  .73       174.79       175.52  
</TABLE>


Semi-annual


<TABLE>
<CAPTION>
Distribution Dates                           Estimated      Estimated    Estimated   
(Each January and July                       Interest       Principal    Total       
Unless Otherwise Indicated)                  Distribution   Distribution Distribution
<S>          <C>      <C>           <C>      <C>            <C>          <C>         
January         1996                         $      10.48                $    10.48  
July            1996  - January        2005         26.20                     26.20  
July            2005                                26.20   $   160.35       186.55  
January         2006                                21.69                     21.69  
March           2006                                            118.67       118.67  
July            2006                                19.45       145.93       165.38  
January         2007                                14.04                     14.04  
July            2007                                13.66       160.36       174.02  
December        2007                                            128.28       128.28  
January         2008                                 8.91                      8.91  
July            2008  - July           2019          5.79                      5.79  
January         2020                                 5.79        32.08        37.87  
July            2020  - January        2024          5.79                      5.79  
July            2024                                 5.79        56.12        61.91  
January         2025  - July           2033          4.38                      4.38  
November        2033                                 2.92       174.79       177.71  
</TABLE>



Pennsylvania IM-IT Trust

Monthly


<TABLE>
<CAPTION>
                                               Estimated     Estimated    Estimated   
Distribution Dates                             Interest      Principal    Total       
(Each Month)                                   Distribution  Distribution Distribution
<S>           <C>      <C>            <C>      <C>           <C>          <C>         
December         1995                          $      6.12                $     6.12  
January          1996  - June            2005         4.37                      4.37  
July             2005                                 4.37   $   165.45       169.82  
August           2005  - November        2005         3.52                      3.52  
December         2005                                 3.09       167.11       170.20  
January          2006  - June            2006         2.72                      2.72  
July             2006                                 2.72        62.87        65.59  
August           2006  - February        2020         2.41                      2.41  
March            2020                                 2.41        33.09        35.50  
April            2020  - May             2022         2.41                      2.41  
June             2022                                 2.41       132.36       134.77  
July             2022  - July            2023         1.81                      1.81  
August           2023                                 1.81       150.56       152.37  
September        2023  - May             2025         1.15                      1.15  
June             2025                                  .82       132.37       133.19  
July             2025  - August          2025          .53                       .53  
September        2025                                  .53       132.36       132.89  
</TABLE>


Semi-annual


<TABLE>
<CAPTION>
Distribution Dates                            Estimated      Estimated    Estimated   
(Each January and July                        Interest       Principal    Total       
Unless Otherwise Indicated)                   Distribution   Distribution Distribution
<S>           <C>      <C>           <C>      <C>            <C>          <C>         
January          1996                         $      10.56                $    10.56  
July             1996  - January        2005         26.40                     26.40  
July             2005                                26.40   $   165.45       191.85  
December         2005                                            167.11       167.11  
January          2006                                20.01                     20.01  
July             2006                                16.42        62.87        79.29  
January          2007  - January        2020         14.58                     14.58  
March            2020                                             33.09        33.09  
July             2020  - January        2022         14.58                     14.58  
June             2022                                            132.36       132.36  
July             2022                                13.98                     13.98  
January          2023  - July           2023         10.95                     10.95  
August           2023                                            150.56       150.56  
January          2024                                 7.58                      7.58  
July             2024  - January        2025          6.91                      6.91  
June             2025                                            132.37       132.37  
July             2025                                 5.96                      5.96  
September        2025                                 1.06       132.36       133.42  
</TABLE>
    



No person is authorized to give any information or to make any representations
not contained in this Prospectus; and any information or representation not
contained herein must not be relied upon as having been authorized by the
Fund, the Sponsor or the Underwriters. This Prospectus does not constitute an
offer to sell, or a solicitation of an offer to buy, securities in any state
to any person to whom it is not lawful to make such offer in such state.


<TABLE>
<CAPTION>
Title                                                       Page                                                         
<S>                                                        <C> 
INTRODUCTION                                                2
SUMMARY OF ESSENTIAL FINANCIAL INFORMATION                  3 
UNITHOLDER EXPLANATIONS                                     5 
Settlement of Bonds in the Trusts                           5 
The Fund                                                    5 
Objectives and Securities Selection                         6 
Risk Factors                                                8 
Replacement Bonds                                          10  
Bond Redemptions                                           11  
Distributions                                              12  
Change of Distribution Option                              12  
Certificates                                               12  
Estimated Current Returns and Estimated Long-Term Returns  13  
Interest Earning Schedule                                  13  
Calculation of Estimated Net Annual Interest Income        13  
Accrued Interest                                           14  
Accrued Interest                                           14  
Public Offering                                            14  
General                                                    14  
Offering Price                                             16  
Market for Units                                           17  
Distributions of Interest and Principal                    18  
Reinvestment Option                                        18  
Redemption of Units                                        19  
Reports Provided                                           20  
Insurance on the Bonds in the Insured Trusts               21
     
COLORADO IM-IT TRUST                                       28  
NEW JERSEY IM-IT TRUST                                     34  
PENNSYLVANIA IM-IT TRUST                                   40  
    
NOTES TO PORTFOLIOS                                        47  
UNDERWRITING                                               49  
TRUST ADMINISTRATION                                       51  
Fund Administration and Expenses                           51  
Sponsor                                                    51  
Compensation of Sponsor and Evaluator                      56  
Trustee                                                    56  
Trustee's Fee                                              57  
Portfolio Administration                                   58
Sponsor Purchases of Units                                 58  
Insurance Premiums                                         58  
Miscellaneous Expenses                                     59  
General                                                    59  
Amendment or Termination                                   59  
Limitation on Liabilities                                  60  
Unit Distribution                                          60  
Sponsor and Underwriter Compensation                       61  
OTHER MATTERS                                              62  
Legal Opinions                                             62  
Independent Certified Public Accountants                   62  
FEDERAL TAX STATUS                                         62  
DESCRIPTION OF SECURITIES RATINGS                          65  
REPORT OF INDEPENDENT CERTIFIED PUBLIC                       
  ACCOUNTANTS                                              67    
STATEMENTS OF CONDITION                                    68  
EQUIVALENT TAXABLE ESTIMATED CURRENT RETURN                  
  TABLES                                                   69    
ESTIMATED CASH FLOWS TO UNITHOLDERS                        71  
</TABLE>




This Prospectus contains information concerning the Fund and the Sponsor, but
does not contain all of the information set forth in the registration
statements and exhibits relating thereto, which the Fund has filed with the
Securities and Exchange Commission, Washington, D.C., under the Securities Act
of 1933 and the Investment Company Act of 1940, and to which reference is
hereby made. 

PROSPECTUS
   
October 16, 1995

Insured Municipals
Income Trust, 186th
Insured Multi-Series

Colorado IM-IT 77
New Jersey IM-IT 106
Pennsylvania IM-IT 208
    






A Wealth of Knowledge A Knowledge of Wealth(sm) 

VAN KAMPEN AMERICAN CAPITAL


One Parkview Plaza
Oakbrook Terrace, Illinois 60181

2800 Post Oak Boulevard
Houston, Texas 77056

Please retain this Prospectus for future reference.

                   Contents of Registration Statement
     
     This Amendment of Registration Statement comprises the following
papers and documents:

     The facing sheet
     The Cross-Reference sheet
     The Prospectus
     The signatures
     The consents of independent public accountants, ratings
        services and legal counsel

The following exhibits:

1.1  Copy of Trust Agreement.

1.5  Copy of Agreement Among Underwriters.

3.1  Opinion  and  consent of counsel as to legality of securities  being
     registered.

3.2  Opinion  of counsel as to Federal and Colorado income tax status  of
     securities being registered.

3.3  Opinion  and consent of counsel as to income tax status of the  Fund
     under New York law.

3.4  Opinion  and consent of counsel as to income tax status of  the  New
     Jersey IM-IT under New Jersey law.

3.5  Opinion  and  consent  of counsel as to income  tax  status  of  the
     Pennsylvania IM-IT under Pennsylvania law.

4.1  Consent of Interactive Data Services, Inc.

4.2  Consent of Standard & Poor's.

4.3  Consent of Grant Thornton LLP.

4.4  Financial Data Schedules

                                 Signatures
     
     The Registrant, Insured Municipals Income Trust, 186th Insured Multi-
Series  hereby identifies Insured Municipals Income Trust,  77th  Insured
Multi-Series  and Insured Municipals Income Trust and Investors'  Quality
Tax-Exempt  Trust,  Multi-Series 189 for purposes of the  representations
required  by  Rule  487  and  represents the  following:   (1)  that  the
portfolio  securities  deposited in the series as to  the  securities  of
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 financial  information
for, the series with respect to the securities of 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,  Insured Municipals Income Trust, 186th Insured  Multi-Series
has duly caused this Amendment to the Registration Statement to be signed
on  its behalf by the undersigned, thereunto duly authorized, in the City
of Chicago and State of Illinois on the 16th day of October, 1995.

                                    Insured Municipals Income Trust
                                      186th Insured Multi-Series
                                    
                                    By VAN KAMPEN AMERICAN CAPITAL
                                       DISTRIBUTORS, INC.
                                    
                                    
                                    By Sandra A. Waterworth
                                       Vice President
     
     Pursuant  to  the requirements of the Securities Act of  1933,  this
Amendment  to  the Registration Statement has been signed  below  by  the
following persons in the capacities indicated and on October 16, 1995.

 Signature                                       Title

Don G. Powell       Chairman and Chief Executive  )
                    Officer                       )

William R. Rybak    Senior Vice President and     )
                      Chief Financial Officer     )

Ronald A. Nyberg    Director                      )

William R. Molinari Director                      )
                                            Sandra A. Waterworth
                                            (Attorney-in-fact*)

*An  executed  copy of each of the related powers of attorney  was  filed
with  the  Securities  and Exchange Commission  in  connection  with  the
Registration  Statement  on Form S-6 of Insured Municipals  Income  Trust
and  Investors' Quality Tax-Exempt Trust, Multi-Series 203 (File No.  33-
65744)  and  with  the  Registration Statement on  Form  S-6  of  Insured
Municipals  Income Trust, 170th Insured Multi-Series (File No.  33-55891)
and the same are hereby incorporated herein by this reference.


                                                              Exhibit 1.1
                     Insured Municipals Income Trust
                       186th Insured Multi-Series
                                    
                             Trust Agreement
                                    
                                                 Dated:  October 16, 1995
     
     This   Trust   Agreement   between  Van  Kampen   American   Capital
Distributors, Inc., as Depositor, American Portfolio Evaluation Services,
a  division of Van Kampen American Capital Investment Advisory Corp.,  as
Evaluator,  and  The  Bank of New York, as Trustee,  sets  forth  certain
provisions in full and incorporates other provisions by reference to  the
document entitled "Standard Terms and Conditions of Trust, For Van Kampen
American  Capital Distributors, Inc. Tax-Exempt Trust,  Dated  March  16,
1995"  (herein called the "Standard Terms and Conditions of Trust"),  and
such  provisions  as  are set forth in full and such  provisions  as  are
incorporated by reference constitute a single instrument.  All references
herein  to  Articles  and Sections are to Articles and  Sections  of  the
Standard Terms and Conditions of Trust.
                                    
                                    
                            Witnesseth That:
     
     In consideration of the premises and of the mutual agreements herein
contained, the Depositor and the Trustee agree as follows:
                                    
                                    
                                 Part I
                                    
                                    
                 Standard Terms and Conditions of Trust
     
     Subject  to  the  provisions of Part II hereof, all  the  provisions
contained  in  the  Standard Terms and Conditions  of  Trust  are  herein
incorporated by reference in their entirety and shall be deemed to  be  a
part  of  this instrument as fully and to the same extent as though  said
provisions had been set forth in full in this instrument.
                                    
                                    
                                 Part II
                                    
                                    
                  Special Terms and Conditions of Trust
     
     The following special terms and conditions are hereby agreed to:
     
          (a)    The  Bonds  defined in Section  1.01(4)  listed  in  the
     Schedules hereto have been deposited in the Trusts under this  Trust
     Agreement.
     
          (b)   The fractional undivided interest in and ownership of the
     various  Trusts represented by each Unit thereof is the  amount  set
     forth  under  "Summary of Essential Financial Information-Fractional
     Undivided Interest in the Trust per Unit" in the Prospectus.
     
          (c)    The approximate amounts, if any, which the Trustee shall
     be  required to advance out of its own funds and cause to be paid to
     the  Depositor pursuant to Section 3.05 shall be the amount per Unit
     that the Trustee agreed to reduce its fee or pay Trust expenses  set
     forth  in the footnotes to the "Per Unit Information" for each Trust
     in  the  Prospectus times the number of units in such Trust referred
     to in Part II (b) of this Trust Agreement.
     
