Insured California Intermediate Term Portfolio Series 12
File No. 33-50275
Delaware Portfolio Series 14
File No. 33-50977
Investment Company Act No. 811-3676
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 3
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:
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA INTERMEDIATE TERM PORTFOLIO SERIES
12
DELAWARE PORTFOLIO SERIES 14
B. Name of Depositor:
DEAN WITTER REYNOLDS INC.
C. Complete address of Depositor's principal executive
office:
DEAN WITTER REYNOLDS INC.
Two World Trade Center
New York, New York 10048
D. Name and complete address of agent for service:
Mr. Michael D. Browne
Dean Witter Reynolds Inc.
Unit Trust Department
Two World Trade Center, 59th Floor
New York, New York 10048
Copy to:
Kenneth W. Orce, Esq.
Cahill Gordon & Reindel
80 Pine Street
New York, New York 10005
Check box if it is proposed that this filing should
/x/ become effective immediately upon filing pursuant to
paragraph(b) of Rule 485.
Pursuant to Rule 429(b) under the Securities Act of
1933, the Registration Statement and prospectus
contained herein relates to Registration Statements
Nos.:
33-50275
33-50977
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 Front Cover
(b) Title of securities issued
2. Name and address of Depositor Table of Contents
3. Name and address of Trustee Table of Contents
4. Name and address of principal Table of Contents
Underwriter
5. Organization of Trust Introduction
6. Execution and termination of Introduction; Amendment
Indenture and Termination of the
Indenture
7. Changes of name *30
8. Fiscal Year Included in Form N-8B-2
9. Litigation *30
II. General Description of the Trust
and Securities of the Trust
10. General Information regarding
Trust's Securities and Rights
of Holders
(a) Type of Securities Rights of Unit Holders
(Registered or Bearer)
(b) Type of Securities Administration of the
(Cumulative or
_________________________
*30 Not applicable, answer negative or not required.
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
Distributive) Trust-Distribution
(c) Rights of Holders as to Redemption; Public
Withdrawal or Redemption Offering of Units-
Secondary Market
(d) Rights of Holders as to Public Offering of
conversion, transfer, etc. Units-Secondary Market;
Exchange Option;
Redemption; Rights of
Unit Holders-
Certificates
(e) Lapses or defaults with *30
respect to periodic
payment plan certificates
(f) Voting rights as to Rights of Unit Holders-
Securities under the Certain Limitations
Indenture
(g) Notice to Holders as to Amendment and
change in: Termination of the
Indenture
1) Assets of Trust Administration of the
Trust-Reports to Unit
Holders; The Trust-
Summary Description of
the Portfolios
2) Terms and Conditions Amendment and
of Trust's Securities Termination of the
Indenture
3) Provisions of Trust Amendment and
Termination of the
Indenture
4) Identity of Depositor Sponsor; Trustee
and Trustee
(h) Security Holders' consent
required to change:
_________________________
*30 Not applicable, answer negative or not required.
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
1) Composition of assets Amendment and
of Trust Termination of the
Indenture
2) Terms and conditions Amendment and
of Trust's Securities Termination of the
Indenture
3) Provisions of Amendment and
Indenture Termination of the
Indenture
4) Identity of Depositor *30
and Trustee
(i) Other Provisions Cover of Prospectus;
Tax Status
11. Type of securities comprising The Trust-Summary
units Description of the
Portfolios; Objectives
and Securities
Selection; The Trust-
Special Considerations
12. Type of securities comprising *30
periodic payment certificates
13. (a) Load, fees, expenses, etc. Summary of Essential
Information; Public
Offering of Units-
Public Offering Price;-
Profit of Sponsor;-
Volume Discount;
Expenses and Charges
(b) Certain information *30
regarding periodic payment
certificates
(c) Certain percentages Summary of Essential
Information; Public
Offering of Units-
Public Offering Price;-
Profit of Sponsor;-
Volume Discount
_________________________
*30 Not applicable, answer negative or not required.
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
(d) Price differentials Public Offering of
Units - Public Offering
Price
- Volume Discount
(e) Certain other fees, etc. Rights of Unit Holders
payable by holders - Certificates
(f) Certain profits receivable Redemption -- Purchase
by depositor, principal by the Sponsors of
underwriters, trustee or Units Tendered for
affiliated persons Redemption
(g) Ratio of annual charges to *30
income
14. Issuance of trust's securities Introduction; Rights of
Unit Holders -
Certificates
15. Receipt and handling of Public Offering of
payments from purchasers Units-Profit of Sponsor
16. Acquisition and disposition of Introduction; Amendment
underlying securities and Termination of the
Indenture; Objectives
and Securities
Selection; The Trust-
Summary Description of
the Portfolio; Sponsor-
Responsibility
17. Withdrawal or redemption by Redemption; Public
Security Holders Offering of Units-
Secondary Market
18. (a) Receipt and disposition of Administration of the
income Trust; Reinvestment
Programs
(b) Reinvestment of Reinvestment Programs
distributions
(c) Reserves or special fund Administration of the
Trust-Distribution
(d) Schedule of distribution *30
_________________________
*30 Not applicable, answer negative or not required.
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
19. Records, accounts and report Administration of the
Trust-Records and
Accounts;-Reports to
Unit Holders
20. Certain miscellaneous Amendment and
provisions of the Indenture Termination of the
Indenture; Sponsor -
Limitation on Liability
- Resignation; Trustee
- Limitation on
Liability - Resignation
21. Loans to security holders *30
22. Limitations on liability Sponsor, Trustee;
Evaluator - Limitation
on Liability
23. Bonding arrangements Included on Form N-8B-2
24. Other material provisions of *30
the Indenture
III. Organization Personnel and
Affiliated Persons of Depositor
25. Organization of Depositor Sponsor
26. Fees received by Depositor Expenses and Charges -
fees; Public Offering
of Units-Profit of
Sponsor
27. Business of Depositor Sponsor and Included in
Form N-8B-2
28. Certain information as to Included in Form N-8B-2
officials and affiliated
persons of Depositor
29. Voting securities of Depositor Included in Form N-8B-2
30. Persons controlling Depositor *30
31. Payments by Depositor for *30
_________________________
*30 Not applicable, answer negative or not required.
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
certain other services
32. Payments by Depositor for *30
certain other services rendered
to trust
33. Remuneration of employees of *30
Depositor for certain services
rendered to trust
34. Remuneration of other persons *30
for certain services rendered
to trust
IV. Distribution and Redemption of Securities
35. Distribution of trust's Public Offering of
securities by states Units-Public
Distribution
36. Suspension of sales of trust's *30
securities
37. Revocation of authority to *30
distribute
38. (a) Method of distribution Public Offering of
(b) Underwriting agreements Units
(c) Selling agreements
39. (a) Organization of principal Sponsor
underwriter
(b) N.A.S.D. membership of
principal underwriter
40. Certain fees received by Public Offering of
principal underwriter Units-Profit of Sponsor
41. (a) Business of principal Sponsor
underwriter
(b) Branch officers of *30
principal underwriter
(c) Salesman of principal *30
underwriter
_________________________
*30 Not applicable, answer negative or not required.
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
42. Ownership of trust's securities *30
by certain persons
43. Certain brokerage commissions *30
received by principal
underwriter
44. (a) Method of valuation Public Offering of
Units
(b) Schedule as to offering *30
Price
(c) Variation in offering Public Offering of
price to certain persons Units--Volume Discount;
Exchange Option
45. Suspension of redemption rights *30
46. (a) Redemption valuation Public Offering of
Units-Secondary Market;
Redemption
(b) Schedule as to redemption *30
price
47. Maintenance of position in See items 10(d), 44 and
underlying securities 46
V. Information concerning the Trustee or Custodian
48. Organization and regulation of Trustee
Trustee
49. Fees and expenses of Trustee Expenses and Charges
50. Trustee's lien Expenses and Charges
VI. Information concerning Insurance
of Holders of Securities
51. (a) Name and address of *30
Insurance Company
(b) Type of policies *30
_________________________
*30 Not applicable, answer negative or not required.
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
(c) Type of risks insured and *30
excluded
(d) Coverage of policies *30
(e) Beneficiaries of policies *30
(f) Terms and manner of *30
cancellation
(g) Method of determining *30
premiums
(h) Amount of aggregate *30
premiums paid
(i) Who receives any part of *30
premiums
(j) Other material provisions *30
of the Trust relating to
insurance
VII. Policy of Registrant
52. (a) Method of selecting and Introduction;
eliminating securities Objectives and
from the Trust Securities Selection;
The Trust - Summary
Description of the
Portfolio; Sponsor -
Responsibility
(b) Elimination of securities *30
from the Trust
(c) Policy of Trust regarding Introduction;
substitution and Objectives and
elimination of securities Securities Selection;
Sponsor -
Responsibility
(d) Description of any *30
fundamental policy of the
Trust
_________________________
*30 Not applicable, answer negative or not required.
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
53. Taxable status of the Trust Cover of Prospectus;
Tax Status
VIII. Financial and Statistical Information
54. Information regarding the *30
Trust's past ten fiscal years
55. Certain information regarding *30
periodic payment plan
certificates
56. Certain information regarding *30
periodic payment plan
certificates
57. Certain information regarding *30
periodic payment plan
certificates
58. Certain information regarding *30
periodic payment plan
certificates
59. Financial statements Statement of Financial
(Instruction 1(c) to Form S-6) Condition
_________________________
*30 Not applicable, answer negative or not required.
LOGO
DEAN WITTER SELECT
MUNICIPAL TRUST
INSURED CALIFORNIA INTERMEDIATE TERM PORTFOLIO SERIES 12
Standard & Poor's Corporation Rating: AAA
DELAWARE PORTFOLIO SERIES 14
(Intermediate-Long Term Maturity)
(Unit Investment Trusts)
These Trusts were formed for the purpose of providing interest
income which in the opinion of bond counsel is, under existing
law, excludable from gross income for Federal income tax
purposes (except in certain instances depending on the Unit
Holders) and, in the case of a State Trust, is exempt from
state income taxes to individual Unit Holders resident in the
state for which the State Trust is named, through investment in
a fixed portfolio consisting primarily of investment grade
intermediate-long term (or intermediate term, in the case of
the Insured California Intermediate Term Trust) state,
municipal and public authority debt obligations. The value of
the Units of each of the Trusts will fluctuate with the value
of the portfolio of underlying Securities. The portfolio of
the Insured California Intermediate Term Trust was structured
as of the Date of Deposit to return to Unit Holders each year
beginning in 1999, approximately 20% of the per Unit principal
amount of the Securities included in the Trust. (See:
"Schedule of Portfolio Securities".) The Units of the Insured
California Intermediate Term Trust only are rated AAA by
Standard & Poor's Corporation because all of the Securities in
such Trust have been irrevocably insured by insurance either
provided by the respective Issuers thereof or obtained by third
parties. Minimum Purchase: 1 Unit for the Delaware Uninsured
Trust and $1,000 for the Insured California Intermediate Term
Trust.
This Prospectus consists of two parts. Part A contains a
Summary of Essential Information and descriptive material
relating to the Trusts, and the portfolio and financial
statements of each Trust. Part B contains a general
description of the Trusts. Part A may not be distributed
unless accompanied by Part B.
The Initial Public Offering of Units in the Trusts has been
completed. The Units offered hereby are issued and outstanding
Units which have been acquired by the Sponsor either by
purchase from the Trustee of Units tendered for redemption or
in the Secondary Market.
Sponsor: LOGO DEAN WITTER REYNOLDS INC.
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.
Read and retain both parts of this Prospectus for future
reference.
Units of the Trusts are not deposits or obligations of, or
guaranteed or endorsed by, any bank, and the Units are not
federally insured by the Federal Deposit Insurance Corporation,
Federal Reserve Board, or any other agency.
Prospectus Part A dated April 17, 1997
THIS PROSPECTUS DOES NOT CONTAIN ALL OF THE INFORMATION WITH
RESPECT TO THE INVESTMENT COMPANY SET FORTH IN ITS REGISTRATION
STATEMENT AND EXHIBITS RELATING THERETO WHICH HAVE BEEN 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.
THE USE OF THE TERM "INSURED" IN THE NAME OF A TRUST DOES NOT
MEAN THAT THE TRUST UNITS ARE INSURED BY ANY GOVERNMENTAL OR
PRIVATE ORGANIZATION. THE TRUST UNITS ARE NOT INSURED.
