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SIGNATURE PAUL SCHUBERT
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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Insured Municipal Income Fund Inc.
N-SAR Exhibits
Item 77 (Q)(1)
For period ending March 31, 1999
File number 811-7528
At a Board of Directors meeting held on November 12, 1998,
the directors approved an amendment to the by-laws
concerning submission of shareholder proposals. See
amendment to the by-laws below:
BY-LAWS AMENDMENT
The Fund's By-Laws were amended by adding the following
Sections 9 and 10 to Article II:
Section 9. NOMINATION. Subject to the rights of
holders of any class or series of stock having a preference
over the Corporation's common stock as to dividends or upon
liquidation, nominations for the election of directors may
be made by the Board of Directors or a committee appointed
by the Board of Directors or by any stockholder who is entitled
to vote for the election of directors. However, any such
stockholder may nominate a director only by notice in writing
delivered or mailed by first class United States mail, postage
prepaid, to the Secretary of the Corporation, and received by
the Secretary not less than (i) with respect to any nomination
to be introduced at an annual meeting of stockholders, one
hundred and twenty days in advance of the anniversary of the
date the Corporation's proxy statement was first released to
stockholders in connection with the previous year's annual
meeting, and (ii) with respect to any nomination to be
introduced at a special meeting of stockholders, the close
of business on the seventh day following the date on which
notice of such meeting is first given to stockholders. Each
such notice shall set forth: (a) the name and address of the
stockholder who intends to make the nomination and of the
person or persons to be nominated; (b) a representation that
the stockholder is a holder of record or beneficial owner of
stock of the Corporation entitled to vote at such meeting
(together with such proof thereof as would meet the requirements
for proposals that are to be included in the Corporation's
proxy statements pursuant to Rule 14a-8 under the Securities
Exchange Act of 1934, as amended, or any successor to such Rule)
and intends to appear in person or by proxy at the meeting to
nominate the person or persons specified in the notice; (c)
the class and number of shares of stock held of record, owned
beneficially and represented by proxy by such stockholder
as of the record date for the meeting (if such date shall
then have been
made publicly available) and as of the date of such
notice. The chairperson of the meeting may refuse to
acknowledge a nomination by any stockholder that is not made
in compliance with the foregoing procedure.
Section 10. STOCKHOLDER PROPOSAL. Any stockholder who is
entitled to vote in the election of directors may submit to the
Board of Directors proposals to be considered for submission to
the stockholders of the Corporation for their vote. The introduction
of any stockholder proposal that the Board of Directors decides
should be voted on by the stockholders of the Corporation, shall
be made by notice in writing delivered or mailed by first class
United States mail, postage prepaid, to the Secretary of the
Corporation, and received by the Secretary not less than (i) with
respect to any proposal to be introduced at an annual meeting
of stockholders, one hundred and twenty days in advance of the
anniversary of the date the Corporation's proxy statement was
first released to stockholders in connection with the previous
year's annual meeting, and (ii) with respect to any proposal
to be introduced at a special meeting of stockholders, the close
of business on the seventh day following the date on which notice
of such meeting is first given to stockholders. Each such notice
shall set forth: (a) the proposal to be introduced; (b) the name
and address of the stockholder who intends to make the proposal;
(c) a representation that the stockholder is a holder of record
or beneficial owner of stock of the Corporation entitled to vote
at such meeting (together with such proof thereof as would meet
the requirements for proposals that are to be included in the
Corporation's proxy statements pursuant to Rule 14a-8 under the
Securities Exchange Act of 1934, as amended, or any successor
to such Rule) and intends to appear in person or by proxy at
the meeting to introduce the proposal or proposals, specified
in the notice; and (d) the class and number of shares of stock
held of record, owned beneficially and represented by proxy by
such stockholder as of the record date for the meeting (if such
date shall then have been made publicly available) and as of
the date of such notice. The chairperson of the meeting may
refuse to acknowledge the introduction of any stockholder proposal
not made in compliance with the foregoing procedure.
Report of Independent Auditors
To the Shareholders and Board of Directors of
All-American Term Trust Inc.
In planning and performing our audit of the financial
statements of All-American Term Trust Inc. for the year
ended January 31, 1998, we considered its internal control,
including control activities for safeguarding securities, in
order to determine our auditing procedures for the purpose
of expressing our opinion on the financial statements and
to comply with the requirements of Form
N-SAR, not to provide assurance on the internal control.
The management of All-American Term Trust Inc. is
responsible for establishing and maintaining internal
control. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected
benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements for external
purposes that are fairly presented in conformity with generally
accepted accounting principles. Those controls include the
safeguarding of assets against unauthorized acquisition,
use or disposition.
Because of inherent limitations in internal control,
errors or fraud may occur and not be detected. Also, projection
of any evaluation of internal control to future periods
is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness
of the design and operation may deteriorate.
Our consideration of the internal control would not
necessarily disclose all matters in the internal control
that might be material weaknesses under standards
established by the American Institute of Certified
Public Accountants. A material weakness is a condition
in which the design or operation of one or more of the internal
control components does not reduce to a relatively low level
the risk that errors or fraud in amounts that would be material in
relation to the financial statements being audited may occur and
not be detected within a timely period by employees in the
normal course of performing their assigned functions.
However, we noted no matters involving the internal control
and its operation, including controls for safeguarding securities,
that we consider to be material weaknesses as defined above at
January 31, 1998.
This report is intended solely for the information and use of
the shareholders, board of directors and management of
All-American Term Trust Inc. and the Securities and
Exchange Commission.
ERNST & YOUNG LLP
New York, New York
March 18, 1998