         (d)   The First General Record Date and the amount of the second
     distribution of funds from the Interest Account of each Trust  shall
     be the record date for the Interest Account and the amount set forth
     under "Per Unit Information" for each Trust in the Prospectus.
     
          (e)    The  First Settlement Date shall be the date  set  forth
     under "Summary of Essential Financial Information - First Settlement
     Date" in the Prospectus.
     
          (f)    Any monies held to purchase "when-issued" bonds will  be
     held in non-interest bearing accounts.
     
          (g)    The  Evaluation Time for purpose of  sale,  purchase  or
     redemption of Units shall be 4:00 P.M. Eastern Time.
     
          (h)    As  set  forth  in Section 3.05, the  Record  Dates  and
     Distribution Dates for each Trust are those dates set forth  in  the
     section entitled "Per Unit Information" for each Trust as appears in
     the Prospectus.
     
          (i)    As  set  forth  in Section 3.15, the Evaluator's  Annual
     Supervisory  Fee  shall  be that amount set  forth  in  "Summary  of
     Essential Financial Information-Evaluator's Annual Supervisory  Fee"
     in the Prospectus.
     
          (j)    As  set  forth  in Section 4.03, the Evaluator's  Annual
     Evaluation Fee shall be that amount, and computed on that basis, set
     forth  in  "Summary  of  Essential Financial Information-Evaluator's
     Annual Evaluation Fee" in the Prospectus.
     
          (k)    The  Trustee's annual compensation as  set  forth  under
     Section  6.04, under each distribution plan shall be that amount  as
     specified  in  the Prospectus under the section entitled  "Per  Unit
     Information"  for each Trust and will include a fee  to  induce  the
     Trustee to advance funds to meet scheduled distributions.
     
          (l)   The sixth paragraph of Section 3.05 is hereby revoked and
     replaced by the following paragraph:
          
                      Unitholders   desiring   to   receive   semi-annual
          distributions and who purchase their Units prior to the  Record
          Date  for  the  second distribution under the monthly  plan  of
          distribution  may  elect  at the time of  purchase  to  receive
          distributions on a semi-annual basis by notice to the  Trustee.
          Such  notice  shall  be  effective with respect  to  subsequent
          distributions until changed by further notice to  the  Trustee.
          Unitholders  desiring to receive semi-annual distributions  and
          who  purchse their Units prior to the Record Date for the first
          distribution  may  elect  at the time of  purchase  to  receive
          distributions on a semi-annual basis by notice to the  Trustee.
          Such  notice  shall  be  effective with respect  to  subsequent
          distributions until changed by further notice to  the  Trustee.
          Changes in the plan of distribution will become effective as of
          opening of business on the day after the next succeeding  semi-
          annual  Record Date and such distributions will continue  until
          further notice.
     
          (m)    Sections  8.02(d)  and 8.02(e) are  hereby  revoked  and
     replaced with the following:
          
               (d)    distribute  to each Unitholder of such  Trust  such
          holder's pro rata share of the balance of the Interest  Account
          of such Trust;
          
               (e)    distribute  to each Unitholder of such  Trust  such
          holder's pro rata share of the balance of the Principal Account
          of such Trust; and
     
     
          
          In  Witness  Whereof, Van Kampen American Capital Distributors,
     Inc.  has caused this Trust Agreement to be executed by one  of  its
     Vice  Presidents or Assistant Vice Presidents and its corporate seal
     to  be  hereto affixed and attested by its Secretary or one  of  its
     Vice   Presidents  or  Assistant  Secretaries,  American   Portfolio
     Evaluation  Services,  a  division of Van  Kampen  American  Capital
     Investment  Advisory  Corp., has caused  this  Trust  Indenture  and
     Agreement  to  be  executed by its President  or  one  of  its  Vice
     Presidents and its corporate seal to be hereto affixed and  attested
     to by its Secretary, its Assistant Secretary or one of its Assistant
     Vice  Presidents  and The Bank of New York, has  caused  this  Trust
     Agreement  to  be  executed by one of its Vice  Presidents  and  its
     corporate  seal to be hereto affixed and attested to by one  of  its
     Vice  Presidents, Assistant Vice Presidents or Assistant Treasurers;
     all as of the day, month and year first above written.

                                    Van Kampen American Capital
                                    Distributors, Inc.
                                    
                                    
                                    By  Sandra A. Waterworth
                                        Vice President
(Seal)
Attest:
By  Gina M. Scumaci
    Assistant Secretary

                                    American Portfolio Evaluation
                                    Services, a division of Van Kampen
                                    American Capital Investment
                                    Advisory Corp.
                                    
                                    
                                    By  Dennis J. Mcdonnell
                                        President
(Seal)
Attest:
By Scott E. Martin
   Secretary

                                    The Bank Of New York
                                    
                                    By  Jeffrey Bieselin
                                        Vice President
(Seal)
Attest:
By  Norbert Loney
    Assistant Treasurer

                     
                     Schedules To Trust Agreement
                     Securities Initially Deposited
                                   In
       Insured Municipals Income Trust, 186th Insured Multi-Series

(Note:  Incorporated herein and made a part hereof as indicated below are
        the corresponding "Portfolios" of each of the Trusts as set forth 
        in the Prospectus.)

                                                               Exhibit 1.5

                                                      Dated:  June 1, 1992


                                   
                   Master Agreement Among Underwriters
                 For Unit Investment Trusts Sponsored by
             Van Kampen American Capital Distributors, Inc.
                                    

Van Kampen American Capital Distributors, Inc.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181

Gentlemen:

     1.   The Trust.  We understand that you, Van Kampen American Capital
Distributors, Inc. (the "Sponsor"), are entering into this agreement (the
"Agreement")  in  counterparts  with  us  and  other  firms  who  may  be
underwriters for issues of various series of unit investment  trusts  for
which  you  will  act  as Sponsor.  This Agreement  shall  apply  to  any
offering  after May 1, 1992 of units of fractional undivided interest  in
such various series unit investment trusts in which we elect to act as an
underwriter   (underwriters  with  respect  to  each  such  trust   being
hereinafter  called "Underwriters") after receipt of a  notice  from  you
stating the name and size of the trust and that our participation  as  an
Underwriter  in the proposed offering shall be subject to the  provisions
of  this  Agreement.   The  issuer of the units of  fractional  undivided
interests in a series of a unit investment trust offered in any  offering
of  units made pursuant to this Agreement is hereinafter referred  to  as
the  "Trust" and the reference to "Trust" in this Agreement applies  only
to  such  Trust,  and  such units of such Trust offered  are  hereinafter
called  the  "Units".   Each Trust is or will be registered  as  a  "unit
investment  trust" under the Investment Company Act of  1940  (the  "1940
Act")  by appropriate filings with the Securities and Exchange Commission
(the  "Commission").  Additionally, each Trust is or will  be  registered
with the Commission under the Securities Act of 1933 (the "1933 Act")  on
Form  S-6 or its successor forms, including a proposed form of prospectus
(the "Preliminary Prospectus").
     
     The  registration statement as finally amended and  revised  at  the
time  it  becomes  effective is herein referred to as  the  "Registration
Statement"  and  the  related prospectus is herein  referred  to  as  the
"Prospectus",  except that if the prospectus filed by the Trust  pursuant
to  Rule  424(b) under the 1933 Act shall differ from the  prospectus  on
file  at the time the Registration Statement shall become effective,  the
term  "Prospectus" shall refer to the prospectus filed pursuant  to  Rule
424(b) from and after the date on which it shall have been filed.
     
     The following provisions of this Agreement shall apply separately to
each individual offering of Units by a Trust.
     
     We  understand  that as of the date upon which  we  have  agreed  to
underwrite  Units of the Trust the Commission shall not have  issued  any
order  preventing  or  restraining the use of any Preliminary  Prospectus
and,  further,  that  each Preliminary Prospectus shall  conform  in  all
material  respects to the requirements of the 1933 Act and the Rules  and
Regulations thereunder and, as of its date, shall not include any  untrue
statement  of a material fact or omit to state a material fact  necessary
to  make the statements therein not misleading; and when the Registration
Statement becomes effective, it and the Prospectus, and any amendments or
supplements thereto, will contain all statements that are required to  be
stated  therein  in  accordance with the  1933  Act  and  the  Rules  and
Regulations thereunder and will in all material respects conform  to  the
requirements  of  the 1933 Act and the Rules and Regulations  thereunder,
and  neither  the  Registration Statement nor  the  Prospectus,  nor  any
amendment or supplement thereto, will contain any untrue statement  of  a
material  fact  or omit to state a material fact required  to  be  stated
therein  or  necessary  to  make the statements therein  not  misleading;
provided,  however, that you make no representation  or  warranty  as  to
information contained in or omitted from any Preliminary Prospectus,  the
Registration   Statement,  the  Prospectus  or  any  such  amendment   or
supplement,  in reliance upon and in conformity with, written information
furnished to you by or on behalf of any Underwriter specifically for  use
in the preparation thereof.

      2.    Designation and Authority of Representative.  You are  hereby
authorized  to  act  as  our  representative  (the  "Representative")  in
connection with all matters to which this Agreement relates and  to  take
the  action provided herein to be taken by you as you may otherwise  deem
necessary or advisable.  We understand that we have no obligations  under
this  Agreement  with  respect to any Trust in which  we  choose  not  to
participate as an Underwriter.
     
     You  will be under no liability to us for any act or omission except
for  obligations  expressly assumed by you herein and no  obligations  on
your  part  will  be  implied  or  inferred  herefrom.   The  rights  and
liabilities of the respective parties hereto are several and  not  joint,
and  nothing  herein  or hereunder will constitute  then  a  partnership,
association or separate entity.

      3.   Profit or Loss in Acquisition of Securities.  It is understood
that the acquisition of securities (the "Securities") for deposit in  the
portfolio  of  the Trust shall be at your cost and risk.  We  acknowledge
that you will share with us any net deposit profits in the amounts and to
the   extent,   if   any,  indicated  under  "Sponsor   and   Underwriter
Compensation"  in  the Prospectus.  For the purposes of  determining  the
number of Units underwritten, we understand that we will be credited  for
that  number of Units set forth opposite our name in the section entitled
"Underwriting" in the prospectus.
     
     We  agree  that  you  shall have no liability (as Representative  or
otherwise)   with   respect  to  the  issue  form,  validity,   legality,
enforceability,  value  of, or title to the Securities,  except  for  the
exercise  of  due care in determining the genuineness of such  Securities
and  the  conformance  thereof with the descriptions  and  qualifications
appearing in the Prospectus.

      4.   Purchase of Units.  Promptly after you make a determination to
offer  Units  of  a  Trust and you inquire as to  whether  we  desire  to
participate  in  such offering, we will advise you  promptly  as  to  the
number  of  Units  which  we will purchase or  of  our  decision  not  to
participate in such offering.  Such advice may be written or  oral.   The
delivery to the Sponsor of a completed Schedule A to this Agreement shall
constitute  adequate written advice.  Oral advice shall  be  binding  but
shall  be  promptly  confirmed in writing by us by  means  of  telegraph,
telegram  or other form of wire or facsimile transmission.  Such  written
confirmation  shall contain the information requested by  Schedule  A  to
this  Agreement.  You may rely on and we hereby commit on the  terms  and
conditions of this Agreement to purchase and pay for the number of  Units
of  the Trust set forth in such advice (the "Unit Commitment").  Our Unit
Commitment may be increased only by mutual agreement between us  and  you
at  any  time prior to the date as of which the Trust Agreement  for  the
Trust  is  executed (the "Date of Deposit").  We agree that you  in  your
sole discretion reserve the right to decrease our Unit Commitment at  any
time  prior  to the Date of Deposit and if you so elect to  make  such  a
decrease,  you  will  notify  us of such an  election  by  telephone  and
promptly confirm the same in writing.
     
     The  price  to  be paid for such Units shall be the Public  Offering
Price per Unit (as defined in the Prospectus) as first determined on  the
Date  of  Deposit or such later determination on such Date of Deposit  as
you  shall advise us, less the sum per Unit indicated under "Sponsor  and
Underwriter  Compensation" in the Prospectus.  Further, each  Underwriter
who  underwrites  that  number  of Units  indicated  under  "Sponsor  and
Underwriter Compensation" in the Prospectus will receive from the Sponsor
that  additional  compensation  indicated  under  such  section  of   the
Prospectus for each Unit it underwrites, providing the Trust size  is  in
excess  of that number of Units, if any, indicated under such section  of
the  Prospectus.  At the Date of Deposit, we will become the owner of the
Units  and  be  entitled to the benefits (except for  interest,  if  any,
accruing from the Date of Deposit to the First Settlement Date)  as  well
as  the  risks inherent therein.  We acknowledge that those  persons,  if
any, named in the Prospectus under "Sponsor and Underwriter Compensation"
are  Managing  or  Co-Managing Underwriters of the  Trust,  as  indicated
therein, and we acknowledge that those persons specifically named therein
will receive as additional compensation those respective per Unit amounts
set forth in such section of the Prospectus.
     