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA INTERMEDIATE TERM PORTFOLIO SERIES 12
DELAWARE PORTFOLIO SERIES 14
TABLE OF CONTENTS
PART A Page
Table of Contents ................................ A-1
Summary of Essential Information ................. A-3
The Insured California Intermediate
Term Trust ................................ A-11
The Delaware Uninsured Trust ................ A-21
Independent Auditor's Report ..................... F-1
PART B
Introduction ..................................... 1
The Trust ........................................ 2
Special Considerations ...................... 2
Summary Description of the Portfolios ....... 3
Insurance on the Securities in an Insured Trust .. 21
Objectives and Securities Selection .............. 25
The Units ........................................ 26
Tax Status ....................................... 27
Public Offering of Units ......................... 32
Public Offering Price ....................... 32
Public Distribution ......................... 33
Secondary Market ............................ 34
Profit of Sponsor ........................... 35
Volume Discount ............................. 35
Exchange Option .................................. 36
Reinvestment Programs ............................ 37
Redemption ....................................... 38
Tender of Units 38
Computation of Redemption Price per 39
Unit ......................................
Purchase by the Sponsor of Units 39
Tendered for Redemption ...................
A-1
Rights of Unit Holders ........................... 40
Certificates ................................ 40
Certain Limitations ......................... 40
Expenses and Charges ............................. 40
Initial Expenses ............................ 40
Fees ........................................ 40
Other Charges ............................... 41
Administration of the Trust ...................... 42
Records and Accounts ........................ 42
Distribution ................................ 42
Distribution of Interest and Principal ...... 42
Reports to Unit Holders ..................... 44
Sponsor .......................................... 45
Trustee .......................................... 47
Evaluator ........................................ 48
Amendment and Termination of the Indenture ....... 49
Legal Opinions ................................... 50
Auditors ......................................... 50
Bond Ratings ..................................... 50
Federal Tax Free vs. Taxable Income .............. 54
Sponsor:
Dean Witter Reynolds Inc.
Two World Trade Center
New York, New York 10048
Evaluator:
Kenny S&P Evaluation Services,
A Division of J.J. Kenny Co., Inc.
65 Broadway
New York, New York 10006
Trustee:
The Bank of New York
101 Barclay Street
New York, New York 10286
NO PERSON IS AUTHORIZED TO GIVE ANY INFORMATION OR TO
MAKE ANY REPRESENTATIONS WITH RESPECT TO THIS INVESTMENT
COMPANY NOT CONTAINED IN THIS PROSPECTUS; AND ANY INFORMATION
OR REPRESENTATION NOT CONTAINED HEREIN MUST NOT BE RELIED UPON
AS HAVING BEEN AUTHORIZED. 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.
A-2<TABLE>
<CAPTION>
SUMMARY OF ESSENTIAL INFORMATION
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA INTERMEDIATE TERM PORTFOLIO SERIES 12
As of February 28, 1997
<S> <C> <S> <C>
FACE AMOUNT OF SECURITIES $4,525,000.00 DAILY RATE AT WHICH ESTIMATED NET
INTEREST ACCRUES PER 1,000 UNITS .0127%
NUMBER OF UNITS 4,525,796
ESTIMATED CURRENT RETURN (based on
FRACTIONAL UNDIVIDED INTEREST IN THE Public Offering Price)<F2> 4.384%
TRUST REPRESENTED BY EACH UNIT 1/4,525,796th
ESTIMATED LONG TERM RETURN (based on
PUBLIC OFFERING PRICE Public Offering Price)<F2> 3.642%
Aggregate bid side evaluation
of Securities in the Trust $4,593,815.00 MONTHLY INTEREST DISTRIBUTIONS
Divided by 4,525,796 Units Estimated net annual interest rate
multiplied by 1,000 $ 1,015.03 per 1,000 Units times $1,000 $45.62
Divided by 12 $ 3.84
Plus sales charge of 2.107% of
Public Offering Price (2.152% RECORD DATE: The ninth day of each month
of net amount invested in
Securities) 21.84 DISTRIBUTION DATE: The fifteenth day
of each month
Public Offering Price per 1,000 Units 1,036.87
Plus undistributed principal and MINIMUM PRINCIPAL DISTRIBUTION: No distri-
net investment income and accrued bution need be made from the Principal
interest 3.73<F1> Account if balance therein is less than
$1.00 per 1,000 Units outstanding
Adjusted Public Offering Price $ 1,040.60
TRUSTEE'S ANNUAL FEE AND EXPENSES (includ-
ing estimated expenses and Evaluator's
SPONSOR'S REPURCHASE PRICE AND fee) $2.25 per $1,000 face amount of
REDEMPTION PRICE PER 1,000 UNITS underlying Securities $ 2.25
(based on bid side evaluation of
underlying Securities, $21.84 SPONSOR'S ANNUAL PORTFOLIO SUPERVISION
less than Adjusted Public Offering FEE: Maximum of $.25 per $1,000 face
Price per 1,000 Units) $ 1,018.76 amount of underlying Securities .25
TOTAL ESTIMATED ANNUAL EXPENSES PER
CALCULATION OF ESTIMATED NET ANNUAL 1,000 UNITS $ 2.50
INTEREST RATE PER 1,000 UNITS
(based on face amount of $1 per EVALUATOR'S FEE FOR EACH EVALUATION:
Unit) $.40 per issue of Security
Annual interest rate per 1,000
Units 4.812% EVALUATION TIME: 4:00 P.M. New York Time
Less estimated annual expenses per MANDATORY TERMINATION DATE: December 31, 2033
1,000 Units ($2.50) expressed as
a percentage .250% DISCRETIONARY LIQUIDATION AMOUNT: The Trust
may be terminated by the Sponsor if the value
Estimated net annual interest rate of the portfolio of the Trust at any time is
per 1,000 Units 4.562% less than $2,000,000.
<F1>Figure shown includes interest accrued (net of expenses) on the underlying Securities to the expected
date of settlement (normally three business days after purchase) for Units purchased on February 28, 1997.
<F2>The estimated current return and estimated long term return are increased for transactions entitled to
a reduced sales charge. (See "The Units - Estimated Annual Income and Current Return" and "Public Offering
of Units - Volume Discount" in Part B of this Prospectus.)
A-3
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SUMMARY OF ESSENTIAL INFORMATION
DEAN WITTER SELECT MUNICIPAL TRUST
DELAWARE PORTFOLIO SERIES 14
As of February 28, 1997
<S> <C> <S> <C>
FACE AMOUNT OF SECURITIES $3,575,000.00 DAILY RATE AT WHICH ESTIMATED NET
INTEREST ACCRUES PER UNIT .0131%
NUMBER OF UNITS 3,574
ESTIMATED CURRENT RETURN (based on
FRACTIONAL UNDIVIDED INTEREST IN THE Public Offering Price)<F14> 4.529%
TRUST REPRESENTED BY EACH UNIT 1/3,574th
ESTIMATED LONG TERM RETURN (based on
Public Offering Price)<F14> 4.140%
PUBLIC OFFERING PRICE
Aggregate bid side evaluation MONTHLY INTEREST DISTRIBUTIONS
of Securities in the Trust $3,604,999.00
Estimated net annual interest rate
Divided by 3,574 Units $ 1,008.67 per Unit times $1,000 $47.24
Divided by 12 $ 3.94
Plus sales charge of 3.294% of
Public Offering Price (3.406% RECORD DATE: The ninth day of each month
of net amount invested in
Securities) 34.36 DISTRIBUTION DATE: The fifteenth day
of each month
Public Offering Price per Unit 1,043.03
plus undistributed principal and MINIMUM PRINCIPAL DISTRIBUTION: No distri-
net investment income and accrued bution need be made from the Principal
interest 3.91<F13> Account if balance therein is less than
$1 per Unit outstanding
Adjusted Public Offering Price $ 1,046.94
TRUSTEE'S ANNUAL FEE AND EXPENSES (includ-
ing estimated expenses and Evaluator's
SPONSOR'S REPURCHASE PRICE AND fee) $2.24 per $1,000 face amount of
REDEMPTION PRICE PER UNIT underlying Securities $ 2.24
(based on bid side evaluation of
underlying Securities, $34.36 SPONSOR'S ANNUAL PORTFOLIO SUPERVISION
less than Adjusted Public Offering FEE: Maximum of $.25 per $1,000 face
Price per Unit) $ 1,012.58 amount of underlying Securities .25
CALCULATION OF ESTIMATED NET ANNUAL TOTAL ESTIMATED ANNUAL EXPENSES PER
INTEREST RATE PER UNIT UNIT $ 2.49
(based on face amount of $1,000 per
Unit) EVALUATOR'S FEE FOR EACH EVALUATION:
Minimum of $.40 per issue of Security
Annual interest rate per
Unit 4.973% EVALUATION TIME: 4:00 P.M. New York Time
Less estimated annual expenses per MANDATORY TERMINATION DATE: December 31, 2033
Unit ($2.49) expressed as
a percentage .249% DISCRETIONARY LIQUIDATION AMOUNT: The Trust
may be terminated by the Sponsor if the
Estimated net annual interest rate value of the Portfolio of the Trust at any
per Unit 4.724% time is less than $1,490,000.
<F13>Figure shown includes interest accrued (net of expenses) on the underlying Securities to the expected
date of settlement (normally three business days after purchase) for Units purchased on February 28, 1997.
<F14>The estimated current return and estimated long term return are increased for transactions entitled to
a reduced sales charge. (See "The Units - Estimated Annual Income and Current Return" and "Public Offering
of Units - Volume Discount" in Part B of this Prospectus.)
A-4
</TABLE>
A-3
SUMMARY OF ESSENTIAL INFORMATION
(Continued)
THE TRUSTS -- The Dean Witter Select Municipal Trust, Insured
California Intermediate Term Portfolio Series 12 (the "Insured
California Intermediate Term Trust") and Delaware Portfolio
Series 14 (Intermediate-Long Term Maturity) (the "Delaware
Uninsured Trust") are two separate unit investment trusts
(collectively, the "Trusts" or the "State Trusts") created on
March 30, 1994 (the "Date of Deposit") under the laws of the
State of New York pursuant to an Indenture as defined in
Part B. Each of the Trusts is composed of "investment grade"
intermediate-long term or, in the case of the Insured
California Intermediate Term Trust, intermediate term,
interest-bearing municipal bonds (the "Securities"). (For a
description of the meaning of "investment grade" securities,
see: "Bond Ratings", in Part B.) The objectives of each Trust
are: (1) the receipt of income which, under existing law, is
excludable from gross income for Federal income tax purposes
(except in certain instances depending on the Unit Holders)
and, in the case of a State Trust, is exempt from state income
taxation to individual Unit Holders resident in the state for
which the State Trust is named; and (2) the conservation of
capital. The portfolio of the Insured California Intermediate
Term Trust was structured as of the Date of Deposit to return
to Unit Holders each year beginning in 1999, approximately 20%
of the per Unit principal amount of the Securities included in
the Trust. (See: "Schedule of Portfolio Securities".) The
payment of interest and the preservation of principal of the
Trusts is dependent on the continuing ability of the respective
Issuers of the Securities or the bond insurers thereof to meet
their obligations to pay principal and interest on the
Securities. Therefore, there is no guarantee that the
objectives of the Trusts will be achieved. All of the
Securities in each of the Trusts are obligations of the state
for which such State Trust is named or of the counties,
municipalities or public authorities thereof, or of the
Commonwealth of Puerto Rico. Interest on the Securities, in
the opinion of bond counsel or special tax counsel to the
Issuers thereof, under existing law, is excludable from gross
income for Federal income tax purposes (except in certain
instances depending on the Unit Holders) and, in the case of a
State Trust, is exempt from state income taxes when owned by
individual Unit Holders resident in the state for which the
State Trust is named. (For a discussion of certain tax aspects
of the Trusts, see: "Tax Status", in Part B. For a discussion
of certain state tax aspects of a particular Trust, see:
"Special Considerations Regarding California Securities --
California Tax Status" and "Special Considerations Regarding
Delaware Securities -- Delaware Tax Status", herein.)
A-4
OFFERS TO SELL OR THE SOLICITATION OF ORDERS TO BUY
MAY ONLY BE MADE IN THOSE JURISDICTIONS IN WHICH THE UNITS OF
EACH TRUST HAVE BEEN REGISTERED. INVESTORS SHOULD CONTACT
ACCOUNT EXECUTIVES OF THE SPONSOR TO DETERMINE WHETHER THE
UNITS OF A PARTICULAR TRUST HAVE BEEN REGISTERED FOR SALE IN
THE STATE IN WHICH THEY RESIDE.
INSURANCE -- A policy of insurance guaranteeing the
scheduled payment of principal and interest ("Bond Insurance")
has been obtained from the bond insurers indicated on the
respective "Schedule of Portfolio Securities", herein, and paid
for by the Issuers of the Securities, or by third parties, for
all the Securities in the Insured California Intermediate Term
Trust. The policies of Bond Insurance are non-cancellable and
cover default in the payment of principal and interest on the
Securities so insured so long as such Securities remain
outstanding, whether they are held in the Insured California
Intermediate Term Trust or not. Bond Insurance on all
Securities in the Insured California Intermediate Term Trust
relates only to the Securities in such Insured California
Intermediate Term Trust and not to the Units offered hereby.
