MUNICIPAL INVESTMENT TR FD MULTISTATE SER 304 DEF ASSET FDS, 497, 1999-03-30

MUNICIPAL INVESTMENT TR FD MULTISTATE SER 304 DEF ASSET FDS
497, 1999-03-30

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<PAGE>
DEFINED ASSET FUNDSSM
- --------------------------------------------
- ----------------------------------

MUNICIPAL INVESTMENT TRUST FUND
MULTISTATE SERIES--304
(A UNIT INVESTMENT TRUST)
O CALIFORNIA, MARYLAND AND VIRGINIA PORTFOLIOS
O PORTFOLIOS OF INTERMEDIATE AND LONG-TERM
MUNICIPAL BONDS
O DESIGNED FOR FEDERALLY TAX-FREE INCOME
O EXEMPT FROM SOME STATE TAXES
O MONTHLY DISTRIBUTIONS

SPONSORS:
Merrill Lynch,
Pierce, Fenner & Smith -------------------------------------------------
Incorporated The Securities and Exchange Commission has not
Salomon Smith Barney Inc. approved or disapproved these Securities or
Prudential Securities passed upon the adequacy of this prospectus. Any
Incorporated representation to the contrary is a criminal
PaineWebber Incorporated offense.
Dean Witter Reynolds Inc. Prospectus dated March 26, 1999.

<PAGE>
- --------------------------------------------------------------------------------

Defined Asset FundsSM
Defined Asset FundsSM is America's oldest and largest family of unit investment
trusts, with over $160 billion sponsored over the last 28 years. Defined Asset
Funds has been a leader in unit investment trust research and product
innovation. Our family of Funds helps investors work toward their financial
goals with a full range of quality investments, including municipal, corporate
and government bond portfolios, as well as domestic and international equity
portfolios.

Defined Asset Funds offer a number of advantages:
o A disciplined strategy of buying and holding with a long-term view is the
cornerstone of Defined Asset Funds.
o Fixed portfolio: Defined Funds follow a buy and hold investment strategy;
funds are not managed and portfolio changes are limited.
o Defined Portfolios: We choose the stocks and bonds in advance, so you know
what you're investing in.
o Professional research: Our dedicated research team seeks out stocks or bonds
appropriate for a particular fund's objectives.
o Ongoing supervision: We monitor each portfolio on an ongoing basis.
No matter what your investment goals, tolerance for risk or time horizon,
there's probably a Defined Asset Fund that suits your investment style. Your
financial professional can help you select a Defined Asset Fund that works best
for your investment portfolio.

THE FINANCIAL INFORMATION IN THIS PROSPECTUS IS AS OF DECEMBER 31, 1998, THE
EVALUATION DATE.

CONTENTS
PAGE
-----------
California Intermediate Insured Portfolio--
Risk/Return Summary.................................. 3
Maryland Portfolio--Risk/Return Summary................. 6
Virginia Portfolio--Risk/Return Summary................. 9
What You Can Expect From Your Investment................ 13
Monthly Income....................................... 13
Return Figures....................................... 13
Records and Reports.................................. 13
The Risks You Face...................................... 14
Interest Rate Risk................................... 14
Call Risk............................................ 14
Reduced Diversification Risk......................... 14
Liquidity Risk....................................... 14
Concentration Risk................................... 14
State Concentration Risk............................. 15
Bond Quality Risk.................................... 16
Insurance Related Risk............................... 16
Litigation and Legislation Risks..................... 17
Selling or Exchanging Units............................. 17
Sponsors' Secondary Market........................... 17
Selling Units to the Trustee......................... 17
Exchange Option...................................... 18
How The Fund Works...................................... 18
Pricing.............................................. 18
Evaluations.......................................... 19
Income............................................... 19
Expenses............................................. 19
Portfolio Changes.................................... 20
Fund Termination..................................... 20
Certificates......................................... 20
Trust Indenture...................................... 20
Legal Opinion........................................ 21
Auditors............................................. 21
Sponsors............................................. 21
Trustee.............................................. 22
Underwriters' and Sponsors' Profits 22
Public Distribution.................................. 22
Code of Ethics....................................... 22
Year 2000 Issues..................................... 22
Taxes................................................... 23
Supplemental Information................................ 25
Financial Statements.................................... D-1