     You  are  authorized  to  retain custody  of  our  Units  until  the
Registration  Statement relating thereto has become effective  under  the
1933 Act and you shall have received payment from us for such Units.
     
     You  are  authorized  to  file  an amendment  to  said  Registration
Statement  describing  the  Securities and furnishing  information  based
thereon or relating thereto and any further amendments or supplements  to
the Registration Statement or Prospectus which you may deem necessary  or
advisable.  We will furnish to you upon your request such information  as
will be required to insure that the Registration Statement and Prospectus
are  current  insofar as they relate to us and we thereafter continue  to
furnish you with such information as may be necessary to keep current and
correct the information previously supplied.
     
     We  understand that the Trust will also take action with respect  to
the  offering  and  sale of Units in accordance  with  the  Blue  Sky  or
securities laws of certain states in which it is proposed that the  Units
may be offered and sold.

      5.    Public Offering.  You agree that you will advise us  promptly
when  the Registration Statement has become effective, and we agree  that
when  we are advised that the Units are released for public offering,  we
will make a public offering thereof by means of the Prospectus under  the
1933  Act,  as  amended, which describes the deposit  of  Securities  and
related  information.   The  Public Offering  Price  and  the  terms  and
conditions of the public offering shall be as set forth in the Prospectus
and  shall rely with respect to the offering price of the Securities upon
the  determination  of  the Evaluator named in  the  Prospectus.   Public
advertisement of the offering, if any, shall be made by you on behalf  of
the  Underwriters  on such date as you shall determine.   We  agree  that
before  we  use any Trust advertising material which we have created,  we
will obtain your prior approval to use such advertising materials.

      6.    Public  Offering Price.  We agree that each  day  while  this
Agreement  is in effect and the evaluation of the Trust is  made  by  the
Evaluator  named  in  the  Prospectus,  we  will  contact  you  for  such
evaluation and of the resultant Public Offering Price for the purpose  of
the offering and sale of the respective Units to the public.  We agree as
required by Section 22(d) of the 1940 Act to offer and sell our Units  at
the current Public Offering Price described in the Prospectus.

      7.    Permitted Transactions.  It is agreed that part or all of the
Units purchased by us may be sold to dealers, or other entities with whom
we  can legally grant a concession or agency commission, only at the then
effective  Public  Offering Price, less the concession described  in  the
Prospectus.
     
     From  time  to  time prior to the termination of this Agreement,  at
your  Request, we will advise you of the number of our Units which remain
unsold  and,  at  your request, we agree to deliver to you  any  of  such
unsold  Units to be sold for our account to retail accounts or, less  the
concession or agency commission then effective, to dealers or others.
     
     If  prior to the termination of this Agreement, or such earlier date
as you may determine and advise us thereof in writing, you shall purchase
or  contract to purchase any of our Units or any Units issued in exchange
therefor, in the open market or otherwise, or if any such Units shall  be
tendered to the Trustee for redemption because not effectively placed for
investment by us, we agree to repurchase such Units at a price  equal  to
the   total  cost  of  such  purchase,  including  accrued  interest  and
commissions, if any, and transfer taxes on redelivery.  Regardless of the
amount  paid on the repurchase of any such Units, it is agreed that  they
may be resold by us only at the then effective Public Offering Price.
     
     Until the termination of this Agreement, we agree that we will  make
no  purchase  of  Units  other than (i) purchases provided  for  in  this
Agreement, (ii) purchases approved by you and (iii) purchases  as  broker
in executing unsolicited orders.

      8.   Compliance With Commission Order.  We hereby agree as follows:
(a)  we will refund all sales charges to purchasers of Units from  us  or
any  dealer participating in the distribution of Units who purchased such
Units  from us if, within ninety days from the time that the Registration
Statement  of the respective Units under the 1933 Act shall  have  become
effective, (i) the net worth of the trust shall be reduced to  less  than
20% of the principal amount of Securities originally deposited therein or
(ii)  the  Trust  shall have been terminated; (b) you  may  instruct  the
Trustee on the Date of Deposit that, in the event that redemption by  any
Underwriters of Units constituting part of any unsold allotment of  Units
shall  result  in the Trust having a net worth of less than  40%  of  the
principal amount of Securities originally deposited therein, the  Trustee
shall  terminate the Trust in the manner provided in the Trust  Indenture
and   Agreement  (as  defined  in  the  Prospectus)  and  distribute  the
Securities  and other assets of the Trust pursuant to the  provisions  of
the  Trust  Indenture and Agreement; and (c) in the event that the  Trust
shall  have  been  terminated pursuant to (b) above, we will  refund  any
sales  charges to any purchaser of such Units who purchased from  us,  or
purchased  from a dealer participating in the distribution of such  Units
who purchased such Units from us.  We authorize you to charge our account
for all refunds of sales charges in respect to our Units.

      9.   Substitution of Underwriters.  We authorize you to arrange for
the  substitution hereunder of other persons, who may include you and us,
for  all  or  any part of the commitment of any nondefaulting Underwriter
with  the  consent of such Underwriter, and of any defaulting Underwriter
without  the consent thereof, upon such terms and conditions as  you  may
deem  advisable, provided that the number of Units to be purchased by  us
shall  not  be  increased without our consent and that such  substitution
shall  not  in any way affect the liability of any defaulting Underwriter
to  the other Underwriters for damages from such default, nor relieve any
other  Underwriter of any obligation under this Agreement.  The  expenses
chargeable to the account of any defaulting Underwriter and not paid  for
by  it or by a person substituted for such Underwriter and any additional
losses  or expenses arising from such default shall be considered  to  be
expenses  under this Agreement and shall be charged against the  accounts
of  the  nondefaulting  Underwriters in proportion  to  their  respective
commitments.

     10.    Termination.  This Agreement shall terminate with respect  to
each  Trust which we have agreed to underwrite 30 days after the date  on
which  the  public  offering  of the Units  of  such  Trust  is  made  in
accordance  with  Section  5  hereof unless  sooner  terminated  by  you,
provided  that  you may extend this Agreement for not  more  than  eleven
successive  periods of 30 days each upon notice to us  and  each  of  the
other Underwriters.
     
     Notwithstanding any settlement on the termination of this Agreement,
we  agree to pay our share of any amount payable on account of any claim,
demand  or  liability which may be asserted against the Underwriters,  or
any  of  them,  based  on the claim that the Underwriters  constitute  an
association,  unincorporated business or other separate  entity  and  our
share  of  any  expenses incurred by you in defending  against  any  such
claim,  demand or liability.  We also agree to pay any stamp taxes  which
may  be  assessed and paid after such settlement on account of any  Units
received or sold hereunder for our account.
     
     Notwithstanding any termination of this Agreement, no sales  of  the
Units  shall  be  made  by us at any time except in conformity  with  the
provisions of Section 22(d) of the 1940 Act.

     11.   Default by Other Underwriters.  Default by any one or more  of
the other Underwriters in respect of their several obligations under this
Agreement  shall  neither release you nor us from any of  our  respective
obligations hereunder.

     12.    Notices.  Notices hereunder shall by deemed to have been duly
given  if mailed or telegraphed to us at our address set forth below,  in
the  case  of notices to us, or to you at your address set forth  at  the
head of this Agreement, in the case of notices to you.

    13.   Net Capital.  You represent that you, and we represent that we,
are   in  compliance  with  the  capital  requirements  of  Rule  15c-3-1
promulgated  by the Commission under the Securities and Exchange  Act  of
1934,  and we may, in accordance with and pursuant to such Rule  15c-3-1,
agree  to  purchase the amount of Units to be purchased by  you  and  us,
respectively, under the Agreement.

     14.    Miscellaneous.   We confirm that we  are  a  member  in  good
standing of the National Association of Securities Dealers, Inc.
     
     We  confirm  that  we  will take reasonable  steps  to  provide  the
Preliminary  Prospectus or final Prospectus to any person making  written
request  therefor  to us and to make the Preliminary  Prospectus  or  the
final Prospectus available to each person associated with us expected  to
solicit   customers'  orders  for  the  Units  prior  to  the   effective
registration date and the final Prospectus if he is expected to offer the
Units  after the effective date.  We understand that you will  supply  us
upon  our  request with sufficient copies of such prospectuses to  comply
with the foregoing.
     
     This  Agreement  is  being executed by us and delivered  to  you  in
duplicate.  Upon your confirmation hereof and of agreements in  identical
form with each of the other Underwriters, this Agreement shall constitute
a valid and binding contract between us.
                                    
                                    Very truly yours,
                                    
                                    
                                    
         
Confirmed as of the date          Indicated below our firm
set forth at the                  name and address exactly as we wish
head of this Agreement            to appear  in the Prospectus
                                   
VAN KAMPEN AMERICAN CAPITAL DISTRIBUTORS, INC.

By____________________________     ____________________________________

Title__________________________    ____________________________________
 
                                   ____________________________________

                                                               Exhibit 3.1
                           Chapman and Cutler
                         111 West Monroe Street
                        Chicago, Illinois  60603
                                    

                            October 16, 1995
                                    
                                    
                                    
Van Kampen American Capital Distributors, Inc.
One Parkview Plaza
Oakbrook Terrace, Illinois  60181
     
     
     Re:Insured Municipals Income Trust, 186th Insured Multi-Series

Gentlemen:
     
     We   have   served  as  counsel  for  Van  Kampen  American  Capital
Distributors, Inc., as Sponsor and Depositor of Insured Municipals Income
Trust,  186th  Insured  Multi-Series  (hereinafter  referred  to  as  the
"Fund"), in connection with the preparation, execution and delivery of  a
Trust  Agreement  dated  October 16, 1995  between  Van  Kampen  American
Capital  Distributors, Inc., as Depositor, American Portfolio  Evaluation
Services,  a division of Van Kampen American Capital Investment  Advisory
Corp.,  as  Evaluator, and The Bank of New York, as Trustee, pursuant  to
which  the Depositor has delivered to and deposited Bonds listed  in  the
Schedules to the Trust Agreement with the Trustee and pursuant  to  which
the  Trustee has issued to or on the order of the Depositor a certificate
or  certificates representing Units of fractional undivided  interest  in
and ownership of the several Trusts of said Fund (hereinafter referred to
as the "Units") created under said Trust Agreement.
     
     In connection therewith, we have examined such pertinent records and
documents  and  matters of law as we have deemed necessary  in  order  to
enable us to express the opinions hereinafter set forth.
     
     Based upon the foregoing, we are of the opinion that:
     
           1.   The execution and delivery of the Trust Agreement and the
     execution and issuance of certificates evidencing the Units  in  the
     several Trusts of the Fund have been duly authorized; and
     
           2.    The  certificates evidencing the Units  in  the  several
     Trusts of the Fund when duly executed and delivered by the Depositor
     and   the  Trustee  in  accordance  with  the  aforementioned  Trust
     Agreement,  will  constitute valid and binding obligations  of  such
     Trusts and the Depositor in accordance with the terms thereof.
     
     We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement (File No. 33-63127) relating to the Units referred
to  above and to the use of our name and to the reference to our firm  in
said Registration Statement and in the related Prospectus.
                                   
                                    Respectfully submitted,
                                    
                                    
                                    
                                    Chapman and Cutler

MJK/cjw

                                                  
                                                        Exhibit 3.2
                                    
                           Chapman and Cutler
                         111 West Monroe Street
                        Chicago, Illinois  60603
                                    
                                    
                            October 16, 1995
                                    
                                    
                                    
Van Kampen American Capital Distributors, Inc.
One Parkview Plaza
Oakbrook Terrace, Illinois  60181

The Bank of New York
101 Barclay Street
New York, New York 10286
     
     
     Re:Insured Municipals Income Trust, 186th Insured Multi-Series

Gentlemen:
     
     We   have   acted  as  counsel  for  Van  Kampen  American   Capital
Distributors, Inc., Depositor of Insured Municipals Income  Trust,  186th
Insured  Multi-Series (the "Fund"), in connection with  the  issuance  of
Units of fractional undivided interest in the several Trusts of said Fund
under  a Trust Agreement dated October 16, 1995 (the "Indenture") between
Van  Kampen  American Capital Distributors, Inc., as Depositor,  American
Portfolio Evaluation Services, a division of Van Kampen American  Capital
Investment  Advisory Corp., as Evaluator, and The Bank of  New  York,  as
Trustee.
     