No representation is made herein as to any bond insurer's
ability to meet its obligations under a policy of Bond
Insurance relating to a Security in the Insured California
Intermediate Term Trust. However, as a result of such Bond
Insurance, the Securities, as well as the Units of the Insured
California Intermediate Term Trust only, are rated "AAA" by
Standard & Poor's Corporation. There can be no assurance that
such "AAA" ratings will be retained. (See: "Insurance on the
Securities in an Insured Trust", in Part B.)
MONTHLY DISTRIBUTIONS -- Monthly distributions of
principal, premium, if any, and interest received by each Trust
will be made, on or shortly after the fifteenth day of each
month to Unit Holders of record on the ninth day of such month.
Alternatively, Unit Holders may elect to have their monthly
distributions reinvested in either of the Reinvestment Programs
of the Sponsor, neither of which are insured. (See:
"Reinvestment Programs", in Part B.)
PUBLIC OFFERING PRICE -- The Public Offering Price
per Unit of each Trust is calculated daily, and is equal to the
aggregate bid side evaluation of the underlying securities,
divided by the number of Units outstanding, plus a sales charge
calculated by reference to "Sales Charge/Volume Discount",
below, plus the per Unit balance in the Interest and Principal
Accounts. Units are offered at the Public Offering Price, plus
accrued interest. (See: "Public Offering of Units", in
Part B.)
ESTIMATED CURRENT RETURN -- The Estimated Current
Return shows the return based on the Public Offering Price and
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is computed by multiplying the estimated net annual interest
rate per Unit (which shows the return based on a $1,000 face
amount) by $1,000 and dividing the result by the Public
Offering Price (not including accrued interest). The net
annual interest rate per Unit will vary with changes in the
fees and expenses of the Trustee, the Sponsor and the Evaluator
and with the exchange, redemption, sale or maturity of the
underlying Securities. In addition, the Public Offering Price
will also vary with fluctuations in the bid side evaluation of
the underlying Securities. Therefore, it can be expected that
the Estimated Current Return will fluctuate in the future.
(See: "The Units -- Estimated Annual Income and Current
Return", in Part B.)
MARKET FOR UNITS -- The Sponsor, though not obligated
to do so, intends to maintain a market for the Units based on
the aggregate bid side evaluation of the underlying Securities,
as more fully described in Part B -- "Public Offering of Units
- -- Secondary Market". If such market is not maintained, a Unit
Holder will be able to dispose of its Units through redemption
at prices based on the aggregate bid side evaluation of the
underlying Securities. (See: "Redemption", in Part B.)
Market conditions may cause such prices to be greater or less
than the amount paid for Units.
SPECIAL CONSIDERATIONS -- An investment in Units of
the Trusts should be made with an understanding of the risks
which an investment in fixed rate intermediate-long term or
intermediate term debt obligations may entail, including the
risk that the value of the Units will decline with increases in
interest rates. The Insured California Intermediate Term Trust
is considered to be concentrated in General Revenue Lease
Payment Securities (58.71% of the aggregate market value of the
Insured California Intermediate Term Trust Portfolio). The
Delaware Uninsured Trust is considered to be concentrated in
General Obligation Securities and Highway and Transportation
Securities (50.76% and 34.89%, respectively, of the aggregate
market value of the Delaware Uninsured Trust Portfolio). (See:
"The Trust -- Special Considerations" and "The Trust -- Summary
Description of the Portfolios", in Part B. See also: "The
Insured California Intermediate Term Trust" or "The Delaware
Uninsured Trust", herein, for a discussion of additional risks
relating to Units of such Trust.)
LADDERED MATURITIES -- The portfolio of the Insured
California Intermediate Term Trust was structured as of the
Date of Deposit to return to Unit Holders each year beginning
in 1999, approximately 20% of the per Unit principal amount of
the Securities included in the Trust. (See: "Schedule of
Portfolio Securities".) The timing and percentage amount of
principal return may vary from the estimated cash flow schedule
on the Date of Deposit if Securities are sold for credit
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reasons or as a result of redemptions or if an issuer calls or
fails to call a Security. Such sale, call or failure to call
may result in an increase in, a decrease in, or the elimination
of, a return of principal in one or more years. If interest
rates rise, Unit Holders may be able to reinvest their
principal distributions as received in higher-yielding
obligations. Conversely, however, if interest rates decline,
Unit Holders will be receiving payments of principal at times
when only lower-yielding investments of comparable quality are
available. Reinvesting at such time may result in an over-all
lower yield than would result from a single investment maturing
at the close of the life of the Trust.
PUBLIC DISTRIBUTION -- Sales of Units may be made
pursuant to distribution arrangements with certain banks and/or
other entities subject to regulation by the Office of the
Comptroller of the Currency which are acting as agents for
their customers. These banks and/or entities are making Units
of the Trust available to their customers on an agency basis.
A portion of the sales charge paid by these customers is
retained by or remitted to such banks or entities in an amount
equal to the fee customarily received by an agent for acting in
such capacity in connection with the purchase of Units. The
Glass Steagall Act prohibits banks from underwriting certain
securities, including Units of the Trust; however, this Act
does permit certain agency transactions, and banking regulators
have not indicated that these particular agency transactions
are impermissible under this Act. In Texas, as well as certain
other states, any bank making Units available must be
registered as a broker-dealer in that State.
OTHER INFORMATION -- The Securities in the Portfolio
of each Trust were chosen in part on the basis of their
respective maturity dates. An intermediate-term Trust contains
obligations maturing in 3 to 10 years from the Date of Deposit
and an intermediate-long term trust contains obligations
maturing in 10 to 15 years from the Date of Deposit. The
maturity date of each of the Trusts is December 31, 2033. The
latest maturity of a Security in the Insured California
Intermediate Term Trust is July 2003; and the average life to
maturity (or date of pre-refunding of a bond) of the Portfolio
of Securities therein is 4.177 years. The latest maturity of a
Security in the Delaware Uninsured Trust is October 2007; and
the average life to maturity (or date of pre-refunding of a
bond) of the Portfolio of Securities therein is 8.395 years.
The actual maturity dates of each of the Securities contained
in each Trust are shown on the respective "Schedule of
Portfolio Securities", herein.
The range of maturities of Securities in the Insured
California Intermediate Term Trust is from March 1, 1999 to
July 1, 2003. The range of maturities of Securities in the
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Delaware Uninsured Trust is from July 1, 2003 to October 1,
2007.
The Trustee shall receive annually $1.28 per $1,000
principal amount of Securities in each Trust for its services
as Trustee. See: "Expenses and Charges", in Part B, for a
description of other fees and charges which may be incurred by
a Trust.
SALES CHARGE/VOLUME DISCOUNT -- The Public Offering
Price per Unit will be computed by dividing the aggregate of
the bid prices of the Securities in a Trust by the number of
Units outstanding and then adding the appropriate sales charge
described below.
The sales charge will reflect different rates
depending upon the maturities of the various underlying
Securities. The sales charge per Unit in the secondary market
(the "Effective Sales Charge") will be computed by multiplying
the Evaluator's determination of the bid side evaluation of
each Security by a sales charge determined in accordance with
the table set forth below based upon the number of years
remaining to the maturity of each such Security, totalling all
such calculations, and dividing this total by the number of
Units then outstanding. In calculating the date of maturity, a
Security will be considered to mature on its stated maturity
date unless: (a) the Security has been called for redemption
or funds or securities have been placed in escrow to redeem it
on an earlier call date, in which case the call date will be
deemed the date on which such Security matures; or (b) the
Security is subject to a mandatory tender, in which case the
mandatory tender date will be deemed the date on which such
Security matures.
(as % of bid (as % of
Public
Time to Maturity side evaluation) Offering
Price)
Less than 1 year 0% 0%
1 year to less than 2 years 0.756% 0.75%
2 years to less than 4 years 1.523% 1.50%
4 years to less than 7 years 2.564% 2.50%
7 years to less than 11 years 3.627% 3.50%
11 years to less than 15 4.712% 4.50%
years
15 years and greater 5.820% 5.50%
The Effective Sales Charge per Unit for a sale in the
secondary market, as determined above, will be reduced on a
graduated scale for sales to any single purchaser on a single
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day of the specified number of Units (or dollar amount with
respect to the Insured California Intermediate Term Trust) of a
Trust set forth below.
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Insured
California
Delaware Intermediate Term Dealer
Uninsured Concession
Trust Trust % of as % of
Effective Effective
Number of Dollar Amount Sales Sales
Units Charge Charge
1-99........... $1-$99,999 ...... 100% 65%
100-249........ $100,000-$249,999 .................95% 62%
250-499........ $250,000-$499,999 .................85% 55%
500-999........ $500,000-$999,999 .................70% 45%
1,000 or more.. $1,000,000 or 55% 35%
more ............
To qualify for the reduced sales charge and
concession applicable to quantity purchases, the selling dealer
must confirm that the sale is to a single purchaser, as
described in "Volume Discount" in Part B of the Prospectus.
Units purchased at an Effective Sales Charge (before
volume purchase discount) of less than 3.00% of the Public
Offering Price (3.093% of the bid side evaluation of the
Securities) will not be eligible for exchange at a reduced
sales charge described under the Exchange Option.
Dealers purchasing certain dollar amounts of Units
during the life of the Trusts may be entitled to additional
concessions. The Sponsor reserves the right, at any time and
from time to time, to change the level of dealer concessions.
For further information regarding the volume
discount, see: "Public Offering of Units -- Volume Discount",
in Part B.
Note: "Auditors" in Part B is amended so that
"Deloitte & Touche" is replaced with "Deloitte & Touche LLP";
"Evaluator" in Part B is amended so that "Kenny S&P Evaluation
Services, a division of Kenny Information Systems, Inc." is
replaced with "Kenny S&P Evaluation Services, a Division of
J.J. Kenny Co., Inc." The reference to the fifth and five
business day in "Redemption -- Computation of Redemption Price
per Unit" and "Administration of the Trust -- Distribution of
Interest and Principal" in Part B is amended to read third and
three, respectively. "Insurance on the Securities in an
insured Trust" in Part B is amended to add the following
paragraph before "Ambac Indemnity":
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On December 20, 1995, Capital Guaranty Corporation
merged with a subsidiary of Financial Security Assurance
Holdings Ltd. In connection with such merger, (i) CGIC, the
principal operating subsidiary of Capital Guaranty Corporation,
became a wholly-owned subsidiary of FSA, the principal
operating subsidiary of Financial Security Assurance Holdings
Ltd., and (ii) the corporate name of CGIC was changed to
Financial Security Assurance of Maryland Inc.
Reference to Capital Guaranty in Part B shall be
deleted.
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THE INSURED CALIFORNIA INTERMEDIATE TERM TRUST
The Portfolio of the Insured California Intermediate
Term Trust consists of eight issues of Securities, all of which
were issued by Issuers located in California. One of the
issues of Securities is a general obligation of an Issuer.
Seven issues of Securities, while not backed by the taxing
power of the Issuer, are payable from revenues or receipts
derived from specific projects or other available sources. The
Insured California Intermediate Term Trust contains the
following categories of Securities:
Percentage of Aggregate
Market Value of Trust Portfolio
Category of Security (as of April 1, 1997)
General Obligation.............. 19.85%
General Revenue Lease
Payment ...................... 58.71%
Health Care and Hospital........ 19.81%
Prerefunded/Escrowed to
Maturity ..................... 1.62%
Original Issue Discount......... 40.02%
See: "The Trust -- Summary Description of the
Portfolios", in Part B, for a summary of the investment risks
associated with the type of Securities contained in the Insured
California Intermediate Term Trust. See: "Tax Status", in
Part B, for a discussion of certain tax considerations with
regard to Original Issue Discount.
Of the Original Issue Discount bonds in the Insured
California Intermediate Term Trust, approximately 2.21% of the
aggregate principal amount of the Securities in the Insured
California Intermediate Term Trust (or 1.62% of the market
value of all Securities in the Insured California Intermediate
Term Trust on April 1, 1997) are zero coupon bonds (including
bonds known as multiplier bonds, money multiplier bonds,
capital accumulator bonds, compound interest bonds and discount
maturity payment bonds).
On April 1, 1997, based on the bid side of the
market, the aggregate market value of the Securities in the
Insured California Intermediate Term Trust was $4,544,237.95.
The Securities in the Insured California Intermediate
Term Trust are insured to maturity by the insurance obtained by
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the Issuers or by third parties from the following insurance
companies: AMBAC:39.79%*; FSA:18.59%*+; FGIC:19.85%*;
MBIA:1.62%*; and Connie Lee:20.14%.a
On April 1, 1997, all of the Securities in the
Insured California Intermediate Term Trust were rated "AAA" by
Standard & Poor's Corporation because of the Bond Insurance
policies issued in respect of such Securities. (See: the
respective "Schedule of Portfolio Securities", herein, and
"Bond Ratings", in Part B.) A Security in the Portfolio may
subsequently cease to be rated or the rating assigned may be
reduced below the minimum requirements of the Insured
California Intermediate Term Trust for the acquisition of
Securities. While such events may be considered by the Sponsor
in determining whether to direct the Trustee to dispose of the
Security (see: "Sponsor -- Responsibility", in Part B), such
events do not automatically require the elimination of such
Security from the Portfolio.