2
<PAGE>
- --------------------------------------------------------------------------------

CALIFORNIA INTERMEDIATE INSURED PORTFOLIO--RISK/RETURN SUMMARY

1. WHAT IS THE FUND'S OBJECTIVE?
The Fund seeks interest income that is exempt from regular
federal income taxes and some state and local taxes by
investing in a fixed portfolio consisting primarily of
insured, intermediate-term municipal revenue bonds with an
estimated average life of approximately 12 years.
2. WHAT ARE MUNICIPAL REVENUE BONDS?
Municipal revenue bonds are bonds issued by states,
municipalities and public authorities to finance the cost
of buying, building or improving various projects intended
to generate revenue, such as airports, health care
facilities, housing and municipal electric, water and sewer
utilities. Generally, payments on these bonds depend solely
on the revenues generated by the projects, excise taxes or
state appropriations, and are not backed by the
government's taxing power.

3. WHAT IS THE FUND'S INVESTMENT STRATEGY?
O The Fund plans to hold to maturity 9 intermediate-term
tax-exempt municipal bonds, and some short-term bonds
reserved to pay the deferred sales fee, with an aggregate
face amount of $3,495,000.
o The Fund is a unit investment trust which means that,
unlike a mutual fund, the Portfolio is not managed.
o The bonds are rated AAA or Aaa by Standard & Poor's,
Moody's or Fitch.
o Many of the bonds can be called at a premium declining over
time to par value. Some bonds may be called earlier at par
for extraordinary reasons.
o 100% of the bonds are insured by insurance companies that
guarantee timely payments of principal and interest on the
bonds (but not Fund units or the market value of the bonds
before they mature).

The Portfolio consists of municipal bonds of the following
types:

APPROXIMATE
PORTFOLIO
PERCENTAGE

/ / Airports/Ports/Highways 11%
/ / Hospital/Health Care 14%
/ / Lease Rental Appropriation 15%
/ / Miscellaneous 1%
/ / Solid Waste Disposal 13%
/ / Special Tax 16%
/ / State/Local 14%
/ / Tax Allocation 16%

4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN
HAPPEN FOR VARIOUS REASONS, INCLUDING:
o Rising interest rates, an issuer's worsening financial
condition or a drop in bond ratings can reduce the price of
your units.
o Assuming no changes in interest rates, when you sell your
units, they will generally be worth less than your cost
because your cost included a sales fee.
o The Fund will receive early returns of principal if bonds
are called or sold before they mature. If this happens your
income will decline and you may not be able to reinvest the
money you receive at as high a yield or as long a maturity.

ALSO, THE PORTFOLIO IS CONCENTRATED IN BONDS OF CALIFORNIA
SO IT IS LESS DIVERSIFIED THAN A NATIONAL FUND AND IS
SUBJECT TO RISKS PARTICULAR TO CALIFORNIA WHICH ARE BRIEFLY
DESCRIBED UNDER STATE CONCENTRATION RISKS LATER IN THIS
PROSPECTUS.

3
<PAGE>

5. IS THIS FUND APPROPRIATE FOR YOU?
Yes, if you want federally tax-free income. You will
benefit from a professionally selected and supervised
portfolio whose risk is reduced by investing in insured
bonds of several different issuers.
The Fund is not appropriate for you if you want a
speculative investment that changes to take advantage of
market movements, if you do not want a tax-advantaged
investment or if you cannot tolerate any risk.

DEFINING YOUR INCOME

WHAT YOU MAY EXPECT (Payable on the 25th day of
the month to holders of record on the 10th day
of the month):
Regular Monthly Income per unit $ 4.20
Annual Income per unit: $ 50.45
These figures are estimates determined on the evaluation
day; actual payments may vary.