     In this connection, we have examined the Registration Statement, the
form  of Prospectus proposed to be filed with the Securities and Exchange
Commission, the Indenture and such other instruments and documents as  we
have   deemed   pertinent.   Based  upon  the  foregoing  and   upon   an
investigation of such matters of law as we consider to be applicable,  we
are of the opinion that, under existing Federal income tax law:
     
          (i)   Each Trust is not an association taxable as a corporation
     but will be governed by the provisions of subchapter J (relating  to
     trusts) of chapter 1, Internal Revenue Code of 1986 (the "Code").
     
         (ii)    Each Unitholder will be considered as owning a pro  rata
     share  of each asset of the respective Trust in the proportion  that
     the  number  of Units of such Trust held by him bears to  the  total
     number  of  Units  outstanding  of such  Trust.   Under  subpart  E,
     subchapter J of chapter 1 of the Code, income of each Trust will  be
     treated as income of each Unitholder of the respective Trust in  the
     proportion described, and an item of Trust income will have the same
     character in the hands of a Unitholder as it would have in the hands
     of  the  Trustee.  Accordingly, to the extent that the income  of  a
     Trust  consists  of  interest excludable  from  gross  income  under
     Section 103 of the Code, such income will be excludable from Federal
     gross  income of the Unitholders, except in the case of a Unitholder
     who  is a substantial user (or a person related to such user)  of  a
     facility  financed  through issuance of any  industrial  development
     bonds  or  certain  private activity bonds held  by  the  respective
     Trust.   In  the  case  of such Unitholder (and no  other)  interest
     received  with respect to his Units attributable to such  industrial
     development  bonds or such private activity bonds is  includable  in
     his gross income.  In the case of certain corporations, interest  on
     the  Bonds  is  included  in computing the alternative  minimum  tax
     pursuant  to Section 56(c) of the Code, the environmental  tax  (the
     "Superfund Tax") imposed by Section 59A of the Code, and the  branch
     profits tax imposed by Section 884 of the Code with respect to  U.S.
     branches of foreign corporations.
     
        (iii)    Gain  or  loss will be recognized to a  Unitholder  upon
     redemption  or sale of his Units.  Such gain or loss is measured  by
     comparing the proceeds of such redemption or sale with the  adjusted
     basis   of  the  Units  represented  by  his  Certificate.    Before
     adjustment, such basis would normally be cost if the Unitholder  had
     acquired  his Units by purchase, plus his aliquot share of  advances
     by the Trustee to the Trust to pay interest on Bonds delivered after
     the  Unitholder's settlement date to the extent that  such  interest
     accrued  on  the  Bonds  during  the period  from  the  Unitholder's
     settlement  date  to  the  date such  Bonds  are  delivered  to  the
     respective Trust, but only to the extent that such advances  are  to
     be repaid to the Trustee out of interest received by such Trust with
     respect to such Bonds.  In addition, such basis will be increased by
     the  Unitholder's  aliquot  share  of  the  accrued  original  issue
     discount with respect to each Bond held by the Fund with respect  to
     which there was an original issue discount at the time the Bond  was
     issued  and  reduced by the annual amortization of bond premium,  if
     any, on Bonds held by the Trust.
     
        (iv)   If the Trustee disposes of a Trust asset (whether by sale,
     payment  on  maturity,  redemption or otherwise)  gain  or  loss  is
     recognized  to the Unitholder and the amount thereof is measured  by
     comparing the Unitholder's aliquot share of the total proceeds  from
     the  transaction with his basis for his fractional interest  in  the
     asset  disposed  of.  Such basis is ascertained by apportioning  the
     tax  basis for his Units among each of the Trust assets (as  of  the
     date  on  which his Units were acquired) ratably according to  their
     values  as  of  the  valuation date nearest the  date  on  which  he
     purchased such Units.  A Unitholder's basis in his Units and of  his
     fractional  interest  in each Trust asset must  be  reduced  by  the
     amount  of  his aliquot share of interest received by the Trust,  if
     any,  on  Bonds delivered after the Unitholder's settlement date  to
     the extent that such interest accrued on the Bonds during the period
     from  the  Unitholder's settlement date to the date such  Bonds  are
     delivered  to  the Trust, must be reduced by the annual amortization
     of  bond  premium, if any, on Bonds held by the Trust  and  must  be
     increased  by  the Unitholder's share of the accrued original  issue
     discount  with respect to each Bond which, at the time the Bond  was
     issued, had original issue discount.
     
          (v)    In  the  case of any Bond held by the  Trust  where  the
     "stated  redemption  price at maturity" exceeds the  "issue  price",
     such  excess shall be original issue discount.  With respect to each
     Unitholder,  upon  the  purchase of  his  Units  subsequent  to  the
     original issuance of Bonds held by the Trust, Section 1272(a)(7)  of
     the Code provides for a reduction in the accrued "daily portion"  of
     such  original issue discount upon the purchase of a Bond subsequent
     to  the Bond's original issue, under certain circumstances.  In  the
     case  of  any  Bond  held  by the Trust the  interest  on  which  is
     excludable  from  gross income under Section 103 of  the  Code,  any
     original issue discount which accrues with respect thereto  will  be
     treated  as  interest which is excludable from  gross  income  under
     Section 103 of the Code.
     
         (vi)   We have examined the Municipal Bond Unit Investment Trust
     Insurance Policies, if any, issued to certain of the Trusts  on  the
     Date  of  Deposit by AMBAC Indemnity Corporation, Financial Guaranty
     Insurance  Corporation or a combination thereof.  Each such  policy,
     or  a  combination of such policies, insures all bonds held  by  the
     Trustee  for  that particular Trust (other than bonds  described  in
     paragraph  (vii)) against default in the prompt payment of principal
     and  interest.   In  our opinion, any amount paid  under  each  said
     policy, or a combination of said policies, which represents maturing
     interest  on  defaulted  obligations held by  the  Trustee  will  be
     excludable from Federal gross income if, and to the same extent  as,
     such  interest would have been so excludable if paid by  the  issuer
     provided that, at the time such policies are purchased, the  amounts
     paid for such policies are reasonable, customary and consistent with
     the reasonable expectation that the issuer of the bonds, rather than
     the insurer, will pay debt service on the bonds.  Paragraph (ii)  of
     this   opinion  is  accordingly  applicable  to  insurance  proceeds
     representing maturing interest.
     
        (vii)    Certain bonds in the portfolios of certain of the Trusts
     have  been  insured by the issuers thereof against  default  in  the
     prompt  payment  of  principal  and interest.   Insurance  has  been
     obtained for such bonds, or, in the case of a commitment, the  bonds
     will  be  ultimately insured under the terms of  such  an  insurance
     policy,  which  are  designated  as  issuer  insured  bonds  on  the
     portfolio pages of the respective Trusts in the Prospectus  for  the
     Fund, by the issuer of such bonds.  Insurance obtained by the issuer
     is  effective so long as such bonds remain outstanding.  For each of
     these  bonds,  we  have  been advised that the  aggregate  principal
     amount of such bonds listed on the portfolio page for the respective
     Trust  was  acquired by the applicable Trust and  are  part  of  the
     series of such bonds listed on the portfolio page for the respective
     Trust in the aggregate principal amount listed on the portfolio page
     for  the respective Trust.  Based upon the assumption that the bonds
     acquired  by the applicable Trust are part of the series covered  by
     an  insurance  policy  or,  in the case of  a  commitment,  will  be
     ultimately  insured under the terms of such an insurance policy,  it
     is  our  opinion  that any amounts received by the applicable  Trust
     representing maturing interest on such bonds will be excludable from
     Federal  gross  income if, and to the same extent as, such  interest
     would have been so excludable if paid in normal course by the Issuer
     provided that, at the time such policies are purchased, the  amounts
     paid for such policies are reasonable, customary and consistent with
     the reasonable expectation that the issuer of the bonds, rather than
     the insurer, will pay debt service on the bonds.  Paragraph (ii)  of
     this opinion is accordingly applicable to such payment.
     
     Sections  1288 and 1272 of the Code provide a complex set  of  rules
governing  the  accrual of original issue discount.  These rules  provide
that  original issue discount accrues either on the basis of  a  constant
compound interest rate or ratably over the term of the Bond, depending on
the  date the Bond was issued.  In addition, special rules apply  if  the
purchase price of a Bond exceeds the original issue price plus the amount
of   original  issue  discount  which  accrued  to  prior  owners.    The
application of these rules will also vary depending on the value  of  the
bond  on  the  date a Unitholder acquires his Units, and  the  price  the
Unitholder pays for his Units.
     
     Because  the  Trusts  do  not include any "private  activity"  bonds
within  the  meaning  of  Section 141 of the  Code  issued  on  or  after
August 8, 1986, none of the Trust Fund's interest income shall be treated
as  an item of tax preference when computing the alternative minimum tax.
In   the  case  of  corporations,  for  taxable  years  beginning   after
December  31,  1986, the alternative minimum tax and  the  Superfund  Tax
depend upon the corporation's taxable income with certain adjustments.
     
     Pursuant  to Section 56(c) of the Code, one of the adjustment  items
used in computing AMTI and the Superfund Tax of a corporation (other than
an  S  Corporation, Regulated Investment Company, Real Estate  Investment
Trust  or  REMIC) for taxable years beginning after 1989,  is  an  amount
equal  to  75%  of  the  excess of such corporation's  "adjusted  current
earnings"  over an amount equal to its AMTI (before such adjustment  item
and the alternative tax net operating loss deduction).  "Adjusted current
earnings"  includes all tax-exempt interest, including  interest  on  all
Bonds in the Trust, and tax-exempt original issue discount.
     
     Effective  for  tax  returns  filed after  December  31,  1987,  all
taxpayers  are required to disclose to the Internal Revenue  Service  the
amount of tax-exempt interest earned during the year.
     
     Section  265  of the Code provides for a reduction in  each  taxable
year  of 100 percent of the otherwise deductible interest on indebtedness
incurred  or  continued  by  financial  institutions,  to  which   either
Section  585  or  Section 593 of the Code applies, to purchase  or  carry
obligations  acquired  after August 7, 1986, the  interest  on  which  is
exempt  from  Federal income taxes for such taxable  year.   Under  rules
prescribed by Section 265, the amount of interest otherwise deductible by
such  financial institutions in any taxable year which is  deemed  to  be
attributable  to  tax-exempt obligations acquired after August  7,  1986,
will  be  the amount that bears the same ratio to the interest  deduction
otherwise  allowable (determined without regard to Section  265)  to  the
taxpayer  for  the taxable year as the taxpayer's average adjusted  basis
(within  the meaning of Section 1016) of tax-exempt obligations  acquired
after August 7, 1986, bears to such average adjusted basis for all assets
of   the  taxpayer,  unless  such  financial  institution  can  otherwise
establish,  under regulations, to be prescribed by the Secretary  of  the
Treasury, the amount of interest on indebtedness incurred or continued to
purchase or carry such obligations.
     
     We  also call attention to the fact that, under Section 265  of  the
Code, interest on indebtedness incurred or continued to purchase or carry
Units  is  not deductible for Federal income tax purposes.   Under  rules
used  by the Internal Revenue Service for determining when borrowed funds
are  considered used for the purpose of purchasing or carrying particular
assets,  the purchase of Units may be considered to have been  made  with
borrowed  funds even though the borrowed funds are not directly traceable
to the purchase of Units.  However, these rules generally do not apply to
interest  paid  on indebtedness incurred for expenditures of  a  personal
nature  such  as  a mortgage incurred to purchase or improve  a  personal
residence.
     
     "The  Revenue  Reconciliation Act of 1993" (the "Tax Act")  subjects
tax-exempt  bonds to the market discount rules of the code effective  for
bonds purchased after April 30, 1993.  In general, market discount is the
amount  (if any) by which the stated redemption price at maturity exceeds
an  investor's purchase price (except to the extent that such difference,
if  any,  is  attributable to original issue discount not  yet  accrued).
Market  discount can arise based on the price a Trust pays for  Bonds  or
the  price  a Unitholder pays for his or her Units.  Under the  Tax  Act,
accretion  of market discount is taxable as ordinary income; under  prior
law,  the  accretion had been treated as capital gain.   Market  discount
that  accretes while a Trust holds a Bond would be recognized as ordinary
income  by  the Unitholders when principal payments are received  on  the
Bond,  upon sale or at redemption (including early redemption),  or  upon
the sale of redemption of his or her Units, unless a Unitholder elects to
include market discount in taxable income as it accrues.
     