SPECIAL CONSIDERATIONS REGARDING
CALIFORNIA SECURITIES
Risk Factors
Potential purchasers of the Units of a State Trust
should consider the fact that the Trust's Portfolio consists
primarily of Securities issued by the state for which such
State Trust is named or its municipalities or authorities and
realize the substantial risks associated with an investment in
such Securities. Each State Trust is subject to certain
additional risk factors:
a Percentages computed on the basis on the aggregate bid
side evaluation of the Securities in the Insured
California Intermediate Term Trust on April 1, 1997.
+ Percentage shown for FSA represents Securities originally
insured by CGIC. In December 1995, CGIC became a
subsidiary of FSA, and all policies issued by CGIC became
covered by the intercompany pooling agreement among the
FSA group of insurance companies, as a result of which all
policies issued by CGIC are backed by the same claims-
paying resources as policies issued by FSA.
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California Trust
Since the start of the 1990-91 fiscal year,
California (the "State") has faced the worst economic, fiscal
and budget conditions since the 1930s. Construction,
manufacturing (especially aerospace), exports and financial
services, among others, have all been severely affected. Job
losses have been the worst of any post-war recession and have
been estimated to exceed 800,000. While the most severe point
of the recession has been estimated to have occurred in late
1993, pre-recession job levels are not expected to be reached
for several more years.
The recession has affected State tax revenues, which
mirror economic conditions. It has also caused increased
expenditures for health and welfare programs. The State has
also been facing a structural imbalance in its budget with the
largest programs supported by the General Fund (K-12 schools
and community colleges, health, welfare and corrections)
growing at rates higher than the growth rates for the principal
revenue sources of the General Fund. (The General Fund, the
State's main operating fund, consists of revenues which are not
required to be credited to any other fund.) As a result, the
State has experienced recurring budget deficits.
Employment, income, and retail sales in the State
have shown modest increases over the past two years, indicating
some recovery from recessionary conditions. These increases
notwithstanding, pre-recession job levels are not expected to
be reached until 1997.
Together with the federal government, which is
providing over $9.5 billion in aid, the State is committed to
assisting local governments, individuals and businesses
suffering damage caused by the Northridge earthquake, as well
as to assisting in the repair and replacement of State-owned
facilities.
On December 6, 1994, Orange County, California (the
"County"), together with its pooled investment funds (the
"Pools"), filed for protection under Chapter 9 of the federal
Bankruptcy Code.
On May 2, 1995, the Bankruptcy Court approved a
settlement agreement covering claims of the other participating
entities against the County and the Pools. Most participants
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have received in cash 80% (90% for school districts) of their
Pools' investments with the balance to be paid in the future.
The State bears no existing obligation in connection
with any of the outstanding obligations or securities of the
County or any of the other participating entities. It may,
however, be necessary for the State to intervene if the County
lacks sufficient resources to maintain County administered
State programs. In this regard, the State cannot predict what,
if any, action may occur. The Legislature is considering the
County's new financial plan and other proposals relating to the
County bankruptcy, including possible State oversight of County
finances. None of the proposals, however, presently involve
any direct State financial support of the County.
1995-96 Budget
The State began the 1995-96 fiscal year with
strengthening revenues based on an improving economy and the
smallest nominal "budget gap" to be closed in many years
The 1995-96 Budget Act, signed by the Governor, on
August 3, 1995, projects General Fund revenues and transfers of
$44.1 billion. about $2.2 billion higher than projected
revenues in 1994-95. The Budget Act projects Special Fund
revenues of $12.7 billion, an increase from $12.1 billion
projected in 1994-95.
The 1995-96 Budget Act projects General Fund
expenditures and transfers of $43.4 billion, an increase of
$168 million over 1994-95. The Budget Act also projects
Special Fund expenditures of $13.4 billion, a decrease of $700
million from 1994-95 projected expenditures. The principal
features of the Budget Act were the following:
1. Proposition 98 funding for schools and community
colleges will increase by about $1 billion (General Fund) and
$1.2 billion total above revised 1994-95 levels. Because of
higher than projected revenues in 1994-95, an additional $543
million is appropriated to the 1994-95 Proposition 98
entitlement. A significant component of this amount is a block
grant of about $54 per pupil for any one-time purpose. Per-
pupil expenditures are projected to increase by another $126 in
1995-96 to $4,435. A full 2.7% cost of living allowance is
funded for the first time in several years. The budget
compromise anticipates a settlement of the CTA v. Gould
litigation.
2. Cuts in health and welfare costs totaling about
$900 million, some of which would require federal legislative
approval.
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3. A 3.5% increase in funding for the University of
California ($90 million General Fund) and the California State
University system ($24 million General Fund).
4. The Budget assumes receipt of $473 million in new
federal aid for costs of illegal immigrants, in excess of
federal government commitments. This amount is considerably
less than the summer 1994 two-year budget proposal estimate,
and is somewhat lower than the estimate in the January 1995
Governor's Budget.
5. General Fund support for the Department of
Corrections is increased by about 8 percent over 1994-95,
reflecting estimates of increased prison population. This
amount is less than was proposed in the Governor's Budget.
THE FOREGOING DISCUSSION OF THE 1995-96 FISCAL YEAR
BUDGET IS BASED IN LARGE PART ON STATEMENTS MADE IN A RECENT
"PRELIMINARY OFFICIAL STATEMENT" DISTRIBUTED BY THE STATE OF
CALIFORNIA. IN THAT DOCUMENT, THE STATE INDICATED THAT ITS
DISCUSSION OF THE FISCAL YEAR BUDGET IS BASED ON ESTIMATES AND
PROJECTIONS OF REVENUES AND EXPENDITURES FOR THE CURRENT FISCAL
YEAR AND MUST NOT BE CONSTRUED AS STATEMENTS OF FACT. THE
STATE NOTED FURTHER THAT THE ESTIMATES AND PROJECTIONS ARE
BASED UPON VARIOUS ASSUMPTIONS WHICH MAY BE AFFECTED BY
NUMEROUS FACTORS, INCLUDING FUTURE ECONOMIC CONDITIONS IN THE
STATE AND THE NATION, AND THAT THERE CAN BE NO ASSURANCE THAT
THE ESTIMATES WILL BE ACHIEVED.
State Appropriations Limit
The State is subject to an annual appropriations
limit imposed by Article XIIIB of the State Constitution (the
"Appropriations Limit"), and is prohibited from spending
"appropriations subject to limitation" in excess of the
Appropriations Limit. Article XIIIB, originally adopted in
1979. was modified substantially by Propositions 98 and 111 in
1988 and 1990, respectively. "Appropriations subject to
limitation" are authorizations to spend "proceeds of taxes,"
which consist of tax revenues and certain other funds,
including proceeds from regulatory licenses, user charges or
other fees to the extent that such proceeds exceed the
reasonable cost of providing the regulation, product or
service. The Appropriations Limit is based on the limit for
the prior year, adjusted annually for certain changes, and is
tested over consecutive two-year periods. Any excess of the
aggregate proceeds of taxes received over such two-year period
above the combined Appropriation Limits for those two years is
divided equally between transfers to K-14 districts and refunds
to taxpayers.
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Exempted from the Appropriations Limit are debt
service costs of certain bonds, court or federally mandated
costs, and, pursuant to Proposition 111, qualified capital
outlay projects and appropriations or revenues derived from any
increase in gasoline taxes and motor vehicle weight fees above
January 1,. 1990 levels. Some recent initiatives were
structured to create new tax revenues dedicated to specific
uses and expressly exempted from the Article XIIIB limits. The
Appropriations Limit may also be exceeded in cases of emergency
arising from civil disturbance or natural disaster declared by
the Governor and approved by two-thirds of the Legislature. If
not so declared and approved, the Appropriations Limit for the
next three years must be reduced by the amount of the excess.
Because of the complexities of Article XIIIB, the
ambiguities and possible inconsistencies in its terms, the
applicability of its exceptions and exemptions and the
impossibility of predicting future appropriations, the Sponsor
cannot predict the impact of this or related legislation on the
bonds in the California Trust Portfolio. Other Constitutional
amendments affecting state and local taxes and appropriations
have been proposed from time to time. If any such initiatives
are adopted, the State could be pressured to provide additional
financial assistance to local governments or appropriate
revenues as mandated by such initiatives. Propositions such as
Proposition 98 and others that may be adopted in the future,
may place increasing pressure on the State's budget over future
years, potentially reducing resources available for other State
programs, especially to the extent that the Article XIIIB
spending limit would restrain the State's ability to fund such
other programs by raising taxes.
State Indebtedness
As of August 1, 1995, the State had over $18.93
billion aggregate amount of its general obligation bonds
outstanding. General obligation bond authorizations in an
aggregate amount of approximately $2.81 billion remained
unissued as of August 1, 1995. The State also builds and
acquires capital facilities through the use of lease purchase
borrowing. As of August 1, 1995, the State had approximately
$5.56 billion of outstanding Lease-Purchase Debt.
In addition to the general obligation bonds, State
agencies and authorities had approximately $18.98 billion
aggregate principal amount of revenue bonds and notes
outstanding as of June 30, 1995. Revenue bonds represent both
obligations payable from State revenue-producing enterprises
and projects, which are not payable from the General Fund, and
conduit obligations payable only from revenues paid by private
users of facilities financed by such revenue bonds. Such
enterprises and projects include transportation projects,
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various public works and exposition projects, educational
facilities (including the California State University and
University of California systems), housing, health facilities
and pollution control facilities.
Litigation
The State is a party to numerous legal proceedings,
many of which normally occur in governmental operations. In
addition, the State is involved in certain other legal
proceedings that, if decided against the State, might require
the State to make significant future expenditures or impair
future revenue sources.
Ratings
On July 15, 1994, Standard & Poor's Corporation
("Standard & Poor's"), Moody's Investors Service, Inc.
("Moody's"), and Fitch Investors Service, Inc. ("Fitch") all
downgraded their ratings of California's general obligation
bonds. These bonds are usually sold in 20- to 30-year
increments and used to finance the construction of schools,
prisons, water systems and other projects. The ratings were
reduced by Standard & Poor's from "A+" to "A," by Moody's from
"Aa" to "Al," and by Fitch from "AA" to "A." Since 1991, when
it had a "AAA" rating, the State's rating has been downgraded
three times by all three ratings agencies. All three agencies
cite the 1994-95 Budget Act's dependence on a "questionable"
federal bailout to pay for the cost of illegal immigrants, the
Proposition 98 guaranty of a minimum portion of State revenues
for kindergarten through community college, and the persistent
deficit requiring more borrowing as reasons for the reduced
rating. Another concern was the State's reliance on a standby
mechanism which could trigger across-the-board reductions in
all State programs, and which could disrupt State operations,
particularly in fiscal year 1995-96. However, a Standard &
Poor's spokesman stated that, although the lowered ratings
means California is a riskier borrower, Standard & Poor's
anticipates that the State will pay off its debts and not
default. There can be no assurance that such ratings will
continue for any given period of time or that they will not in
the future be further revised.
Fitch upgraded its rating of California general
obligation bonds from "A" to "A+" on February 26, 1996. No
rating change was made, however, by either Moody's or Standard
& Poor's as of that date.
As a result of Orange County's Chapter 9 bankruptcy
filing on December 6, 1994, Moody's suspended the County's bond
ratings until January 6, 1995, when it reinstated them at a
rating of "Caa." On December 6, 1994, Standard & Poor's cut its
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rating of all Orange County debt from "AA-" to "CCC," a level
below investment grade and an indication of high risk and
uncertainty, and on December 8. 1994, Standard & Poor's further
reduced its rating to "D" indicating default status. Fitch
does not rate Orange County bonds. It is anticipated that as
Orange County's credit and bond ratings fall, it will have
difficulty in getting loans or selling its bonds to raise
money. Additionally, the County's bankruptcy filing could
affect about 180 municipalities, school districts, and other
municipal entities which entrusted billions of dollars to
Orange County to invest. Standard & Poor's has informed such
entities that they have been placed on negative credit watch,
the usual step prior to a downgrade of credit rating.
The Sponsor believes the information summarized above
describes some of the more significant aspects relating to the
California Trust. The sources of such information are
Preliminary Official Statements and Official Statements
relating to the State's general obligation bonds and the
State's revenue anticipation notes, or obligations of other
issuers located in the State of California, or other publicly
available documents. Although the Sponsor has not
independently verified this information, it has no reason to
believe that such information is not correct in all material
respects.