6. WHAT ARE THE FUND'S FEES AND EXPENSES?
This table shows the costs and expenses you may pay,
directly or indirectly, when you invest in the Fund.
INVESTOR FEES
Maximum Sales Fee (Load) on new
purchases (as a percentage of
$1,000 invested) 2.75%
You will pay an up-front sales fee of 1.005%, as well as a
deferred sales fee of $3.75 per unit quarterly November,
February, May and August through February, 2000. Employees
of some of the Sponsors and their affiliates may pay a
reduced sales fee of no less than $5.00 per unit.
The maximum sales fee is reduced if you invest at least
$100,000, as follows:

YOUR MAXIMUM
SALES FEE
IF YOU INVEST: WILL BE:
----------------------------------- -----------------
Less than $100,000 2.75%
$100,000 to $249,999 2.50%
$250,000 to $499,999 2.25%
$500,000 to $999,999 2.00%
$1,000,000 and over 1.75%

Maximum Exchange Fee 1.75%

ESTIMATED ANNUAL FUND OPERATING EXPENSES

AMOUNT
PER UNIT
-----------
$ 0.71
Trustee's Fee
$ 0.45
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
$ 0.38
Evaluator's Fee
$ 0.20
Organization Costs
$ 0.51
Other Operating Expenses
-----------
$ 2.25
TOTAL

The Sponsors historically paid organization costs and
updating expenses.
7. HOW HAVE SIMILAR FUNDS PERFORMED IN THE PAST?
In the following chart we show past performance of prior
California Portfolios, which had investment objectives,
strategies and types of bonds substantially similar to
this Fund. These prior Series differed in that they
charged a higher sales fee. These prior California Series
were offered between June 22, 1988 and September 27, 1996
and were outstanding on December 31, 1998. OF COURSE, PAST
PERFORMANCE OF PRIOR SERIES IS NO GUARANTEE OF FUTURE
RESULTS OF THIS FUND.
AVERAGE ANNUAL COMPOUND TOTAL RETURNS
FOR PRIOR SERIES
Reflecting all expenses. For periods ended 12/31/98.

WITH SALES FEE NO SALES FEE
1 YEAR 5 YEARS 10 YEARS 1 YEAR 5 YEARS 10 YEARS

- -------------------------------------------------------------------

High 4.90% 5.03% 6.89% 7.72% 6.21% 7.48%
Average 2.54 4.30 6.87 5.81 5.32 7.46
Low 0.60 3.70 6.83 3.45 4.53 7.43

- -------------------------------------------------------------------

Average
Sales fee 3.24% 5.09% 5.82%

- -------------------------------------------------------------------

Note: All returns represent changes in unit price with distributions reinvested
into the Municipal Fund Investment Accumulation Program.

8. IS THE FUND MANAGED?
Unlike a mutual fund, the Fund is not managed and bonds are
not sold because of market changes. Rather, experienced
Defined Asset Funds financial analysts regularly review the
bonds in the Fund. The Fund may sell a bond if certain
adverse credit or other conditions exist.

4
<PAGE>

9. HOW DO I BUY UNITS?
The minimum investment is one unit.
You can buy units from any of the Sponsors and other
broker-dealers. The Sponsors are listed later in this
prospectus. Some banks may offer units for sale through
special arrangements with the Sponsors, although certain
legal restrictions may apply.
UNIT PRICE PER UNIT $1,096.33
(as of December 31, 1998)
Unit price is based on the net asset value of the Fund plus
the sales fee. An amount equal to any principal cash, as
well as net accrued but undistributed interest on the unit,
is added to the unit price. An independent evaluator prices
the bonds at 3:30 p.m. Eastern time every business day.
Unit price changes every day with changes in the prices of
the bonds in the Fund.
10. HOW DO I SELL UNITS?
You may sell your units at any time to any Sponsor or the
Trustee for the net asset value determined at the close of
business on the date of sale, less any remaining deferred
sales fee. You will not pay any other fee when you sell
your units.