     We  have  also examined the income tax law of the State of Colorado,
which  is  based upon the Federal Law, to determine its applicability  to
the Colorado IM-IT Trust (the "Colorado Trust") being created as part  of
the  Fund  and  to  the holders of Units in the Colorado  Trust  who  are
residents of the State of Colorado ("Colorado Unitholders").  Although we
express  no  opinion  with  respect to the  issuance  of  the  bonds,  in
rendering  our  opinion expressed herein, we have assumed that:  (i)  the
bonds were validly issued, (ii) interest thereon is excludable from gross
income  for federal income tax purposes, and (iii) interest on the bonds,
if received directly by a Unitholder, would be exempt from the income tax
imposed  by  the State that is applicable to individuals and corporations
(the "State Income Tax").  This opinion does not address the taxation  of
persons  other  than  full time residents of Colorado.   Based  upon  the
foregoing  it  is  our opinion that under Colorado  income  tax  law,  as
presently enacted and construed:
     
           a)    The  Colorado Trust is not an association taxable  as  a
     corporation for purposes of Colorado income taxation.
     
          (b)   Each Colorado Unitholder will be treated as owning a pro-
     rata  share of each asset of the Colorado Trust for Colorado  income
     tax  purposes  in the proportion that the number of  Units  of  such
     Trust held by him bears to the total number of outstanding Units  of
     the  Colorado  Trust,  and  the income of the  Colorado  Trust  will
     therefore be treated as the income of each Colorado Unitholder under
     Colorado  law in the proportion described and an item of  income  of
     the  Colorado Trust will have the same character in the hands  of  a
     Colorado Unitholder as it would have in the hands of the Trustee.
     
          (c)    Gain or loss will be recognized by a Colorado Unitholder
     upon redemption or sale of his Units.  Such gain or loss is measured
     by  comparing  the  proceeds of such redemption  or  sale  with  the
     adjusted basis of the Units represented by his Certificate.   Before
     adjustment,  such  basis  would normally be  cost  if  the  Colorado
     Unitholder  has  acquired his Units by purchase,  plus  his  aliquot
     share  of  advances  by  the Trustee to the Colorado  Trust  to  pay
     interest   on   bonds  delivered  after  the  Colorado  Unitholder's
     settlement  date  to the extent that such interest accrued  on  such
     bonds  during  the period from the Colorado Unitholder's  settlement
     date to the date such bonds are delivered to the Colorado Trust, but
     only  to  the  extent that such advances are to  be  repaid  to  the
     Trustee out of interest received by such Trust with respect to  such
     bonds.   In  addition, such basis will be increased by the  Colorado
     Unitholder's  aliquot share of the accrued original  issue  discount
     with  respect to each bond held by such Trust with respect to  which
     there  was  an  original issue discount at the time  such  bond  was
     issued  and  reduced by the annual amortization of bond premium,  if
     any, on the bonds held by the Colorado Trust.
     
          (d)    If  the  Trustee disposes of a bond  (whether  by  sale,
     payment  on  maturity,  redemption or otherwise)  gain  or  loss  is
     recognized  to  the  Colorado Unitholder and the amount  thereof  is
     measured by comparing the Colorado Unitholder's aliquot share of the
     total  proceeds  from  the  transaction  with  his  basis  for   his
     fractional  interest  in  the  bond  disposed  of.   Such  basis  is
     ascertained by apportioning the tax basis for his Units  among  each
     of  the  bonds  (as  of the date on which his units  were  acquired)
     ratably  according to their values as of the valuation date  nearest
     the  date on which he purchased such Units.  A Colorado Unitholder's
     basis in his Units and of his fractional interest in each bond  must
     be  reduced by the amount of his aliquot share of interest  received
     by the Colorado Trust, if any, in bonds delivered after the Colorado
     Unitholder's  settlement  date  to the  extent  that  such  interest
     accrued   on  such  bonds  during  the  period  from  the   Colorado
     Unitholder's settlement date to the date such bonds are delivered to
     the  Colorado  Trust, must be reduced by the annual amortization  of
     bond  premium,  if  any, on bonds held by such  Trust  and  must  be
     increased by the Colorado Unitholder's share of the accrued original
     issue  discount with respect to each bond which, at  the  time  such
     bond was issued, had original issue discount.
     
          (e)    If interest on indebtedness incurred or continued  by  a
     Colorado Unitholder to purchase Units in the Colorado Trust  is  not
     deductible  for  Federal  income  tax  purposes,  it  will  also  be
     nondeductible for Colorado income tax purposes.
     
         (f)   So long as the Colorado Trust holds obligations issued, on
     or  after  May  1, 1980, by the State of Colorado or  its  political
     subdivisions (the "Colorado Bonds"), then to the extent the interest
     on  the Colorado Bonds is excludable from Federal gross income of  a
     Colorado  Unitholder  pursuant to Section  103  of  the  Code,  such
     interest  will be excludable from Colorado adjusted gross income  of
     such Unitholder.
     
          (g)   Any amounts paid under an insurance policy issued to  the
     Colorado  Trust  which  represent  maturing  interest  on  defaulted
     obligations  held  by the Trustee will be excludable  from  Colorado
     adjusted  gross income if, and to the same extent as, such  interest
     is  been  so excludable for federal income tax purposes.   Paragraph
     (f)  of this opinion is accordingly applicable to insurance proceeds
     representing maturing interest.
     
          (h)    Certain  of  the bonds in the Colorado Trust  have  been
     insured by the issuers thereof against default in the prompt payment
     of   principal   and  interest.   Based  upon  the  exemptions   and
     assumptions  referred to above, it is our opinion that  any  amounts
     received  by  the Colorado Trust representing maturing  interest  on
     such  bonds  will be excludable from Colorado adjusted gross  income
     if,  and  to the same extent as, such interest is so excludable  for
     federal  income  tax  purposes.  Paragraph (f) of  this  opinion  is
     accordingly applicable to such payment.
     
     We  have  not examined any of the Bonds to be deposited and held  in
the  Colorado  Trust or the proceedings for the issuance thereof  or  the
opinions  of bond counsel with respect thereto, and therefore express  no
opinion  as to the exemption from State income taxes of interest  on  the
Bonds if received directly by a Unitholder.


                                    
                                    Very truly yours,
                                    
                                    
                                    
                                    Chapman and Cutler
MJK/cjw

                                                            Exhibit 3.3
                             Tanner Propp & Farber
                                99 Park Avenue
                              New York, NY  10016
     
     
                               October 16, 1995
                                       
                                       
                                       
Insured Municipals Income Trust
  186th Insured Multi-Series
The Bank of New York,
  As Trustee
101 Barclay Street, 17 West
New York, New York 10286

Dear Sirs:
     
     We have acted as special counsel for the Insured Municipals Income Trust,
186th  Insured  Multi-Series  (the  "Fund")  consisting  of  Colorado  Insured
Municipals  Income  Trust,  Series 77, New Jersey  Insured  Municipals  Income
Trust,  Series  106 and Pennsylvania Insured Municipals Income  Trust,  Series
208,  (individually  the "Trust" and in the aggregate the  "Trusts")  for  the
purposes of determining the applicability of certain New York taxes under  the
circumstances hereinafter described.
     
     The  Fund  is  created pursuant to a Trust Agreement  (the  "Indenture"),
dated  as  of today (the "Date of Deposit") among Van Kampen American  Capital
Distributors, Inc. (the "Depositor"), American Portfolio Evaluation  Services,
a  division  of  Van  Kampen American Capital Investment  Advisory  Corp.,  as
Evaluator, and The Bank of New York as Trustee (the "Trustee").  As  described
in the prospectus relating to the Fund dated today to be filed as an amendment
to  a registration statement previously filed with the Securities and Exchange
Commission (file number 33-63127) under the Securities Act of 1933, as amended
(the  "Prospectus"  and the "Registration Statement"), the objectives  of  the
Fund  are the generation of income exempt from Federal taxation and as regards
each of the "State" Trusts exempt from income tax and personal property tax of
the State denominated in the name of that "State" Trust, if any, to the extent
indicated  in the Prospectus.  No opinion is expressed herein with  regard  to
the  Federal  or State tax aspects of the bonds, the Fund, Trusts (other  than
New  York),  units  of the Trusts (the "Units") other than New  York,  or  any
interest, gains or losses in respect thereof.
     
     As  more  fully  set  forth in the Indenture and in the  Prospectus,  the
activities of the Trustee will include the following:
     
     On  the Date of Deposit, the Depositor will deposit with the Trustee with
respect  to each of the Trusts, the total principal amount of interest bearing
obligations  and/or  contracts  for  the purchase  thereof  together  with  an
irrevocable letter of credit in the amount required for the purchase price and
accrued  interest, if any, and an insurance policy purchased by the  Depositor
evidencing  the  insurance guaranteeing the timely payment  of  principal  and
interest of tile obligations comprising the corpus of such trusts oilier  than
those  obligations the timely payment of principal and interest of  which  are
guaranteed by an insurance policy purchased by the issuer thereof or  a  prior
owner, which may be the Depositor prior to the Date of Deposit, as more  fully
set forth in the Prospectus with respect to each Trust.
     
     We  understand with respect to the obligations described in the preceding
paragraph  that  all  insurance, whether purchased by the Depositor,  a  prior
owner  or the issuer, provides, or will provide, that the amount paid  by  the
insurer  in  respect of any bond may not exceed the amount  of  principal  and
interest due on the bond and such payment will in no event relieve the  issuer
from its continuing obligation to pay such defaulted principal and interest in
accordance with the terms of the obligation.
     
     The  Trustee will not participate in the selection of the obligations  to
be  deposited in the Fund, and, upon the receipt thereof, will deliver to  the
Depositor  a  registered certificate for the number of Units representing  the
entire capital of each of the Trusts as more fully set forth in the Prospectus
and  the  Registration  Statement.   The  Units,  which  are  represented   by
certificates ("Certificates"), will be offered to the public by the Prospectus
upon the effectiveness of the Registration Statement.
     
     The  duties of the Trustee, which are ministerial in nature, will consist
primarily of crediting the appropriate accounts with interest received by each
of  the Trusts and with the proceeds from the disposition of obligations  held
in  the Trusts and the distribution of such interest and proceeds to the  Unit
holders  of  that  Trust.   The  Trustee will also  maintain  records  of  the
registered holders of Certificates representing an interest in each Trust  and
administer the redemption of Units by such Certificate holders and may perform
certain  administrative  functions with respect  to  an  automatic  investment
option.
     
     Generally, obligations held in the Fund may be removed therefrom  by  the
Trustee  only upon redemption prior to their stated maturity, at the direction
of  the  Depositor in the event of an advance refunding or upon the occurrence
of  certain other specified events which adversely affect the sound investment
character of the Fund, such as default by the issuer in payment of interest or
principal  on  the  obligation and no provision for payment is  made  therefor
either  pursuant to insurance or otherwise and the Depositor fails to instruct
the  Trustee,  within  thirty  (30)  days after  notification,  to  hold  such
obligation.
     
     Prior  to the termination of the Fund, the Trustee is empowered  to  sell
Bonds,  from  a  list  furnished by the Evaluator, only  for  the  purpose  of
redeeming Units tendered to it and of paying expenses for which funds are  not
available.  The Trustee does not have the power to vary the investment of  any
Unit  holder in the Fund, and under no circumstances may the proceeds of  sale
of  any obligations held by the Fund be used to purchase new obligations to be
held therein.
     
     Article  9-A of the New York Tax Law imposes a franchise tax on  business
corporations,  and, for purposes of that Article, Section 208(l)  defines  the
term "corporation" to include, among other things, "any business conducted  by
a   trustee  or  trustees  wherein  interest  or  ownership  is  evidenced  by
certificate or other written instrument."
     
     The Regulations promulgated under Section 208 provide as follows:
          
          A  business  conducted by a trustee or trustees  in  which
          interest or ownership is evidenced by certificate or other
          written  instrument includes, but is not  limited  to,  an
          association commonly referred to as a "business trust"  or
          "Massachusetts trust".  In determining whether  a  trustee
          or  trustees  are conducting a business, the form  of  the
          agreement is of significance but is not controlling.   The
          actual  activities of the trustee or trustees,  not  their
          purposes and powers, will be regarded as decisive  factors
          in  determining whether a trust is subject  to  tax  under
          Article  9-A.   The  mere  investment  of  funds  and  the
          collection    of   income   therefrom,   with   incidental
          replacement of securities and reinvestment of funds,  does
          not constitute the conduct of a business in the case of  a
          business  conducted by a trustee or trustees. 20 NYCRR  1-
          2.3(b)(2) (July 11, 1990).
     
     New  York  cases  dealing with the question of whether a  trust  will  be
subject to the franchise tax have also delineated the general rule that  where
a  trustee  merely  invests  funds and collects  and  distributes  the  income
therefrom,  the  trust is not engaged in business and is not  subject  to  the
franchise  tax.   Burrell v. Lynch, 274 A.D. 347, 84 N.Y.S.2d 171  (3rd  Dept.
1948), order resettled, 274 A.D. 1083, 85 N.Y.S.2d 705 (3rd Dept. 1949).
     