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SUPPLEMENT TO PART B - TAX STATUS
California Trust
On the Date of Deposit, special California counsel
for the Sponsor rendered an opinion under the then existing
California state income tax law which read as follows:
The Insured Trust is not an association taxable as a
corporation under the income tax laws of the State of
California;
The income, deductions and credits against tax of the
Insured Trust will be treated as the income, deductions
and credits against tax of the holders of Units in the
Insured Trust under the income tax laws of the State of
California;
Interest on the bonds held by the Insured Trust to
the extent that such interest is exempt from taxation
under California law will not lose its character as tax-
exempt income merely because that income is passed through
to the holders of Units; however, a corporation subject to
the California franchise tax is required to include that
interest income in its gross income for purposes of
determining its franchise tax liability;
Each holder of a Unit in the Insured Trust will have
a taxable event when the Insured Trust disposes of a bond
(whether by sale, exchange, redemption, or payment at
maturity) or when the Unit holder redeems or sells his
Units. The total tax cost of each Unit to a holder of a
Unit in the Insured Trust is allocated among each of the
bond issues held in the Insured Trust (in accordance with
the proportion of the Insured Trust comprised by each bond
issue) in order to determine the holder's per Unit tax
cost for each bond issue, and the tax cost reduction
requirements relating to amortization of bond premium will
apply separately to the per Unit tax cost of each bond
issue. Therefore, under some circumstances, a holder of a
Unit may realize taxable gain when the Insured Trust
disposes of a bond or the holder's Units are sold or
redeemed for an amount equal to or less than his original
cost of the bond or Unit;
Each holder of a Unit in the Insured Trust is deemed
to be the owner of a pro rata portion of the Insured Trust
under the personal property tax laws of the State of
California;
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Each Unit holder's pro rata ownership of the bonds
held by the Insured Trust, as well as the interest income
therefrom, is exempt from California personal property
taxes; and
Amounts paid in lieu of interest on defaulted bonds
held by the Trustee under policies of insurance issued
with respect to such bonds will be excludable from gross
income for California income tax purposes if, and to the
same extent as, those amounts would have been so
excludable if paid as interest by the respective issuer.
In the opinion of Messrs. Kopesky & Welke, LLP,
special California counsel to the Sponsor, no change in law has
occurred since the Date of Deposit which would require a change
in the above opinion.
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THE DELAWARE UNINSURED TRUST
The Portfolio of the Delaware Uninsured Trust
consists of eight issues of Securities, seven of which were
issued by Issuers located in Delaware and one of which
(approximately 3.75% of the aggregate market value of the
Delaware Uninsured Trust Portfolio) was issued by authority of
the Commonwealth of Puerto Rico. Four issues of Securities are
each a general obligation of an Issuer. Four issues of
Securities, while not backed by the taxing power of the Issuer,
are payable from revenues or receipts derived from specific
projects or other available sources. The Delaware Uninsured
Trust contains the following categories of Securities:
Percentage of Aggregate
Market Value of Trust Portfolio
Category of Security (as of April 1, 1997)
General Obligation.............. 50.76%
Higher Education................ 14.35%
Highway and Transportation...... 34.89%
Original Issue Discount......... 50.48%
See: "The Trust -- Summary Description of the
Portfolios", in Part B, for a summary of the investment risks
associated with the type of Securities contained in the
Delaware Uninsured Trust. See: "Tax Status", in Part B, for a
discussion of certain tax considerations with regard to
Original Issue Discount.
Of the Original Issue Discount bonds in the Delaware
Uninsured Trust, approximately 5.59% of the aggregate principal
amount of the Securities in the Delaware Uninsured Trust (or
3.75% of the market value of all Securities in the Delaware
Uninsured Trust on April 1, 1997) are zero coupon bonds
(including bonds known as multiplier bonds, money multiplier
bonds, capital accumulator bonds, compound interest bonds and
discount maturity payment bonds).
On April 1, 1997, based on the bid side of the
market, the aggregate market value of the Securities in the
Delaware Uninsured Trust was $3,546,881.50.
On April 1, 1997, Standard & Poor's Corporation rated
seven of the Securities in the Delaware Uninsured Trust as
follows: 25.98%-AAA and 60.39%-AA; and Moody's Investors
Service rated one of the Securities as follows: 13.63%-A.
(See: the respective "Schedule of Portfolio Securities",
herein, and "Bond Ratings", in Part B.) A Security in the
Portfolio may subsequently cease to be rated or the rating
A-22
assigned may be reduced below the minimum requirements of the
Delaware Uninsured Trust for the acquisition of Securities.
While such events may be considered by the Sponsor in
determining whether to direct the Trustee to dispose of the
Security (see: "Sponsor -- Responsibility", in Part B), such
events do not automatically require the elimination of such
Security from the Portfolio.
SPECIAL CONSIDERATIONS REGARDING
DELAWARE SECURITIES - April 7, 1997
The Sponsor believes the information summarized below
describes some of the more significant developments relating to
the general economic conditions of the State of Delaware and in
particular to the state government itself. This information
may be relevant to the Securities (i) of or supported by the
State of Delaware or (ii) of municipalities or other political
subdivisions or instrumentalities of the State of Delaware that
rely, in whole or in part, on ad valorem real property taxes
and other general or special funds of such municipalities or
political subdivisions. The sources of such information
include publicly available documents, including the Official
Statements of the state. The Sponsor has not independently
verified any of the information contained in such Official
Statements and other publicly available documents, and is not
aware of any facts that would render such information
inaccurate.
Economic Base
The growth experienced in most sectors of Delaware's
economy for the past ten years has been considerably greater
than the average growth rates in the other forty-nine states.
Population grew by 22% in Delaware, compared with the national
growth of 17% and 5% in the other states in the region
(Maryland, New Jersey, New York, Pennsylvania). Delaware's
1996 population exceeded the 1995 head count by 1.1%, the
growth rate for the U.S. was 0.9%, and the growth in the
mideast region was 0.2%. Similarly, Delaware's employment
growth from 1986 through 1996 of 25% exceeded the 20% and 5%
growth rates of the nation and the region, respectively.
During the same period, unemployment rates declined
from a level higher than the national average, to one lower
than the U.S. as a whole. Delaware's February 1997
unemployment rate of 4.7% was lower than the national rate of
5.3%. The average of the other states in the mideast region
was 5.6%. For 1996, Delaware's unemployment rate averaged
5.2%, lower than the 5.4% rate for the U.S. and the 5.9%
regional average rate for the same year.
A-23
Personal income in the State advanced 90% from 1985
through 1995, compared with 80% for the nation and 78% in the
region. The 1995 poverty rate in the state was 10.3%,
considerably lower than the national rate of 13.8%. In July
1995 State Policy Reports ranked states by gross state product
per capita. Delaware ranked second of all the states, with
Alaska as the only state that exceeded Delaware. Delaware
exceeded the average state in the value of per capita
production by 46%.
These indicators of above average economic
performance resulted in part from financial decisions made by
the state in the late 1970's and early 1980's. They include
(1) reducing the top marginal personal income tax rate from
19.8% to 7.7% and a further reduction effective January 1997
that lowered the top rate to 6.9%, (2) broadening the
employment base to reduce the influence of the manufacturing
sector on Delaware's economy (from 25% of all jobs in 1986 to
16% in 1996), (3) reducing regulations on business - especially
banking through the Financial Center Development Act of 1981,
and (4) following fiscally conservative taxing policies. In
1993, further deregulatory legislation was enacted, which
increased competitive options for telecommunications providers
and expanded the powers of limited liability partnerships in
Delaware.
The state did feel the impact of the national
recession of 1990-91. Employment peaked at 355,900 in June
1990, reached its low point in February 1992, and had recovered
by 43,900 jobs to a level of 375,600 positions in February
1997. Compared with one year earlier, Delaware's employment in
February 1997 had increased by 11,600 (3.2%) while the nation's
employment grew by 2.4% and the other states in the region saw
an increase of 0.8%.
Delaware's manufacturing employment continues to be
negatively impacted by the downsizing and restructuring of the
chemical industry. In February 1997 there were 23,000 chemical
workers in Delaware, 10,600 fewer than in the peak year of
1990. When comparing February 1997 with February one year
earlier, Delaware's loss of chemical employment was nearly 2%,
the same as the region, compared to a 1% loss in the nation.
The General Motors assembly plant in Northern Delaware will
serve as an overflow facility starting in the spring of 1997,
when it will produce the Chevrolet Malibu line for two years.
Their current employment is 2,900, with average wages of $19
per hour. GM will then use the plant to build the Saturn
Innovate. They expect to assemble 250,000 cars annually and
maintain their current employment level.
A-24
Chrysler, the owner of the only other auto assembly
plant in the state also employs 2,900 workers. Chrysler is
currently undergoing a $500 million retooling of its facility.
In the fall of 1997 that plant will begin producing sport
utility vehicles. February 1997 manufacturing employment in
Delaware declined by 4% compared with one year ago. The U.S.
lost 1% of its manufacturing jobs over the same period and the
other states in the region lost nearly 2%.
The state's per capita personal income of $26,273 in
1995 was 13% higher than the national average, ranking Delaware
sixth in the U.S. For 1995, Delaware's total personal income
advanced by 6.0%, relative to one year earlier, compared with
5.8% in the U.S. and 4.5% in the region.
In the past ten years (1986-96) there has been a 52%
growth in net new business firms established in Delaware,
compared with 22% in the U.S. and 14% in the region. In 1996
there were 22,000 firms operating in the state, a growth rate
for the year that was the fifth highest in the nation, and two
and one half times that of the U.S. and five times that of the
region. The business failure numbers also paint Delaware as an
attractive place to own a successful company. In 1995, only 45
Delaware businesses ceased to operate, the lowest number of
failures since 1989. In 1995, only 22 businesses failed in
Delaware for each 10,000 firms in existence, compared with
failure rates of 86 and 90 per 10,000 firms for the region and
the U.S., respectively.
Franchise tax revenue and fees derived from companies
incorporated in Delaware represent the second largest source
(20%) of State General Fund revenue (the largest contributor is
the personal income tax). There were 51,300 new incorporations
in Delaware in 1996, bringing the number of domestic
corporations using the state as their legal home to more than
300,000. New incorporations in Delaware increased by 7% in
1996, compared with 1995. Although the state is the legal home
of only 5% of the corporations in the U.S., among those are
half the companies listed on the New York Stock Exchange.
Delaware was also the corporate home of 58% of the companies
listed in the "Fortune 500" in 1995.
The value of Delaware's construction contracts (as
measured by McGraw-Hill) decreased 6% in 1996 compared with
1995. This decrease compares with the U.S. increase of 3%.
Delaware's strengths were in the nonresidential building
(office space), nonbuilding (highway) and government building
categories. Construction employment in February 1997 was 13%
higher than one year earlier, compared with 6% growth in the
U.S., and a 3% increase in the region.
A-25
Delaware's new private housing authorizations
decreased by 5% in 1996, compared with 1995. U.S. and the
region's private housing authorizations were 8% and 10% higher,
respectively, for the same period. There were 1% more Delaware
home sales in 1996 than in 1995, compared with an 8% increase
for the whole country, and a 2% decline for the region. The
nominal dollar value of Delaware's housing starts was 6% higher
in 1996 than the previous year compared with increases of 8% in
the region and 11% nationally.
Newly leased office space in the greater Wilmington
market increased by 40% in 1996 compared with the prior year,
and was 30% higher than the average of the last five years.
The vacancy rate for Wilmington's Class "A" buildings was 15%
compared with the national average of 14% in December 1996. At
the same time, the quoted rental price for this downtown office
space was $20 per square foot, compared to $25 in the average
central business district nationally. Operating costs on these
properties averaged $7 per square foot at the end of 1996.
These costs were approximately the same as those nationwide,
but considerably less than in neighboring cities. MBNA, one of
the largest banks in the state, has recently completed
construction of two office buildings totalling 615,000 square
feet and an adjoining parking garage adjacent to the central
square in the City of Wilmington.
The financial services industry continued to expand
in Delaware, employing 44,900 workers in February 1997. Those
workers in financial services held 2,700 more jobs than one
year earlier, a year-over-year growth rate of 6%, in spite of
the ongoing bank consolidations. The number of national
finance-related jobs grew by 3% and the number in the region
remained unchanged. In 1995, Delaware banks had the third
highest return on average assets in the nation, 2.39% compared
with the U.S. average of 1.16%. Financial institutions
currently number fifty-seven, including half of the ten largest
credit card companies in the country. In June 1995, the state
approved limited expansion powers for out-of-state banks that
want to establish operations in Delaware.
