SUPPLEMENT dated August 24 , 1998
To Prospectuses of
Defined Asset Funds:
--------------------
Florida Insured Series
Florida Insured Series 2
Municipal Insured Series
Municipal Insured Series 2
Municipal State Series
Municipal State Series 3
Municipal State Series 4
New York Insured Series
Sales Charge. The sales charge on Units of this Fund has been reduced.
The maximum sales charge (up-front and deferred combined) for Units is $30 per
Unit until the final deferred sales charge installment is deducted. This
sales charge may be more or less than 2.9% depending on the net asset value
of the Units.
Units purchased after the deduction of the final deferred sales charge
installment will be subject to the following schedule:
Maximum Sales Charge
--------------------
<TABLE>
<CAPTION>
As % of As % of
Net Amount Public
Time to Maturity Invested Offering Price
- ---------------- ---------- --------------
<S> <C> <C>
15 Years or Longer 2.987% 2.90%
8 Years to less than 15 Years 2.828 2.75
4 Years to less than 8 Years 2.564 2.50
1 Year to less than 4 Years 1.523 1.50
6 Months to less than 1 Year 0.503 0.50
Less than 6 Months 0 0
</TABLE>
The maximum sales charge is reduced further if you invest at least $100,000,
as follows:
<TABLE>
<CAPTION>
Percentage
Of Maximum
Amount Invested Sales Charge
- --------------- ------------
<S> <C>
Less than 100,000 100%
$100,000-$249,999 90
$250,000-$499,999 85
$500,000-$999,999 75
$1,000,000 or More 65
</TABLE>
Selling dealers receive 65% of the sales charge.
Revised Sponsors' Fees. The Sponsors receive annual fees to reimburse the
Sponsors for their costs of providing portfolio supervision, bookkeeping and
administrative services and for any other expenses properly chargeable to the
Fund. The fees for these services have been combined and currently total
$0.45 per $1,000 face amount a year. While these fees may exceed the costs
and expenses for this Fund, the total of these fees from all Defined Asset
Funds will not exceed the aggregate costs and expenses for all Funds for any
calendar year.