     In  an opinion of the Attorney General of the State of New York, 47  N.Y.
Atty. Gen. Rep. 213 (Nov. 24, 1942), it was held that where the trustee of  an
unincorporated  investment  trust was without authority  to  reinvest  amounts
received  upon the sales of securities and could dispose of securities  making
up  the  trust  only  upon the happening of certain specified  events  or  the
existence  of certain specified conditions, the trust was not subject  to  the
franchise tax.
     
     In   the  instant  situation,  the  Trustee  is  not  empowered  to  sell
obligations  contained  in the corpus of the Fund and  reinvest  the  proceeds
therefrom.   Further,  the  power  to sell  such  obligations  is  limited  to
circumstances in which the creditworthiness or soundness of the obligation  is
in question or in which cash is needed to pay redeeming Unit holders or to pay
expenses, or where the Fund is liquidated pursuant to the termination  of  the
Indenture.   Only  in  circumstances in which  the  issuer  of  an  obligation
attempts  to  refinance it can the Trustee exchange an obligation  for  a  new
security.  In substance, the Trustee will merely collect and distribute income
and will not reinvest any income or proceeds, and the Trustee has no power  to
vary the investment of any Unit holder in the Fund.
     
     Under  Subpart  E  of Part 1, Subchapter J of Chapter I of  the  Internal
Revenue Code of 1986, as amended (the "Code"), the grantor of a trust will  be
deemed  to be the owner of the trust under certain circumstances and therefore
taxable  on  his  proportionate interest in the income  thereof.   Where  this
Federal  tax rule applies, the income attributed to the grantor will  also  be
income  to him for New York income tax purposes.  See TSB-M78(9)(c), New  York
Department of Taxation and Finance, June 23, 1978.
     
     Article 22 (Personal Income Tax) of the New York Tax Law imposes a tax on
a  New  York  State resident individual's State adjusted gross  income.   Such
amount is defined by Section 612 as his Federal adjusted gross income, with an
addition  for  interest  income on the obligations of  a  State  or  political
subdivision  of  a  state other than New York, if excluded  from  his  federal
adjusted  gross  income.   Such amount is defined by  Section  T46112  of  the
Administrative  Code  of  the City of New York as Ins Federal  adjusted  gross
income, with an addition for interest income on the obligations of a state  or
political  subdivision of a state other than New York, if  excluded  from  his
federal  adjusted gross income. 48 U.S.C.  Section 745 exempts interest  on  a
bond  issued  by  the  Government of Puerto Rico or  a  political  subdivision
thereof  from  tax  of the United States, of any State,  and  of  any  state's
county,  municipality,  or municipal subdivision thereof.  48  U.S.C.  Section
1423a  exempts interest on a bond issued by the Government of Guam or  by  its
authority  from  taxation  by  the  United  States,  any  state  or  political
subdivision.   The New York Trust holds only obligations issued  by  New  York
State  or a political subdivision thereof or by the Government of Puerto  Rico
or  a  political subdivision thereof, or by the Government of Guam or  by  its
authority.
     
     By  letter,  dated  today, Messrs. Chapman and Cutler,  counsel  for  the
Depositor,  rendered their opinion that each Unit holder of a  Trust  will  be
considered  as  owning a share of each asset of that Trust in  the  proportion
that  the  number  of Units held by such holder bears to the total  number  of
Units  outstanding and the income of a Trust will be treated as the income  of
each  Unit  holder of that Trust in said proportion pursuant to Subpart  E  of
Part 1, Subchapter J of Chapter I of the Code.
     
     Based  on the foregoing and of the opinion of Messrs. Chapman and Cutler,
co-counsel for the Depositor, dated today, upon which we specifically rely, we
are  of  the  opinion that under existing laws, rulings, and  court  decisions
interpreting the laws of the State and City of New York:

      1.   Each of the Trusts will not constitute an association taxable as  a
corporation under New York law, and, accordingly, will not be subject  to  tax
on  its  income  under the New York State franchise tax or the New  York  City
general corporation tax.

      2.    The income of each of the Trusts will be treated as the income  of
the Unit holders under the income tax laws of the State and City of New York.

      3.   Resident individuals of New York State and City will not be subject
to  the  State  or  City  personal income taxes on interest  income  on  their
proportionate shares of interest income earned by a Trust on any obligation of
New  York  State  or a political subdivision thereof or of the  Government  of
Puerto Rico or a political subdivision thereof or of the Government of Guam or
by  its authority, to the extent such income is excludable from Federal  gross
income under Code Section 103.

      4.    Any  amounts  paid under the insurance policies purchased  by  the
Depositor  and  deposited  with the Trustee, as more  fully  described  above,
representing  maturing interest on defaulted obligations held by  the  Trustee
will not be subject to New York State or City income taxes if, and to the same
extent as, such amounts would have been excludable from New York State or City
income  taxes  if  paid  by  the  issuer.  Paragraph  3  of  this  opinion  is
accordingly applicable to such policy proceeds representing maturing interest.

      5.    Any amounts paid under an insurance policy purchased by the issuer
of an obligation or a prior owner, as more fully described above, representing
maturing  interest on such defaulting obligation held by the Trustee will  not
be  subject to New York State or City income taxes if, and to the same  extent
as, such amounts would have been excludable from New York State or City income
taxes  if  paid  by  the issuer.  Paragraph 3 of this opinion  is  accordingly
applicable to such policy proceeds representing maturing interest.

      6.   Resident individuals of New York State and City who hold Units will
recognize  gain or loss, if any, under the State or City personal  income  tax
law  if the Trustee disposes of a Fund asset.  The amount of such gain or loss
is measured by comparing the Unit holder's aliquot share of the total proceeds
from  the transaction with his basis for his fractional interest in the  asset
disposed of.  Such basis is ascertained by apportioning the tax basis for  his
Units among each of the Trust's assets (as of the date on which is Units  were
acquired)  ratably according to their values as of the valuation date  nearest
the date on which he purchased such Units.  A Unit holder's basis in his Units
and  of  his fractional interest in the Trust's assets must be reduced by  the
amount  of  his aliquot share of interest received by the Trust,  if  any,  on
bonds  delivered  after the settlement date to the extent that  such  interest
accrued on the Bonds during the period from the Unit holder's settlement  date
to  the  date such Bonds are delivered to that Trust and must be adjusted  for
amortization of bond premium or accretion of original issue discount, if  any,
on tax-exempt obligations held by the Trust.

      7.   Resident individuals of New York State and City who hold Units will
recognize  gain or loss, if any, under the State or City personal  income  tax
law  if  the  Unit holder sells or redeems any Units.  Such gain  or  loss  is
increased  by  comparing  the proceeds of such redemption  or  sale  with  the
adjusted  basis of the Units redeemed or sold.  Before adjustment, such  basis
would  normally be cost if the Unit holder had acquired his Units by purchase,
plus  his aliquot share of advances by the Trustee to the Fund to pay interest
on  Bonds delivered after the Unit holder's settlement date to the extent that
such  interest accrued on the Bonds during the period from the settlement date
to  the date such Bonds are delivered to the Fund, but only to the extent that
such advances are to be repaid to the Trustee out of interest received by  the
Fund with respect to such Bonds.

     8.   Unit holders who are not residents of New York State are not subject
to  the  personal income tax law thereof with respect to any interest or  gain
derived  from  a Trust or any gain from the sale or other disposition  of  the
Units,  except  to  the  extent that such interest or gain  is  from  property
employed in a business, trade, profession or occupation carried on in New York
state.
     
     In  addition, we are of the opinion that no New York State stock transfer
tax  will be payable in respect of any transfer of the Certificates by  reason
of the exemption contained in paragraph (a) of Subdivision 8 of Section 270 of
the New York Tax Law.
     
     We  hereby  consent to the filing of this opinion as an  exhibit  to  the
Registration  Statement relating to the Units and to the use of our  name  and
the reference to our firm in the Registration Statement and in the Prospectus.
                                    
                                    Very truly yours,
                                    
                                    
                                    Tanner Propp & Farber


MNS:ac


                                                              Exhibit 3.4
                                  
                      Pitney, Hardin, Kipp & Szuch
                              P.O. Box 1945
                    Morristown, New Jersey 07962-1945
                                    
                                    
                            October 16, 1995
                                    
                                    
                                    

Van Kampen American Capital Distributors, Inc.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
     
     
     Re:Insured Municipals Income Trust, 186th Insured Multi-Series
        (NewJersey Insured Municipals Income Trust, Series 106)

Gentlemen:
     
     We  have acted as special counsel, with respect to New Jersey  state
tax  matters,  to Insured Municipals Income Trust, 186th  Insured  Multi-
Series (the "Fund") concerning a Registration Statement (No. 33-63127  on
Form  S-6  under  the  Securities Act of 1933, as amended,  covering  the
issuance  by  the  Fund  of units of fractional undivided  interest  (the
"Units")  in several state trusts (the "State Trusts"), one of  which  is
New Jersey Insured Municipals Income Trust, Series 106 included as a part
of  the  Fund (the "New Jersey Trust").  Such Units will be purchased  by
various investors ("Certificateholders").
     
     The  Fund  is  organized under a Trust Indenture and Agreement  (the
"Indenture")  of even date herewith (the "Date of Deposit")  between  Van
Kampen American Capital Distributors, Inc. (the "Depositor") and The Bank
of New York through its Wall Street Trust division (the "Trustee").  Each
Unit  of  the New Jersey Trust represents a fractional undivided interest
in  the principal and net income of the New Jersey Trust.  The New Jersey
Trust  will be comprised of that number of units which will establish  as
close  as possible as of the Date of Deposit a Public Offering Price  (as
defined in the Prospectus) per Unit of $1,000.  The New Jersey Trust will
be   administered  as  a  distinct  entity  with  separate  certificates,
investments, expenses, books and records.
     
     In  acting  as special counsel, we have examined such documents  and
records with respect to a prior series, Insured Municipals Income  Trust,
182nd  Insured  Multi-Series, as we deem necessary,  including,  but  not
limited to, the Trust Indenture and Agreement (the "182nd Insured  Multi-
Series  Indenture")  and  the Prospectus.   You  have  advised  that  the
Indenture  is  identical in all material respects to  the  182nd  Insured
Multi-Series  Indenture.   You  have also advised  that  the  opinion  of
Messrs. Chapman and Cutler with respect to the Federal income tax  status
of  the Fund, its constituent State Trusts and its Certificateholders, is
in  all  material  respects identical to the opinion  issued  by  Messrs.
Chapman and Cutler for the Insured Municipals Income Trust, 182nd Insured
Multi-Series.
     
     We  note  that  the assets of the New Jersey Trust will  consist  of
interest-bearing obligations issued by or on behalf of the State  of  New
Jersey,  and  counties, municipalities, authorities and  other  political
subdivisions thereof, and certain territories of the United  States  (the
"Bonds"). Distributions of the interest received by the New Jersey  Trust
will   be  made  to  each  Certificateholder  semi-annually  unless   the
Certificateholder  elects  to receive such  distributions  on  a  monthly
basis.   In  the opinion of bond counsel to each issuer, the interest  on
all Bonds in the New Jersey Trust is exempt from Federal income tax under
existing law.
     
     We  understand  that  on  the  Date of  Deposit  the  Depositor  has
deposited with the Trustee the total principal amount of interest-bearing
obligations  and/or contracts for the purchase thereof together  with  an
irrevocable  letter  of credit in the amount required  for  the  purchase
price and accrued interest, if any, and an insurance policy purchased  by
the Depositor evidencing the insurance guaranteeing the timely payment of
principal  and interest of some of the obligations comprising the  corpus
of  the Fund, as more fully set forth in the Preliminary Prospectus.  All
other obligations included in the deposit described above will be covered
by  insurance  obtained  by  the issuer of such obligations  guaranteeing
timely  payment of principal and interest.   Such insurance will  provide
that the amount paid by the insurer in respect of any Bond may not exceed
the  amount  of principal and interest due on the Bond and  such  payment
will in no event relieve the issuer from its continuing obligation to pay
such defaulted principal and interest in accordance with the terms of the
obligation.
     
     Section  2.04 of the Indenture provides that each State Trust  is  a
separate  and  distinct trust for all purposes, the assets of  one  State
Trust may not be commingled with the assets of any other State Trust, and
the  expenses of one State Trust shall not be charged against  any  other
State  Trust.   Section  2.04  further  provides  that  the  certificates
representing  the ownership of an undivided fractional  interest  in  one
State  Trust shall not be exchangeable for certificates representing  the
ownership of an undivided fractional interest in any other State Trust.
     