The Port of Wilmington handled 4.6 million tons of
waterborne cargo in 1996, an increase of 21% compared with the
prior year. For fiscal 1996, gross port revenue of $18.1
million was 4% lower than the revenue in fiscal 1995. The
composition of the imports has changed since last year, with
increases in wet bulk imports and reductions in steel, dry bulk
and refrigerated cargo. The wet bulk (primarily oil) cargo
pays a monthly fee for port usage, regardless of tonnage, while
payment for the other cargo is based on weight. Wilmington's
port exports more American-made cars and imports more bananas
than any other port in the U.S. New port contracts include
substantial import tonnage of Chilean fruit and Australian
A-26
beef. In 1996 the port of Wilmington led all the Delaware
River ports and terminals with 376 ship calls, according to the
Delaware River and Bay Maritime Exchange. In June 1995 the
state agreed to purchase the port for $40 million, payable over
30 years. The state also agreed to invest $25 million in
capital improvements in the port over the next two years and to
assume $66 million of port debt. The state assumed the full
operating responsibility for the port in September 1996.
State Finances
Fiscal 1996. General Fund expenditures were $1,651
million, an increase of 7% over the previous year, with the
growth primarily for mandated caseload and inflation
adjustments in social service programs. One significant
feature in the 1996 budget was an initiative to move welfare
recipients into the labor market. The fiscal 1996 revenue was
$1,656 million, an increase of 3%. After adjusting for the
phased-in personal income tax cut, the growth of General Fund
revenue was 6% over the prior year. The fiscal 1996 cumulative
cash balance was $379 million, 24% of the operating budget.
Nationally, cash balances as a percent of operating spending
averaged 6%, according to the National Association of State
Budget Officers. The State's Budget Reserve Fund (see "Fiscal
Controls" below) remained fully funded at the 5% level and held
balances of $87 million.
Delaware finances transportation projects primarily
through the Transportation Trust Fund, created in 1987 and
funded by dedicated revenue sources including the motor fuel
tax, turnpike tolls and concessions, motor vehicle document and
registration fees, miscellaneous transportation related revenue
(titling fees, operator license fees, etc.), and investment
earnings on Trust Fund balances. Transportation operating
expenses and debt service were $162 million for fiscal 1996, a
1% increase over the previous year. The capital program spent
another $124 million. The state enacted increases in motor
vehicle gasoline and diesel taxes, vehicle document fees, and
tolls on Interstate 95 to replace some of the anticipated bond-
financed capital spending. These "user fees" for
transportation purposes are expected to provide $178 million of
capital for transportation projects through 1999, and became
effective September 1993.
In 1993, the U.S. Supreme Court ruled in favor of
Delaware in a case involving intangible abandoned property,
stating that Delaware is entitled to receive abandoned property
held by brokers incorporated in the state. In 1994, Delaware
negotiated a settlement with New York which allows Delaware to
draw down the $220 million windfall during the next four years.
The fiscal 1996 budget authorized the use of these funds (named
A-27
the Twenty-first Century Fund) to create public/private
partnerships to enhance the competitiveness of the state.
Specifically allocated in fiscal 1996 were $35 million for
agricultural land preservation and a parks' maintenance
endowment, $42 million for educational technology investments
and economic development projects and $33 million for housing,
community development, and sewer/water projects.
Fiscal 1997. The Delaware Economic and Financial
Advisory Council ("DEFAC"), composed of 33 private and public-
sector members appointed by the Governor, provides revenue and
expenditure forecasts for the General Assembly and the Governor
a minimum of six times each year. The most recent DEFAC
forecast (March 1997) called for General Fund revenue of $1,742
million for fiscal 1997, a growth of 5% over the fiscal 1996
revenue. (Adjusted for the decrease in personal income tax
rates, the growth estimate was 6%.) Fiscal 1997 expenditures
are expected to be $1,781, an increase of 8% compared with
fiscal 1996. Operating expenditures and debt service from the
Transportation Trust Fund are expected to be $164 million,
approximately the same as the previous year. The capital
spending budgets include $119 million for transportation
projects and $159 million for other capital improvements
supported by the General Fund and the Twenty-first Century
Fund.
Fiscal 1998. The March 1997 DEFAC estimate for
revenue in the General Fund was $1,780 million (+5%) and $244
million in the Transportation Trust Fund, a nearly 3% increase
over the previous year.
Fiscal Controls A constitutional limit requires a
three-fifths vote of each house of the General Assembly to pass
or increase any tax or license fee. Appropriation of more than
98% of estimated General Fund revenue plus unencumbered General
Fund balances from the previous fiscal year also requires a
three-fifths vote of both houses.
Excess unencumbered General Fund revenue at the end
of a fiscal year must be placed in a Budget Reserve Account,
until that account accumulates to 5% of estimated General Fund
revenue, according to the state constitution. That account
provides a cushion against unanticipated revenue shortfalls and
funds for tax reductions. The Budget Reserve Account currently
holds $87 million and is fully funded.
Until 1991 the authorization of additional General
Fund debt was restricted to 75% of the principal retirement of
general obligation debt in the prior fiscal year plus any
A-28
deauthorized debt in the same year. Legislation effective in
July 1991 replaced that debt limitation. The revised
limitations are three: (a) annual tax supported debt
authorizations cannot exceed 5% of estimated General fund
revenue, (b) debt service payments of all tax supported debt
(including the Transportation Authority, certificates of
participation and long-term leases) will be limited to 15% of
General Fund plus Transportation Trust Fund revenue, and (c)
General Obligation debt service payments will be limited to the
projected cumulative cash balance for the same fiscal year.
These debt limits supported the reduction of per capita General
Obligation debt from $762 in fiscal 1987 to an estimated $652
in fiscal 1997.
A-29
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
THE UNIT HOLDERS, SPONSOR AND TRUSTEE
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA INTERMEDIATE TERM PORTFOLIO SERIES 12
DELAWARE PORTFOLIO SERIES 14
We have audited the statements of financial condition and schedules of
portfolio securities of the Dean Witter Select Municipal Trust Insured
California Intermediate Term Portfolio Series 12 and Delaware Portfolio
Series 14 as of February 28, 1997, and the related statements of operations
and changes in net assets for the years ended February 28, 1997 and
February 29, 1996 and the period from March 30, 1994 (date of deposit) to
February 28, 1995. These financial statements are the responsibility of the
Trustee (see Footnote (a)(1)). Our responsibility is to express an opinion
on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of the securities owned as of
February 28, 1997 as shown in the statements of financial condition and
schedules of portfolio securities by correspondence with The Bank of New
York, the Trustee. An audit also includes assessing the accounting
principles used and the significant estimates made by the Trustee, as well
as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Dean Witter Select
Municipal Trust Insured California Intermediate Term Portfolio Series 12 and
Delaware Portfolio Series 14 as of February 28, 1997, and the results of
their operations and the changes in their net assets for the years ended
February 28, 1997 and February 29, 1996 and the period from March 30, 1994
(date of deposit) to February 28, 1995 in conformity with generally accepted
accounting principles.
DELOITTE & TOUCHE LLP
April 4, 1997
New York, New York
F-1
</AUDIT-REPORT>
<PAGE>
STATEMENT OF FINANCIAL CONDITION
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA INTERMEDIATE TERM PORTFOLIO SERIES 12
February 28, 1997
TRUST PROPERTY
Investments in municipal bonds at market value
(amortized cost $4,471,006) (Note (a) and Schedule of
Portfolio Securities Notes (4) and (5)) $4,593,815
Accrued interest receivable 79,448
Total 4,673,263
LIABILITIES AND NET ASSETS
Less Liabilities:
Cash overdraft 58,261
Accrued Trustee's fees and expenses 4,525
Accrued Sponsor's fees 1,493
Total liabilities 64,279
Net Assets:
Balance applicable to 4,525,796 Units of fractional
undivided interest outstanding (Note (c)):
Capital, plus unrealized market
appreciation of $122,809 $4,593,815
Undistributed principal and net investment
income (Note (b)) 15,169
Net assets $4,608,984
Net asset value per Unit ($4,608,984 divided by 4,525,796 Units
multiplied by 1,000) $ 1,018.38
See notes to financial statements
F-2
<PAGE>
STATEMENTS OF OPERATIONS
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA INTERMEDIATE TERM PORTFOLIO SERIES 12
For the period from
For the years ended March 30, 1994
February 28, February 29, (date of deposit)
1997 1996 to February 28, 1995
Investment income -
interest $227,710 $242,579 $223,888
Less Expenses:
Trustee's fees and
expenses 10,484 10,971 9,850
Sponsor's fees 1,165 1,241 1,250
Total expenses 11,649 12,212 11,100
Investment
income - net 216,061 230,367 212,788
Net (loss) gain on
investments:
Realized gain on securi-
ties sold or redeemed 1,646 3,936 -
Unrealized market
(depreciation) appre-
ciation (22,799) 262,843 (117,235)
Net (loss) gain
on investments (21,153) 266,779 (117,235)
Net increase in net assets
resulting from operations $194,908 $497,146 $ 95,553
See notes to financial statements
F-3
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA INTERMEDIATE TERM PORTFOLIO SERIES 12
For the period from
For the years ended March 30, 1994
February 28, February 29, (date of deposit)
1997 1996 to February 28, 1995
Operations:
Investment income -
net $ 216,061 $ 230,367 $ 212,788
Realized gain on securi-
ties sold or redeemed 1,646 3,936 -
Unrealized market appre-
ciation (deprecia-
tion) (22,799) 262,843 (117,235)
Net increase
in net assets
resulting
from opera-
tions 194,908 497,146 95,553
Less Distributions to
Unit Holders:
Investment income -
net (212,168) (226,391) (190,818)
Total distribu-
tions (212,168) (226,391) (190,818)
Less Capital Share Trans-
actions:
Redemption of 190,529
Units and 283,675
Units, respectively (192,454) (289,048) -
Accrued interest on
redemption (654) (1,132) -
Total capital
share trans-
actions (193,108) (290,180) -
Net decrease in net assets (210,368) (19,425) (95,265)
Net assets:
Beginning of period
(Note c) 4,819,352 4,838,777 4,934,042
End of period (includ-
ing undistributed
principal and net
investment income of
$15,169 and $16,479,
and undistributed net
investment income of
$18,736, respec-
tively) $4,608,984 $4,819,352 $4,838,777
See notes to financial statements
F-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA INTERMEDIATE TERM PORTFOLIO SERIES 12
February 28, 1997
(a) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Trust is registered under the Investment Company Act of 1940 as
a Unit Investment Trust. The following is a summary of the
significant accounting policies of the Trust:
(1) Basis of Presentation
The Trustee has custody of and responsibility for all
accounting and financial books, records, financial statements
and related data of the Trust and is responsible for
establishing and maintaining a system of internal controls
directly related to, and designed to provide reasonable
assurance as to the integrity and reliability of, financial
reporting of the Trust. The Trustee is also responsible for
all estimates and accruals reflected in the Trust's financial
statements. The Evaluator determines the price for each
underlying Security included in the Trust's Portfolio of
Securities on the basis set forth in Part B of this
Prospectus, "Public Offering of Units - Public Offering
Price". Under the Securities Act of 1933 ("the Act"), as
amended, the Sponsor is deemed to be an issuer of the Trust
Units. As such, the Sponsor has the responsibility of an
issuer under the Act with respect to financial statements of
the Trust included in the Trust's Registration Statement under
the Act and amendments thereto.
(2) Investments
Investments are stated at market value as determined by the
Evaluator based on the bid side evaluations on the last day of
trading during the period, except that value on the date of
deposit (March 30, 1994) represents the cost of investments to
the Trust based on the offering side evaluations as of the
date of deposit.
(3) Income Taxes
The Trust is not an association taxable as a corporation for
Federal income tax purposes; accordingly, no provision is
required for such taxes.
(4) Expenses
The Trust pays an annual Trustee's fee, including estimated
expenses and Evaluator's fees, and an annual Sponsor's
portfolio supervision fee, and may incur additional charges as
explained under "Expenses and Charges - Fees" and "- Other
Charges" in Part B of this Prospectus.
(b) DISTRIBUTIONS
Interest received by the Trust is distributed to the Unit Holders on
or shortly after the fifteenth day of each month after deducting
applicable expenses. Receipts other than interest are distributed
as explained in "Administration of the Trusts - Distribution of
Interest and Principal" in Part B of this Prospectus.
F-5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA INTERMEDIATE TERM PORTFOLIO SERIES 12
February 28, 1997
(c) ORIGINAL COST TO INVESTORS
The original cost to investors represents the aggregate initial
public offering price as of the date of deposit (March 30, 1994)
exclusive of accrued interest, computed on the basis set forth
under "Public Offering of Units - Public Offering Price" in Part B
of this Prospectus.