11. HOW ARE DISTRIBUTIONS MADE AND TAXED?
The Fund pays income monthly.
In the opinion of bond counsel when each bond was issued,
interest on the bonds in this Fund is generally 100% exempt
from regular federal income tax. Your income may also be
exempt from some California state and local personal income
taxes if you live in California.
You will also receive principal payments if bonds are sold
or called or mature, when the cash available is more than
$5.00 per unit. You will be subject to tax on any gain
realized by the Fund on the disposition of bonds.
12. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You will receive your income in cash unless you choose to
compound your income by reinvesting at no sales fee in the
Municipal Fund Investment Accumulation Program, Inc. This
program is an open-end mutual fund with a comparable
investment objective, but the bonds will generally not be
insured. Income from this program will generally be subject
to state and local income taxes. For more complete
information about the program, including charges and fees,
ask the Trustee for the program's prospectus. Read it
carefully before you invest. The Trustee must receive your
written election to reinvest at least 10 days before the
record day of an income payment.
EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain
other Defined Asset Funds. You may also exchange into this
Fund from certain other funds. We charge a reduced sales fee
on exchanges.

5
<PAGE>
- --------------------------------------------------------------------------------

MARYLAND PORTFOLIO--RISK/RETURN SUMMARY

1. WHAT IS THE FUND'S OBJECTIVE?
The Fund seeks interest income that is exempt from regular
federal income taxes and some state and local taxes by
investing in a fixed portfolio consisting primarily of
insured, long-term municipal revenue bonds.
2. WHAT ARE MUNICIPAL REVENUE BONDS?
Municipal revenue bonds are bonds issued by states,
municipalities and public authorities to finance the cost
of buying, building or improving various projects intended
to generate revenue, such as airports, health care
facilities, housing and municipal electric, water and sewer
utilities. Generally, payments on these bonds depend solely
on the revenues generated by the projects, excise taxes or
state appropriations, and are not backed by the
government's taxing power.

3. WHAT IS THE FUND'S INVESTMENT STRATEGY?
O The Fund plans to hold to maturity 9 long-term tax-exempt
municipal bonds, and some short-term bonds reserved to pay
the deferred sales fee, with an aggregate face amount of
$3,060,000.
o The Fund is a unit investment trust which means that,
unlike a mutual fund, the Portfolio is not managed.
o When the bonds were initially deposited they were rated A
or better by Standard & Poor's, Moody's or Fitch. The
quality of the bonds may currently be lower.
o Many of the bonds can be called at a premium declining over
time to par value. Some bonds may be called earlier at par
for extraordinary reasons.
o 42% of the bonds are insured by insurance companies that
guarantee timely payments of principal and interest on the
bonds (but not Fund units or the market value of the bonds
before they mature).

The Portfolio consists of municipal bonds of the following
types:

APPROXIMATE
PORTFOLIO
PERCENTAGE

/ / Airports/Ports/Highways 10%
/ / General Obligation 3%
/ / Hospital/Health Care 16%
/ / Housing 30%
/ / Lease Rental Appropriation 15%
/ / Municipal Water/Sewer Utilities 13%
/ / Universities/Colleges 13%

4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN
HAPPEN FOR VARIOUS REASONS, INCLUDING:
o Rising interest rates, an issuer's worsening financial
condition or a drop in bond ratings can reduce the price of
your units.
o Because the Fund is concentrated in housing bonds, adverse
developments in this sector may affect the value of your
units.
o Assuming no changes in interest rates, when you sell your
units, they will generally be worth less than your cost
because your cost included a sales fee.
o The Fund will receive early returns of principal if bonds
are called or sold before they mature. If this happens your
income will decline and you may not be able to reinvest the
money you receive at as high a yield or as long a maturity.

6
<PAGE>

ALSO, THE PORTFOLIO IS CONCENTRATED IN BONDS OF MARYLAND SO
IT IS LESS DIVERSIFIED THAN A NATIONAL FUND AND IS SUBJECT
TO RISKS PARTICULAR TO MARYLAND WHICH ARE BRIEFLY DESCRIBED
UNDER STATE CONCENTRATION RISKS LATER IN THIS PROSPECTUS.
5. IS THIS FUND APPROPRIATE FOR YOU?
Yes, if you want federally tax-free income. You will
benefit from a professionally selected and supervised
portfolio whose risk is reduced by investing in insured
bonds of several different issuers.
The Fund is not appropriate for you if you want a
speculative investment that changes to take advantage of
market movements, if you do not want a tax-advantaged
investment or if you cannot tolerate any risk.

DEFINING YOUR INCOME

WHAT YOU MAY EXPECT (Payable on the 25th day of
the month to holders of record on the 10th day
of the month):
Regular Monthly Income per unit $ 4.40
Annual Income per unit: $ 52.90
These figures are estimates determined on the evaluation
day; actual payments may vary.