     The Indenture provides further, among other things, that the Trustee
shall:
     
          (a)   collect all interest and monies payable to the New Jersey
     Trust,  and  hold  the funds collected in trust  on  behalf  of  the
     Certificateholders of the New Jersey Trust;
     
          (b)    set aside from such funds any amounts necessary for  the
     reimbursement of advances and for the payment of expenses, taxes and
     governmental charges in respect of the New Jersey Trust;
     
         (c)   distribute all remaining amounts semi-annually, or monthly
     if  so elected by a Certificateholder, to the Certificateholders  in
     proportion to their interest in the New Jersey Trust;
     
          (d)    redeem  any  certificates tendered for redemption  by  a
     Certificateholder  provided  that  the  Trustee  has  notified   the
     Depositor  of  the tender and the Depositor has failed  to  indicate
     within  a time specified in the Indenture that it will purchase  the
     tendered certificates from the tendering Certificateholder;
     
          (e)    sell or liquidate any or all Bonds at the sole direction
     of  the  Depositor and at such price and time and in such manner  as
     shall  be  determined by the Depositor, provided that the  Depositor
     has  determined that any one or more of certain conditions specified
     in the Indenture exists;
     
          (f)   in connection with an offer made by an obligor of any  of
     the Bonds to issue new obligations, in exchange and substitution for
     any  issue  of  Bonds  pursuant  to a  plan  for  the  refunding  or
     refinancing of such Bonds, pursuant to the sole instruction  of  the
     Depositor in writing, reject such offer and either hold or sell such
     Bonds,  or  accept or reject such offer or to take any other  action
     with respect thereto as the Depositor may deem proper; and
     
          (g)    at  the  direction of the Depositor, acquire Replacement
     Bonds,  as defined in the Prospectus, to make up the original corpus
     of  the  New  Jersey Trust in the event of a failure to deliver  any
     Bond  that  has  been  purchased for the New Jersey  Trust  under  a
     contract,  including those Bonds purchased on a  "when,  as  and  if
     issued" basis.
     
     The  Trustee  has  no  power of sale except  (a)  on  order  of  the
Depositor   as  stated  herein,  (b)  to  provide  funds,  not  otherwise
available, to pay taxes, charges, expenses, fees or indemnities,  (c)  in
case  of default on any of the Bonds, but only after notification of  the
Depositor,  and provided that the Depositor has not, within  30  days  of
such notification, given any instructions to sell or to hold, or has  not
taken  any  other action in connection with, such Bonds, or (d)  for  the
purpose of redeeming certificates tendered by any Certificateholder.  The
Trustee has no power to reinvest, except as stated in Section 3.08 of the
Indenture.  Such limited power of reinvestment is in furtherance  of  the
Trustee's obligation to protect the trust assets, and does not constitute
power to vary investments.
     
     The  Indenture  provides  further,  among  other  things,  that  the
Certificateholders:
     
          (a)    may  tender  their certificate or  certificates  to  the
     Trustee for redemption except in limited circumstances;
     
         (b)   will not have any right to vote or in any manner otherwise
     control  the  operation and management of the Fund, the  New  Jersey
     Trust, or the obligations of the Depositor or Trustee;
     
          (c)    may  elect to receive distributions from the New  Jersey
     Trust on a monthly basis;
     
          (d)   may terminate the New Jersey Trust at any time by written
     consent   of  Certificateholders  representing  51%  of   the   then
     outstanding Units of the New Jersey Trust; and
     
         (e)   shall be under no liability to any third persons by reason
     of  any  action  taken  by the Depositor or  Trustee  or  any  other
     Certificateholder, or any other cause whatsoever.
     
     You have advised that, in the opinion of Messrs. Chapman and Cutler,
for Federal income tax purposes the Fund and New Jersey Trust will not be
taxable  as  a  corporation or association but will be  governed  by  the
provisions  of  Subchapter J (relating to trusts) of  Chapter  1  of  the
Internal  Revenue Code of 1986, as amended.  Each Certificateholder  will
be considered the owner of a pro rata portion of the New Jersey Trust and
will  be  subject to tax on the income therefrom under the provisions  of
Subpart  E of Subchapter J of Chapter 1 of the Internal Revenue  Code  of
1986,  as  amended.  The New Jersey Trust itself will not be  subject  to
Federal  income  taxes.  For Federal income tax purposes,  each  item  of
trust  income  will  have  the  same  character  in  the  hands  of   the
Certificateholder  as  it  would  have  in  the  hands  of  the  Trustee.
Accordingly,  to  the  extent that the income of  the  New  Jersey  Trust
consists  of interest excludable from gross income under Section  103  of
the  Internal  Revenue  Code of 1986, as amended,  such  income  will  be
excludable   from   Federal  gross  income  of   the   Certificateholder.
Furthermore, any proceeds paid under the insurance policy issued  to  the
Trustee  of  the  Fund  which represent maturing  interest  on  defaulted
obligations  held  by the Trustee will be excludable from  Federal  gross
income  if, and to the same extent as, such interest would have  been  so
excludable  if  paid by the issuer of the defaulted obligations  and  the
excludability from Federal gross income of interest on Bonds which may be
insured  by policies issued directly to the respective Bond issuers  will
not  be  affected if the source of any interest payment  is  from  policy
proceeds.
     
     Based   on   our  examination  of  the  182nd  Insured  Multi-Series
Indenture,  your advice that the Indenture is identical in  all  material
respects  to  the 182nd Insured Multi-Series Indenture, your advice  that
the  opinion  of Messrs.  Chapman and Cutler with respect to the  Federal
income  tax  status  of the Fund, its constituent State  Trusts  and  its
Certificateholders  dated  as of the date  hereof  is  identical  in  all
material  respects  to  its counterpart in the  prior  issue  of  Insured
Municipals Income Trust, 182nd Insured Multi-Series, and, with respect to
Federal  income tax matters, with your approval, relying solely upon  the
opinion of Messrs. Chapman and Cutler, and our examination of such  other
documents, records and matters of law as we deem necessary, we are of the
opinion that for New Jersey state and local tax purposes:
     
          1.   The New Jersey Trust will be recognized as a trust and not
     an  association taxable as a corporation.  The New Jersey Trust will
     not be subject to the New Jersey Corporation Business Tax or the New
     Jersey Corporation Income Tax.
     
           2.    With respect to the non-corporate Certificateholders who
     are  residents  of  New Jersey, the income of the New  Jersey  Trust
     which is allocable to each such Certificateholder will be treated as
     the  income  of  such Certificateholder under the New  Jersey  Gross
     Income  Tax.  Interest on the underlying Bonds which would be exempt
     from  New  Jersey  Gross  Income Tax if directly  received  by  such
     Certificateholder will retain its status as tax-exempt interest when
     received   by  the  New  Jersey  Trust  and  distributed   to   such
     Certificateholder.   Any proceeds paid under  the  insurance  policy
     issued to the Trustee of the Fund with respect to the Bonds or under
     individual  policies  obtained by issuers of Bonds  which  represent
     maturing interest on defaulted obligations held by the Trustee  will
     be  exempt  from  New Jersey Gross Income Tax if, and  to  the  same
     extent  as, such interest would have been so exempt if paid  by  the
     issuer of the defaulted obligations.
     
           3.   A non-corporate Certificateholder will not be subject  to
     the New Jersey Gross Income Tax on any gain realized either when the
     New  Jersey  Trust  disposes of a Bond (whether by  sale,  exchange,
     redemption,  or  payment at maturity) or when the  Certificateholder
     redeems  or  sells his Units, or upon payment of any proceeds  under
     the  insurance policy issued to the Trustee of the Fund with respect
     to  the  Bonds or under individual policies obtained by  issuers  of
     Bonds  which  represent maturing principal on defaulted  obligations
     held by the Trustee.  Any loss realized on such disposition may  not
     be  utilized  to offset gains realized by such Certificateholder  on
     the  disposition of assets the gain on which is subject to  the  New
     Jersey Gross Income Tax.
     
           4.   Units of the New Jersey Trust may be taxable on the death
     of a Certificateholder under the New Jersey Transfer Inheritance Tax
     law or the New Jersey Estate Tax Law.
     
          5.   If a Certificateholder is a corporation subject to the New
     Jersey  Corporation  Business Tax or New Jersey  Corporation  Income
     Tax,  interest  from  the Bonds in the New  Jersey  Trust  which  is
     allocable  to such corporation will be includable in its entire  net
     income  for purposes of the New Jersey Corporation Business  Tax  or
     New  Jersey  Corporation  Income  Tax,  less  any  interest  expense
     incurred  to  carry  such  investment to the  extent  such  interest
     expense  has not been deducted in computing Federal taxable  income.
     Net  gains  derived  by such corporation on the disposition  of  the
     Bonds  by  the New Jersey Trust or on the disposition of  its  Units
     will  be  included in its entire net income for purposes of the  New
     Jersey  Corporation  Business Tax or New Jersey  Corporation  Income
     Tax.   Any  proceeds paid under the insurance policy issued  to  the
     Trustee  of  the Fund with respect to the Bonds or under  individual
     policies  obtained  by  issuers of Bonds  which  represent  maturing
     interest or maturing principal on defaulted obligations held by  the
     Trustee  will be included in its entire net income for  purposes  of
     the  New  Jersey Corporation Business Tax or New Jersey  Corporation
     Income  Tax if, and to the same extent as, such interest or proceeds
     would  have been so included if paid by the issuer of the  defaulted
     obligations.
     
     We  have not examined any of the obligations to be deposited in  the
Fund,  and  express  no opinion as to whether the interest  on  any  such
obligations  would  in  fact  be tax-exempt if  directly  received  by  a
Certificateholder;  nor  have  we made  any  review  of  the  proceedings
relating to the issuance of Bonds or the basis for bond counsel opinions.
     
     We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement and to the reference to our firm and a summary  of
this  opinion  included in such Registration Statement  and  the  related
Prospectus.  In giving such consent we do not thereby admit that  we  are
in  the category of persons whose consent is required by Section 7 of the
Securities  Act  of  1933,  as amended, and  the  rules  and  regulations
thereunder.
     
     Except  as  indicated in the immediately preceding paragraph  hereof
and except with our prior written consent, this opinion may not be quoted
in  whole  or  in  part  or otherwise referred  to  in  any  document  or
instrument or be furnished to or relied upon by any person other than the
addressee  and  The  Bank  of  New York through  its  Wall  Street  Trust
division, as Trustee (including any successor trustee).
                                    Very truly yours,
                                    
                                    Pitney, Hardin, Kipp & Szuch


                                                               Exhibit 3.5
                        Saul, Ewing, Remick & Saul
                         3800 Centre Square West
                         Philadelphia, PA  19102
                                    
                                    
                            October 16, 1995
                                    
                                    
                                    
Insured Municipals Income Trust
186th Insured Multi-Series
Pennsylvania Insured Municipals
  Income Trust, Series 208
c/o Chapman & Cutler
111 W. Monroe Street
Chicago, Illinois  60603

Attention:   Mark J. Kneedy, Esquire
     
     
     Re:Insured Municipals Income Trust, 186th Insured Multi-Series
        Pennsylvania Insured Municipals Income Trust, Series 208
     
     
     
Gentlemen:
     
     We  are  acting as special counsel with respect to Pennsylvania  tax
matters  for  the Insured Municipals Income Trust, 186th  Insured  Multi-
Series,  Pennsylvania Insured Municipals Income Trust,  Series  208  (the
"Fund")  in connection with the issuance of Units of fractional undivided
interests  in  the  Fund,  under a Trust Indenture  and  Agreement  dated
October  16, 1995 between Van Kampen American Capital Distributors,  Inc.
("Van  Kampen") as Depositor, American Portfolio Advisory Service,  Inc.,
as  Evaluator,  and  The Bank of New York through its Wall  Street  Trust
division, as Trustee.  It is our understanding that the Fund consists  of
a  portfolio  composed  of  interest-bearing obligations  issued  by  the
Commonwealth  of Pennsylvania or by municipalities and other governmental
authorities within the Commonwealth of Pennsylvania (the "Bonds").
     
     We have not examined any preliminary or final official statements of
issuers  of  the  Bonds,  nor have we examined  any  legal  opinions,  or
summaries of such opinions, relating to the validity of the Bonds in  the
Fund,  the  exemption of interest thereon from federal  income  tax,  the
exemption  of the Bonds from personal property taxes in Pennsylvania,  or
the  exemption of the interest on and any gain from the sale of the Bonds
from  the Pennsylvania personal income tax, given or to be given by  bond
counsel  to  the issuer at the time such Bonds are issued.   Further,  we
have  made no review of the proceedings relating to the issuance  of  the
Bonds or of the basis for such opinions.  Our opinion expressed below  is
based  in  part  on  the  assurance of Van Kampen that  the  Bonds  being
deposited  in  the  Fund  have been issued only by  the  Commonwealth  of
Pennsylvania  or by or on behalf of municipalities or other  governmental
agencies within the Commonwealth of Pennsylvania.
     