A reconciliation of the original cost of Units to investors to the
net amount applicable to investors as of February 28, 1997 follows:
Original cost to investors $5,086,650
Less: Gross underwriting commissions (sales charge) (152,608)
Net cost to investors 4,934,042
Cost of securities sold or redeemed (473,259)
Unrealized market appreciation 122,809
Accumulated interest accretion 10,223
Net amount applicable to investors $4,593,815
(d) OTHER INFORMATION
Selected data for 1,000 Units of the Trust during each period:
For the period from
March 30,1994 (date of deposit)
For the years ended February 28, February 29, to February 28, 1995
1997 1996
Net investment
income distribu-
tions during
period $ 45.60 $ 45.72 $ 38.16
Net asset value at
end of period $1,018.38 $1,021.84 $967.76
Trust Units out-
standing at end
of period 4,525,796 4,716,325 5,000,000
F-6
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF PORTFOLIO SECURITIES
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA INTERMEDIATE TERM PORTFOLIO SERIES 12
February 28, 1997
Port- Optional
folio Rating Face Coupon Maturity Sinking Fund Refunding Market
No. Title of Securities <F3> Amount Rate Date Redemptions<F5> Redemptions<F4> Value<F6><F7>
<S><C> <C> <C> <C> <C> <C> <C> <C>
1. State of California Gene-
ral Obligation Bonds (FGIC
Insured) <F10> AAA $ 895,000 4.700% 03/01/99 NONE NONE $ 908,873
2. California Statewide Com-
munities Development Author-
ity Insured Health Facili-
ties Revenue Certificates of
Participation (Unihealth
America) 1993 Series A
(AMBAC Insured) <F8> AAA 890,000 4.800 10/01/00 NONE NONE 909,687
3. Glendale Unified District
Certificates of Participa-
tion 1994 Series A (AMBAC
Insured) <F8> AAA 450,000 5.000 03/01/01 NONE NONE 460,152
4. California Statewide Com-
munities Development Author-
ity Certificates of Partici-
pation - The Salk Institute
for Biological Studies
(Connie Lee Insured) <F12> AAA 440,000 5.200 07/01/01 NONE NONE 452,346
5. Glendale Unified School
District Certificates of
Participation 1994 Series A
(AMBAC Insured) <F8> AAA 445,000 5.100 03/01/02 NONE NONE 457,215
6. California Statewide Com-
munities Development Author-
ity Certificates of Partici-
pation - The Salk Institute
for Biological Studies
(Connie Lee Insured) <F12> AAA 460,000 5.300 07/01/02 NONE NONE 475,507
7. California State Public
Works Board Lease Revenue
Bonds (Department of Correc-
tions), 1993 Series D (FSA
Insured) <F11> AAA 845,000 4.800 06/01/03 NONE NONE 855,875
8. San Mateo County Certifi-
cates of Participation (Cap-
ital Projects Program)
Series of 1991 (MBIA
Insured) (Escrowed to
Maturity) <9> AAA 100,000 0.000 07/01/03 NONE NONE 74,160
$4,525,000 $4,593,815
See notes to schedule of portfolio securities
F-7
</TABLE>
<PAGE>
NOTES TO SCHEDULE OF PORTFOLIO SECURITIES
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA INTERMEDIATE TERM PORTFOLIO SERIES 12
February 28, 1997
[FN]
<F3> All ratings are provided by Standard & Poor's Corporation. A brief
description of applicable Security ratings is given under "Bond
Ratings" in Part B of this Prospectus.
<F4> There is shown under this heading the date on which each issue of
Securities is redeemable by the operation of optional call
provisions and the redemption price for that date; unless otherwise
indicated, each issue continues to be redeemable at declining
prices thereafter but not below par. Securities listed as non-
callable, as well as Securities listed as callable, may also be
redeemable at par under certain circumstances from special
redemption payments.
<F5> There is shown under this heading the date on which an issue of
Securities is subject to scheduled sinking fund redemption and the
redemption price on such date.
<F6> The market value of the Securities as of February 28, 1997 was
determined by the Evaluator on the basis of bid side evaluations
for the Securities at such date.
<F7> At February 28, 1997, the unrealized market appreciation of all
Securities was comprised of the following:
Gross unrealized market appreciation $122,809
Gross unrealized market depreciation -
Unrealized market appreciation $122,809
The amortized cost of the Securities for Federal income tax purposes
was $4,471,006 at February 28, 1997.
<F8> Insured by American Municipal Bond Assurance Corporation ("AMBAC").
<F9> Insured by Municipal Bond Insurance Association ("MBIA").
<F10> Insured by Financial Guaranty Insurance Company ("FGIC").
<F11> Insured by Financial Security Assurance ("FSA").
<F12> Insured by Connie Lee Insurance Co. ("Connie Lee").
F-8
<PAGE>
STATEMENT OF FINANCIAL CONDITION
DEAN WITTER SELECT MUNICIPAL TRUST
DELAWARE PORTFOLIO SERIES 14
February 28, 1997
TRUST PROPERTY
Investments in municipal bonds at market value
(amortized cost $3,495,252) (Note (a) and Schedule of
Portfolio Securities Notes (4) and (5)) $3,604,999
Accrued interest receivable 58,917
Total 3,663,916
LIABILITIES AND NET ASSETS
Less Liabilities:
Cash overdraft 42,293
Accrued Trustee's fees and expenses 2,888
Accrued Sponsor's fees 1,152
Total liabilities 46,333
Net Assets:
Balance applicable to 3,574 Units of fractional
undivided interest outstanding (Note (c)):
Capital, plus unrealized market
appreciation of $109,747 $3,604,999
Undistributed principal and net investment
income (Note (b)) 12,584
Net assets $3,617,583
Net asset value per Unit ($3,617,583 divided by 3,574 Units) $ 1,012.19
See notes to financial statements
F-9
<PAGE>
STATEMENTS OF OPERATIONS
DEAN WITTER SELECT MUNICIPAL TRUST
DELAWARE PORTFOLIO SERIES 14
For the period from
For the years ended March 30, 1994
February 28, February 29, (date of deposit)
1997 1996 to February 28, 1995
Investment income -
interest $186,083 $191,776 $176,520
Less Expenses:
Trustee's fees and
expenses 8,078 8,233 8,232
Sponsor's fees 902 931 931
Total expenses 8,980 9,164 9,163
Investment income
- net 177,103 182,612 167,357
Net (loss) gain on
investments:
Realized loss on securi-
ties sold or redeemed (401) - -
Unrealized market
(depreciation)
appreciation (39,228) 208,912 (59,937)
Net (loss) gain
on investments (39,629) 208,912 (59,937)
Net increase in net assets
resulting from operations $137,474 $391,524 $107,420
See notes to financial statements
F-10
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
DEAN WITTER SELECT MUNICIPAL TRUST
DELAWARE PORTFOLIO SERIES 14
For the period from
For the years ended March 30, 1994
February 28, February 29, (date of deposit)
1997 1996 to February 28, 1995
Operations:
Investment income -
net $ 177,103 $ 182,612 $ 167,357
Realized loss on
securities sold or
redeemed (401) - -
Unrealized market
(depreciation)
appreciation (39,228) 208,912 (59,937)
Net increase
in net assets
resulting
from opera-
tions 137,474 391,524 107,420
Less Distributions to
Unit Holders:
Investment income -
net (170,518) (176,118) (147,771)
Total distribu-
tions (170,518) (176,118) (147,771)
Less Capital Share Trans-
actions:
Redemption of 145
Units and 6 Units,
respectively (144,828) (6,185) -
Accrued interest on
redemption (413) (11) -
Total capital
share trans-
actions (145,241) (6,196) -
Net (decrease) increase in
net assets (178,285) 209,210 (40,351)
Net assets:
Beginning of period
(Note c) 3,795,868 3,586,658 3,627,009
End of period (includ-
ing undistributed
principal and net
investment income of
$12,584, $8,029 and
$13,807, respec-
tively) $3,617,583 $3,795,868 $3,586,658
See notes to financial statements
F-11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DEAN WITTER SELECT MUNICIPAL TRUST
DELAWARE PORTFOLIO SERIES 14
February 28, 1997
(a) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Trust is registered under the Investment Company Act of 1940 as a
Unit Investment Trust. The following is a summary of the significant
accounting policies of the Trust:
(1) Basis of Presentation
The Trustee has custody of and responsibility for all accounting and
financial books, records, financial statements and related data of
the Trust and is responsible for establishing and maintaining a
system of internal controls directly related to, and designed to
provide reasonable assurance as to the integrity and reliability
of, financial reporting of the Trust. The Trustee is also
responsible for all estimates and accruals reflected in the Trust's
financial statements. The Evaluator determines the price for each
underlying Security included in the Trust's Portfolio of Securities
on the basis set forth in Part B of this Prospectus, "Public
Offering of Units - Public Offering Price". Under the Securities
Act of 1933 ("the Act"), as amended, the Sponsor is deemed to be an
issuer of the Trust Units. As such, the Sponsor has the
responsibility of an issuer under the Act with respect to financial
statements of the Trust included in the Trust's Registration
Statement under the Act and amendments thereto.
(2) Investments
Investments are stated at market value as determined by the
Evaluator based on the bid side evaluations on the last day of
trading during the period, except that value on the date of deposit
(March 30, 1994) represents the cost of investments to the Trust
based on the offering side evaluations as of the
date of deposit.
(3) Income Taxes
The Trust is not an association taxable as a corporation for Federal
income tax purposes; accordingly, no provision is required for such
taxes.
(4) Expenses
The Trust pays an annual Trustee's fee, including estimated expenses
and Evaluator's fees, and an annual Sponsor's portfolio supervision
fee and may incur additional charges as explained under "Expenses
and Charges - Fees" and "- Other Charges" in Part B of this
Prospectus.
(b) DISTRIBUTIONS
Interest received by the Trust is distributed to the Unit Holders on or
shortly after the fifteenth day of each month after deducting applicable
expenses. Receipts other than interest are distributed as explained in
"Administration of the Trusts - Distribution of Interest and Principal"
in Part B of this Prospectus.
F-12
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DEAN WITTER SELECT MUNICIPAL TRUST
DELAWARE PORTFOLIO SERIES 14
February 28, 1997
(c) ORIGINAL COST TO INVESTORS
The original cost to investors represents the aggregate initial public
offering price as of the date of deposit (March 30, 1994) exclusive of
accrued interest, computed on the basis set forth under "Public Offering
of Units - Public Offering Price" in Part B of this Prospectus.
A reconciliation of the original cost of Units to investors to the net
amount applicable to investors as of February 28, 1997 follows:
Original cost to investors $3,774,170
Less: Gross underwriting commissions (sales charge) (147,161)
Net cost to investors 3,627,009
Cost of securities sold or redeemed (150,001)
Unrealized market appreciation 109,747
Accumulated interest accretion 18,244
Net amount applicable to investors $3,604,999
(d) OTHER INFORMATION
Selected data for a Unit of the Trust during each period:
For the period from
For the years ended March 30, 1994
February 28, February 29, (date of deposit)
1997 1996 to February 28, 1995
Net investment
income distribu-
tions during
period $ 47.23 $ 47.28 $ 39.67
Net asset value at
end of period $1,012.19 $1,020.67 $962.86
Trust Units out-
standing at end
of period 3,574 3,719 3,725
F-13
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF PORTFOLIO SECURITIES
DEAN WITTER SELECT MUNICIPAL TRUST
DELAWARE PORTFOLIO SERIES 14
February 28, 1997
Port- Optional
folio Rating Face Coupon Maturity Sinking Fund Refunding Market
No. Title of Securities <F15> Amount Rate Date Redemptions<F17> Redemptions<F16>Value<F18><F19>
<S><C> <C> <C> <C> <C> <C> <C> <C>
1. State of Delaware Obliga-
tion Bonds AA+ $ 525,000 5.000% 03/01/07 NONE 03/01/04@102 $ 528,785
2. Delaware River and Bay
Authority Revenue Bond,
Series 1993 A1<F20> 500,000 4.500 01/01/04 NONE NONE 492,740
3. Delaware Transportation
Authority Transportation
System Junior Revenue Bonds,
1993 Series (MBIA Insured)
<F21> AAA 250,000 5.000 07/01/03 NONE NONE 255,570
4. Delaware Transportation
Authority Transportation
System Senior Revenue Bonds,
1993 Series AA 500,000 5.100 07/01/04 NONE NONE 511,955
5. New Castle County General
Obligation Bonds Series 1993 AA 600,000 5.500 10/01/07 NONE 10/01/03@102 619,446
6. University of Delaware
Revenue Bonds, Series 1993 AA+ 500,000 5.300 11/01/06 NONE 11/01/[email protected] 516,100
7. Wilmington General Obliga-
tion Bonds, Series 1992 B
(FGIC Insured) <F22> AAA 500,000 6.300 04/01/04 NONE 04/01/02@102 544,435
8. Commonwealth of Puerto
Rico Improvement Bonds of
1990 (FGIC Insured) <F22> AAA 200,000 0.000 07/01/05 NONE NONE 135,968
$3,575,000 $3,604,999
See notes to schedule of portfolio securities
F-14
</TABLE>
<PAGE>
NOTES TO SCHEDULE OF PORTFOLIO SECURITIES
DEAN WITTER SELECT MUNICIPAL TRUST
DELAWARE PORTFOLIO SERIES 14
February 28, 1997
[FN]
<F15> All ratings are provided by Standard & Poor's Corporation, unless
otherwise indicated. A brief description of applicable Security
ratings is given under "Bond Ratings" in Part B of this Prospectus.