6. WHAT ARE THE FUND'S FEES AND EXPENSES?
This table shows the costs and expenses you may pay,
directly or indirectly, when you invest in the Fund.
INVESTOR FEES
Maximum Sales Fee (Load) on new
purchases (as a percentage of
$1,000 invested) 2.90%
You will pay an up-front sales fee of 1.125%, as well as a
deferred sales fee of $3.75 per unit quarterly November,
February, May and August through February, 2000. Employees
of some of the Sponsors and their affiliates may pay a
reduced sales fee of no less than $5.00 per unit.
The maximum sales fee is reduced if you invest at least
$100,000, as follows:

YOUR MAXIMUM
SALES FEE
IF YOU INVEST: WILL BE:
----------------------------------- -----------------
Less than $100,000 2.90%
$100,000 to $249,999 2.65%
$250,000 to $499,999 2.40%
$500,000 to $999,999 2.15%
$1,000,000 and over 1.90%

Maximum Exchange Fee 1.90%

ESTIMATED ANNUAL FUND OPERATING EXPENSES

AMOUNT
PER UNIT
-----------
$ 0.71
Trustee's Fee
$ 0.45
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
$ 0.43
Evaluator's Fee
$ 0.20
Organization Costs
$ 0.59
Other Operating Expenses
-----------
$ 2.38
TOTAL

The Sponsors historically paid organization costs and
updating expenses.
7. HOW HAVE SIMILAR FUNDS PERFORMED IN THE PAST?
In the following chart we show past performance of prior
Maryland Portfolios, which had investment objectives,
strategies and types of bonds substantially similar to
this Fund. These prior Series differed in that they
charged a higher sales fee. These prior Maryland Series
were offered between September 22, 1988 and September 27,
1996 and were outstanding on December 31, 1998. OF COURSE,
PAST PERFORMANCE OF PRIOR SERIES IS NO GUARANTEE OF FUTURE
RESULTS OF THIS FUND.
AVERAGE ANNUAL COMPOUND TOTAL RETURNS
FOR PRIOR SERIES
Reflecting all expenses. For periods ended 12/31/98.

WITH SALES FEE NO SALES FEE
1 YEAR 5 YEARS 1 YEAR 5 YEARS
- ---------------------------------------------------------------
High 5.78% 4.83% 6.83% 6.01%
Average 2.81 4.27 5.48 5.29
Low 0.50 3.88 4.51 4.73
- ---------------------------------------------------------------

Average
Sales fee 2.65% 5.03%

- -------------------------------------------------------------

Note: All returns represent changes in unit price with distributions reinvested
into the Municipal Fund Investment Accumulation Program.

7
<PAGE>

9. HOW DO I BUY UNITS?
The minimum investment is one unit.
You can buy units from any of the Sponsors and other
broker-dealers. The Sponsors are listed later in this
prospectus. Some banks may offer units for sale through
special arrangements with the Sponsors, although certain
legal restrictions may apply.
UNIT PRICE PER UNIT $1,069.33
(as of December 31, 1998)
Unit price is based on the net asset value of the Fund plus
the sales fee. An amount equal to any principal cash, as
well as net accrued but undistributed interest on the unit,
is added to the unit price. An independent evaluator prices
the bonds at 3:30 p.m. Eastern time every business day.
Unit price changes every day with changes in the prices of
the bonds in the Fund.
10. HOW DO I SELL UNITS?
You may sell your units at any time to any Sponsor or the
Trustee for the net asset value determined at the close of
business on the date of sale, less any remaining deferred
sales fee. You will not pay any other fee when you sell
your units.