     We have examined certified copies, or copies otherwise identified to
our satisfaction, of such other documents as we have deemed necessary  or
appropriate  for  the purpose of rendering this opinion, including  those
related  to  previous transactions in which Van Kampen was the  Depositor
which  we have been assured by Van Kampen are substantially the  same  as
those relating to the Fund.
     
     Based upon the foregoing, we are of the opinion that:
     
          (1)    Units evidencing fractional undivided interests  in  the
     Fund,  to  the  extent  represented by  obligations  issued  by  the
     Commonwealth  of  Pennsylvania,  any public  authority,  commission,
     board  or  other agency created by the Commonwealth of Pennsylvania,
     any political subdivision of the Commonwealth of Pennsylvania or any
     public authority created by any such political subdivision, are  not
     taxable under any of the personal property taxes presently in effect
     in Pennsylvania;
     
         (2)   Distributions of interest income to Unitholders that would
     not  be taxable if received directly by a Pennsylvania resident  are
     not subject to personal income tax under the Pennsylvania Tax Reform
     Code  of  1971; nor will such interest be taxable under Philadelphia
     School  District  Investment  Income  Tax  imposed  on  Philadelphia
     resident individuals;
     
           (3)    A  Unitholder  may  have  a  taxable  event  under  the
     Pennsylvania state and local income tax referred to in the preceding
     paragraph upon the redemption or sale of his Units but not upon  the
     disposition  of any of the Bonds in the Fund to which  the  holder's
     Units relate;
     
          (4)    Units are subject to Pennsylvania inheritance and estate
     taxes;
     
          (5)    A  Unitholder which is a corporation may have a  taxable
     event  under  the  Pennsylvania Corporate Net Income  Tax  upon  the
     redemption  or  sale of its Units.  Interest income  distributed  to
     Unitholders  which are corporations is not subject  to  Pennsylvania
     Corporate  Net  Income  Tax  or  Mutual  Thrift  Institutions   Tax.
     However, banks, title insurance companies and trust companies may be
     required to take the value of Units into account in determining  the
     taxable value of their shares subject to Shares Tax;
     
         (6)   Under Act No. 68 of December 3, 1993, gains derived by the
     Fund  from the sale, exchange or other disposition of bonds  may  be
     subject  to Pennsylvania personal or corporate income taxes.   Those
     gains  which are distributed by the Fund to the Unitholders who  are
     individuals may be subject to Pennsylvania Personal Income Tax.  For
     Unitholders  which are corporations, the distributed  gains  may  be
     subject  to  Corporate Net Income Tax or Mutual Thrift  Institutions
     Tax.   Gains  which are not distributed by the Fund may nevertheless
     be  taxable  to  Unitholders if derived by the Fund from  the  sale,
     exchange  or other disposition of Bonds issued on or after  February
     1,  1994.   Gains which are not distributed by the Fund will  remain
     nontaxable  to  Unitholders if derived by the Fund  from  the  sale,
     exchange  or other disposition of Bonds issued prior to February  1,
     1994;
     
          (7)   Any proceeds paid under insurance policies issued to  the
     Trustee or obtained by issuers or the underwriters of the bonds, the
     Sponsor  or others which represent interest on defaulted obligations
     held  by  the  Trustee  will be excludable from  Pennsylvania  gross
     income if, and to the same extent as, such interest would have  been
     so  excludable  if paid in the normal course by the  issuer  of  the
     defaulted obligations; and
     
           (8)     The  Fund  is  not  taxable  as  a  corporation  under
     Pennsylvania tax laws applicable to corporations.
     
     On  December 3, 1993, changes to Pennsylvania law affecting taxation
of  income  and  gains from the sale of Commonwealth of Pennsylvania  and
local  obligations were enacted.  Among these changes was the  repeal  of
the  exemption  from  tax  of  gains realized  upon  the  sale  or  other
disposition of such obligations.  The Pennsylvania Department of  Revenue
has  issued proposed regulations concerning these changes.  The  opinions
expressed  above  are  based on our analysis  of  the  law  and  proposed
regulations  but  are  subject  to  modification  upon  review  of  final
regulations  or  other guidance that may be issued by the  Department  of
Revenue or future court decisions.
     
     We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement (SEC No. 33-63127) relating to the Units  referred
to  above and to the use of our name and to the reference to our firm  in
the said Registration Statement and in the related Prospectus.
                                 
                                    Very truly yours,
                                    
                                    Saul, Ewing, Remick & Saul
                                    
SERS:RTF/jsr


                                                             Exhibit 4.1

Interactive Data
14 West Street
New York, NY  10005


October 13, 1995


Van Kampen American Capital Distributors, Inc.
One Parkview Plaza
Oakbrook Terrace, IL 60181
     
     
     Re: Insured Municipals Income Trust, 186th Insured Multi-Series
     (A Unit Investment Trust) Registered Under the Securities Act of
     1933
                                            File No. 33-63127
     

Gentlemen:
     
     We  have  examined the Registration Statement for the above  captioned
Fund, copy of which is attached hereto.
     
     We  hereby consent to the reference in the Prospectus and Registration
Statement for the above captioned Fund to Interactive Data Services,  Inc.,
as  the  Evaluator, and to the use of the Obligations prepared by us  which
are referred to in such Prospectus and Statement.
     
     You  are  authorized to file copies of this letter with the Securities
and Exchange Commission.

Very truly yours,

James Perry
Vice President

                                                             Exhibit 4.2

October 16, 1995

Standard & Poor's Ratings Services,
A division of The McGraw-Hill Companies, Inc.
25 Broadway
New York, New York  10004-1064


Van Kampen American Capital
One Parkview Plaza
Oakbrook Terrace, Illinois  60181

Re:  Insured Municipals Income Trust, 186th Insured Multi-Series - consisting
of:
     Colorado Insured Municipals Income Trust, Series 77, New Jersey Insured
     Municipals Income Trust, Series 106 and Pennsylvania Insured Municipals
     Income Trust, Series 208
     
     Pursuant  to your request for a Standard & Poor's rating on the units  of
the  above-captioned  trust, SEC #33-63127, we have reviewed  the  information
presented to us and have assigned a 'AAA' rating to the units of the trust and
a  'AAA'  rating to the securities contained in the trust for as long as  they
remain in the trust.  The ratings are direct reflections, of the portfolio  of
the  trust,  which  will  be  composed solely of securities  covered  by  bond
insurance policies that insure against default in the payment of principal and
interest  on the securities so long as they remain in the trust.   Since  such
policies  have been issued by one or more insurance companies which have  been
assigned a 'AAA' claims paying ability rating by S&P, S&P has assigned a 'AAA'
rating to the units of the trust and to the securities contained in the  trust
for as long as they remain in the trust.
     
     You  have permission to use the name of Standard & Poor's Corporation and
the   above-assigned  ratings  in  connection  with  your   dissemination   of
information relating to these units, provided that it is understood  that  the
ratings are not "market" ratings nor recommendations to buy, hold, or sell the
units  of  the  trust or the securities contained in the trust.   Further,  it
should  be  understood the rating on the units does not take into account  the
extent  to  which  fund expenses or portfolio asset sales for  less  than  the
fund's  purchase price will reduce payment to the unit holders of the interest
and  principal required to be paid on the portfolio assets.  S&P reserves  the
right  to  advise its own clients, subscribers, and the public of the ratings.
S&P  relies on the sponsor and its counsel, accountants, and other experts for
the  accuracy and completeness of the information submitted in connection with
the  ratings.  S&P does not independently verify the truth or accuracy of  any
such information.
     
     This  letter evidences our consent to the use of the name of  Standard  &
Poor's Corporation in connection with the rating assigned to the units in  the
registration  statement  or prospectus relating to the  units  or  the  trust.
However,  this letter should not be construed as a consent by us,  within  the
meaning of Section 7 of the Securities Act of 1933, to the use of the name  of
Standard & Poor's Corporation in connection with the ratings assigned  to  the
securities contained in the trust.  You are hereby authorized to file  a  copy
of this letter with the Securities and Exchange Commission.
     
     Please  be  certain to send us three copies of your final  prospectus  as
soon  as it becomes available.  Should we not receive them within a reasonable
time  after the closing or should they not conform to the representations made
to us, we reserve the right to withdraw the rating.
     
     We  are pleased to have had the opportunity to be of service to you.   If
we can be of further help, please do not hesitate to call upon us.

                                    Sincerely,
                                    
                                    Sanford B. Bragg
                                    Managing Director



                                    
                                                          Exhibit 4.3
                                    
                                    
            Independent Certified Public Accountants' Consent
     
     We have issued our report dated October 16, 1995 on the statements
of condition and related bond portfolios of Insured Municipals Income
Trust, 186th Insured Multi-Series (Colorado IM-IT, New Jersey IM-IT and
Pennsylvania IM-IT Trusts) as of October 16, 1995 contained in the
Registration Statement on Form S-6 and Prospectus.  We consent to the use
of our report in the Registration Statement and Prospectus and to the use
of our name as it appears under the caption "Other Matters-Independent
Certified Public Accountants".


                                    Grant Thornton LLP

Chicago, Illinois
October 16, 1995


<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
This report reflects the current period taken from 487 on October 16, 1995 it is
unaudited
</LEGEND>
<SERIES>
<NUMBER> 77
<NAME> Colorado IM-IT
       
<CAPTION>
<S>                         <C>                  
<PERIOD-TYPE>               YEAR                 
<FISCAL-YEAR-END>               SEP-30-1996     
<PERIOD-START>                  OCT-16-1995     
<PERIOD-END>                    OCT-16-1995     
<INVESTMENTS-AT-COST>               2926242     
<INVESTMENTS-AT-VALUE>              2926242     
<RECEIVABLES>                         36546     
<ASSETS-OTHER>                            0     
<OTHER-ITEMS-ASSETS>                      0     
<TOTAL-ASSETS>                      2962788     
<PAYABLE-FOR-SECURITIES>                  0     
<SENIOR-LONG-TERM-DEBT>                   0     
<OTHER-ITEMS-LIABILITIES>             36546     
<TOTAL-LIABILITIES>                   36546     
<SENIOR-EQUITY>                           0     
<PAID-IN-CAPITAL-COMMON>            2926242     
<SHARES-COMMON-STOCK>                  3077     
<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>                        2926242     
<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>                   0     
<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>

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
This report reflects the current period taken from 487 on October 16, 1995 it is
unaudited
</LEGEND>
<SERIES>
<NUMBER> 106
<NAME> New Jersey IM-IT
       
<CAPTION>
<S>                         <C>                  
<PERIOD-TYPE>               YEAR                 
<FISCAL-YEAR-END>               SEP-30-1996     
<PERIOD-START>                  OCT-16-1995     
<PERIOD-END>                    OCT-16-1995     
<INVESTMENTS-AT-COST>               2965231     
<INVESTMENTS-AT-VALUE>              2965231     
<RECEIVABLES>                         56606     
<ASSETS-OTHER>                            0     
<OTHER-ITEMS-ASSETS>                      0     
<TOTAL-ASSETS>                      3021837     
<PAYABLE-FOR-SECURITIES>                  0     
<SENIOR-LONG-TERM-DEBT>                   0     
<OTHER-ITEMS-LIABILITIES>             56606     
<TOTAL-LIABILITIES>                   56606     
<SENIOR-EQUITY>                           0     
<PAID-IN-CAPITAL-COMMON>            2965231     
<SHARES-COMMON-STOCK>                  3118     
<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>                        2965231     
<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>                   0     
<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>

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
This report reflects the current period taken from 487 on October 16, 1995 it is
unaudited
</LEGEND>
<SERIES>
<NUMBER> 208
<NAME> Pennsylvania IM-IT
       
<CAPTION>
<S>                         <C>                  
<PERIOD-TYPE>               YEAR                 
<FISCAL-YEAR-END>               SEP-30-1996     
<PERIOD-START>                  OCT-16-1995     
<PERIOD-END>                    OCT-16-1995     
<INVESTMENTS-AT-COST>               2873941     
<INVESTMENTS-AT-VALUE>              2873941     
<RECEIVABLES>                         31199     
<ASSETS-OTHER>                            0     
<OTHER-ITEMS-ASSETS>                      0     
<TOTAL-ASSETS>                      2905140     
<PAYABLE-FOR-SECURITIES>                  0     
<SENIOR-LONG-TERM-DEBT>                   0     
<OTHER-ITEMS-LIABILITIES>             31199     
<TOTAL-LIABILITIES>                   31199     
<SENIOR-EQUITY>                           0     
<PAID-IN-CAPITAL-COMMON>            2873941     
<SHARES-COMMON-STOCK>                  3022     
<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>                        2873941     
<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>                   0     
<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>


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