<F16> There is shown under this heading the date on which each issue of
Securities is redeemable by the operation of optional call
provisions and the redemption price for that date; unless otherwise
indicated, each issue continues to be redeemable at declining
prices thereafter but not below par. Securities listed as non-
callable, as well as Securities listed as callable, may also be
redeemable at par under certain circumstances from special
redemption payments.
<F17> There is shown under this heading the date on which an issue of
Securities is subject to scheduled sinking fund redemption and the
redemption price on such date.
<F18> The market value of the Securities as of February 28, 1997 was
determined by the Evaluator on the basis of bid side evaluations
for the Securities at such date.
<F19> At February 28, 1997, the unrealized market appreciation of all
Securities was comprised of the following:
Gross unrealized market appreciation $109,747
Gross unrealized market depreciation -
Unrealized market appreciation $109,747
The amortized cost of the Securities for Federal income tax purposes
was $3,495,252 at February 28, 1997.
<F20> Moody's Investors Service, Inc. rating.
<F21> Insured by Municipal Bond Insurance Association ("MBIA").
<F22> Insured by Financial Guaranty Insurance Company ("FGIC").
F-15
(MODULE)
(NAME) DWSMTPARTB941
(CIK) 0000840581
(CCC) uit*59fl
(/MODULE)
CONTENTS OF REGISTRATION STATEMENT
This registration statement comprises the following
documents:
The facing sheet.
The Cross Reference Sheet.
The Prospectus.
The signatures.
Consents of the Evaluator, Independent Auditors and
Standard & Poor's Ratings Group; all other consents
were previously filed.
The following exhibits:
23. 1a. Consents of Kenny S&P Evaluation Services,
a division of J.J. Kenny Co., Inc.
1b. Consent of Independent Auditors.
1d. Consent of Standard & Poor's Ratings
Group, a division of The McGraw-Hill
Companies, Inc.
27. 1. Financial Data Schedule of Dean Witter
Select Municipal Trust, Insured California
Intermediate Term Portfolio Series 12.
2. Financial Data Schedule of Dean Witter
Select Municipal Trust, Delaware Portfolio
Series 14.
CONSENT OF COUNSEL
The consents of counsel to the use of their names in
the Prospectus included in this Registration Statement are
contained in their opinions filed as Exhibits EX-5, EX-8 and
EX-8.1 to this Registration Statement.
SIGNATURES
Pursuant to the requirements of the Securities Act of
1933, each of the registrants, Dean Witter Select Municipal
Trust, Insured California Intermediate Term Portfolio Series 12
and Delaware Portfolio Series 14, certifies that it meets all
of the requirements for effectiveness of this Registration
Statement pursuant to Rule 485(b) under the Securities Act of
1933 and has duly caused this Post-Effective Amendment No. 3 to
the Registration Statement to be signed on their behalf by the
undersigned, thereunto duly authorized, all in The City of New
York and State of New York on the 17th day of April, 1997.
DEAN WITTER SELECT MUNICIPAL TRUST,
INSURED CALIFORNIA INTERMEDIATE TERM
PORTFOLIO SERIES 12
DELAWARE PORTFOLIO SERIES 14
(Registrants)
By: DEAN WITTER REYNOLDS INC.
(Depositor)
Thomas Hines
Thomas Hines
Authorized Signatory
Pursuant to the requirements of the Securities Act of
1933, this Post-Effective Amendment No. 3 to the Registration
Statement has been signed on behalf of Dean Witter Reynolds
Inc., the Depositor, by the following person in the following
capacities and by the following persons who constitute a
majority of the Depositor's Board of Directors in The City of
New York and State of New York on this 17th day of April, 1997.
Name Office
Philip J. Purcell Chairman & Chief )
Executive Officer )
and Director )
Richard M. DeMartini Director
Robert J. Dwyer Director
Christine A. Edwards Director
Charles A. Fiumefreddo Director
James F. Higgins Director
Mitchell M. Merin Director
Stephen R. Miller Director
Richard F. Powers III Director
Thomas C. Schneider Director
William B. Smith Director
By: Thomas Hines
Thomas Hines
Attorney-in-facta
a32 Executed copies of the Powers of Attorney of the Board
Members listed below have been filed with the Securities
and Exchange Commission in connection with Amendment No. 1
to the Registration Statement on Form S-6 for Dean Witter
Select Equity, Select 10 Industrial Portfolio 97-1, File
No. 333-16839, Amendment No. 1 to the Registration
Statement on Form S-6 for Dean Witter Select Equity Trust,
Select 10 Industrial Portfolio 96-4, File No. 333-10499
and the Registration Statement of Form S-6 for Dean Witter
Select Equity Trust, Select 10 International Series 95-1,
File No. 33-56389.
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
EXHIBIT INDEX
EXHIBIT NO. TITLE OF DOCUMENT
23. 1a. Consent of Kenny S&P Evaluation
Services, a division of J.J. Kenny
Co., Inc.
1b. Consent of Deloitte & Touche LLP
1d. Consent of Standard & Poor's
Ratings Group, a division of The
McGraw-Hill Companies, Inc.
27. 1. Financial Data Schedule Dean Witter
Select Municipal Trust, Insured
California Intermediate Term Portfolio
Series 12
2. Financial Data Schedule of Dean Witter
Select Municipal Trust, Delaware
Portfolio Series 14 Exhibit 23.1a.
Exhibit 23.1a.
Letterhead of KENNY S&P EVALUATION SERVICES,
A Division of J.J. KENNY CO., INC.
April 17, 1997
Dean Witter Reynolds Inc.
Two World Trade Center
New York, NY 10048
Re: Dean Witter Select Municipal Trust,
Insured California Intermediate Term
Portfolio Series 12
Gentlemen:
We have examined the post-effective Amendment to the
Registration Statement File No. 33-50275 for the
above-captioned trust. We hereby acknowledge that Kenny S&P
Evaluation Services, a division of J.J. Kenny Co., Inc. is
currently acting as the evaluator for the trust. We hereby
consent to the use in the Amendment of the reference to Kenny
S&P Evaluation Services, a division of J.J. Kenny Co., Inc. as
evaluator.
In addition, we hereby confirm that the ratings
indicated in the above-referenced Amendment to the Registration
Statement for the respective bonds comprising the trust
portfolio are the ratings currently indicated in our KENNYBASE
database.
You are hereby authorized to file a copy of this
letter with the Securities and Exchange Commission.
Sincerely,
89Frank A. Ciccotto
Vice President
Letterhead of KENNY S&P EVALUATION SERVICES,
A Division of J.J. KENNY CO., INC.
April 17, 1997
Dean Witter Reynolds Inc.
Two World Trade Center
New York, NY 10048
Re: Dean Witter Select Municipal Trust,
Delaware Portfolio Series 14
Gentlemen:
We have examined the post-effective Amendment to the
Registration Statement File No. 33-50977 for the
above-captioned trust. We hereby acknowledge that Kenny S&P
Evaluation Services, a division of J.J. Kenny Co., Inc. is
currently acting as the evaluator for the trust. We hereby
consent to the use in the Amendment of the reference to Kenny
S&P Evaluation Services, a division of J.J. Kenny Co., Inc. as
evaluator.
In addition, we hereby confirm that the ratings
indicated in the above-referenced Amendment to the Registration
Statement for the respective bonds comprising the trust
portfolio are the ratings currently indicated in our KENNYBASE
database.
You are hereby authorized to file a copy of this
letter with the Securities and Exchange Commission.
Sincerely,
Frank A. Ciccotto
Frank A. Ciccotto
Vice President
Exhibit 23.1b.
CONSENT OF INDEPENDENT AUDITORS
We consent to the use of our report dated April 4, 1997, accompanying the
financial statements of the Dean Witter Select Municipal Trust Insured
California Intermediate Term Portfolio Series 12 and Delaware Portfolio
Series 14 included herein and to the reference to our Firm as experts under
the heading "Auditors" in the prospectus which is a part of this
registration statement.
DELOITTE & TOUCHE LLP
April 17, 1997
New York, New York
-1-
Exhibit 23.1d.
Letterhead of Standard & Poor's
A Division of The McGraw-Hill Companies, Inc.
April 17, 1997
Dean Witter Reynolds Inc.
Two World Trade Center
New York, New York 10048
Re: Dean Witter Select Municipal Trust,
Insured California Intermediate Term
Portfolio Series 12
Gentlemen:
It is our understanding that you are filing with the
Securities and Exchange Commission a post-effective amendment
to the above-captioned trust, SEC file number 33-50275.
Since the portfolio is composed solely of securities
covered by bond insurance policies that insure against default
in the payment of principal and interest on the securities for
so long as they remain outstanding and such policies have been
issued by one or more insurance companies which have been
assigned "AAA" claims paying ability ratings by S&P, we
reaffirm the assignment of a "AAA" rating to the units of the
trust and a "AAA" rating to the securities contained in the
trust.
You have permission to use the name of Standard &
Poor's Ratings Services, a division of The McGraw-Hill
Companies, Inc., 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 in the trust. Further, it
should be understood that 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. Standard & Poor's
reserves the right to advise its own clients, subscribers, and
the public of the ratings. Standard & Poor's relies on the
-2-
sponsor and its counsel, accountants, and other experts for the
accuracy and completeness of the information submitted in
connection with the ratings. Standard & Poor's 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 Ratings Service, a division of The
McGraw-Hill Companies, Inc., in connection with the rating
assigned to the units in the amendment referred to above.
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 Ratings
Services, a division of The McGraw-Hill Companies, Inc., 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.
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
Sanford B. Bragg
Managing Director
-3-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND> THE SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE FINANCIAL
STATEMENTS FOR DEAN WITTER SELECT
MUNICIPAL TRUST INSURED CALIFORNIA
INTERMEDIATE LONG TERM 12 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS
<RESTATED>
<CIK> 0000914293
<NAME> DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA INTERMEDIATE LONG
TERM 12
<SERIES>
<NAME> DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA INTERMEDIATE LONG
TERM
<NUMBER> 1
<MULTIPLIER> 1
<FISCAL-YEAR-END> Feb-28-1997
<PERIOD-START> Mar-1-1996
<PERIOD-END> Feb-28-1997
<PERIOD-TYPE> YEAR
<INVESTMENTS-AT-COST> 4,471,006
<INVESTMENTS-AT-VALUE> 4,593,815
<RECEIVABLES> 79,448
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4,673,263
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 64,279
<TOTAL-LIABILITIES> 64,279
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,468,345
<SHARES-COMMON-STOCK> 4,525,796
<SHARES-COMMON-PRIOR> 4,716,325
<ACCUMULATED-NII-CURRENT> 17,830
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 122,809
<NET-ASSETS> 4,608,984
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 224,126
<OTHER-INCOME> 3,584
<EXPENSES-NET> 11,649
<NET-INVESTMENT-INCOME> 216,061
<REALIZED-GAINS-CURRENT> 1,646
<APPREC-INCREASE-CURRENT> (22,799)
<NET-CHANGE-FROM-OPS> 194,908
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 212,168
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 190,529
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (210,368)
<ACCUMULATED-NII-PRIOR> 18,174
<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>
<PAGE>
<ARTICLE> 6
<LEGEND> THE SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE FINANCIAL
STATEMENTS FOR DEAN WITTER SELECT
MUNICIPAL TRUST DELAWARE PORTFOLIO
SERIES 14 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS
<RESTATED>
<CIK> 0000911655
<NAME> DEAN WITTER SELECT MUNICIPAL TRUST
DELAWARE PORTFOLIO SERIES 14
<SERIES>
<NAME> DEAN WITTER SELECT MUNICIPAL TRUST
DELAWARE PORTFOLIO SERIES
<NUMBER> 14
<MULTIPLIER> 1
<FISCAL-YEAR-END> Feb-28-1997
<PERIOD-START> Mar-1-1996
<PERIOD-END> Feb-28-1997
<PERIOD-TYPE> YEAR
<INVESTMENTS-AT-COST> 3,495,252
<INVESTMENTS-AT-VALUE> 3,604,999
<RECEIVABLES> 58,917
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,663,916
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 46,333
<TOTAL-LIABILITIES> 46,333
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,493,839
<SHARES-COMMON-STOCK> 3,574
<SHARES-COMMON-PRIOR> 3,719
<ACCUMULATED-NII-CURRENT> 13,997
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 109,747
<NET-ASSETS> 3,617,583
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 179,694
<OTHER-INCOME> 6,389
<EXPENSES-NET> 8,980
<NET-INVESTMENT-INCOME> 177,103
<REALIZED-GAINS-CURRENT> (401)
<APPREC-INCREASE-CURRENT> (39,228)
<NET-CHANGE-FROM-OPS> 137,474
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 170,518
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 145
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (178,285)
<ACCUMULATED-NII-PRIOR> 14,214
<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>