11. HOW ARE DISTRIBUTIONS MADE AND TAXED?
The Fund pays income monthly.
In the opinion of bond counsel when each bond was issued,
interest on the bonds in this Fund is generally 100% exempt
from regular federal income tax. Your income may also be
exempt from some Maryland state and local personal income
taxes if you live in Maryland.
You will also receive principal payments if bonds are sold
or called or mature, when the cash available is more than
$5.00 per unit. You will be subject to tax on any gain
realized by the Fund on the disposition of bonds.
12. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You will receive your income in cash unless you choose to
compound your income by reinvesting at no sales fee in the
Municipal Fund Investment Accumulation Program, Inc. This
program is an open-end mutual fund with a comparable
investment objective. Income from this program will
generally be subject to state and local income taxes. For
more complete information about the program, including
charges and fees, ask the Trustee for the program's
prospectus. Read it carefully before you invest. The Trustee
must receive your written election to reinvest at least 10
days before the record day of an income payment.
EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain
other Defined Asset Funds. You may also exchange into this
Fund from certain other funds. We charge a reduced sales fee
on exchanges.

8
<PAGE>
- --------------------------------------------------------------------------------

VIRGINIA PORTFOLIO--RISK/RETURN SUMMARY

1. WHAT IS THE FUND'S OBJECTIVE?
The Fund seeks interest income that is exempt from regular
federal income taxes and some state and local taxes by
investing in a fixed portfolio consisting primarily of
long-term municipal revenue bonds.
2. WHAT ARE MUNICIPAL REVENUE BONDS?
Municipal revenue bonds are bonds issued by states,
municipalities and public authorities to finance the cost
of buying, building or improving various projects intended
to generate revenue, such as airports, health care
facilities, housing and municipal electric, water and sewer
utilities. Generally, payments on these bonds depend solely
on the revenues generated by the projects, excise taxes or
state appropriations, and are not backed by the
government's taxing power.

3. WHAT IS THE FUND'S INVESTMENT STRATEGY?
O The Fund plans to hold to maturity 9 long-term tax-exempt
municipal bonds, any some short-term bonds reserved to pay
the deferred sales fee, with an aggregate face amount of
$3,295,000.
o The Fund is a unit investment trust which means that,
unlike a mutual fund, the Portfolio is not managed.
o When the bonds were initially deposited they were rated A
or better by Standard & Poor's, Moody's or Fitch. The
quality of the bonds may currently be lower.
o Many of the bonds can be called at a premium declining over
time to par value. Some bonds may be called earlier at par
for extraordinary reasons.
o 41% of the bonds are insured by insurance companies that
guarantee timely payments of principal and interest on the
bonds (but not Fund units or the market value of the bonds
before they mature).

The Portfolio consists of municipal bonds of the following
types:

APPROXIMATE
PORTFOLIO
PERCENTAGE

/ / Airports/Ports/Highways 11%
/ / Hospital/Health Care 45%
/ / Housing 15%
/ / Lease Rental Appropriation 15%
/ / Miscellaneous 14%

4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN
HAPPEN FOR VARIOUS REASONS, INCLUDING:
o Rising interest rates, an issuer's worsening financial
condition or a drop in bond ratings can reduce the price of
your units.
o Because the Fund is concentrated in hospital/health care
bonds, adverse developments in these sectors may affect the
value of your units.
o Assuming no changes in interest rates, when you sell your
units, they will generally be worth less than your cost
because your cost included a sales fee.
o The Fund will receive early returns of principal if bonds
are called or sold before they mature. If this happens your
income will decline and you may not be able to reinvest the
money you receive at as high a yield or as long a maturity.

9
<PAGE>

ALSO, THE PORTFOLIO IS CONCENTRATED IN BONDS OF VIRGINIA SO
IT IS LESS DIVERSIFIED THAN A NATIONAL FUND AND IS SUBJECT
TO RISKS PARTICULAR TO VIRGINIA WHICH ARE BRIEFLY DESCRIBED
UNDER STATE CONCENTRATION RISKS LATER IN THIS PROSPECTUS.
5. IS THIS FUND APPROPRIATE FOR YOU?
Yes, if you want federally tax-free income. You will
benefit from a professionally selected and supervised
portfolio whose risk is reduced by investing in bonds of
several different issuers.
The Fund is not appropriate for you if you want a
speculative investment that changes to take advantage of
market movements, if you do not want a tax-advantaged
investment or if you cannot tolerate any risk.

DEFINING YOUR INCOME

WHAT YOU MAY EXPECT (Payable on the 25th day of
the month to holders of record on the 10th day
of the month):
Regular Monthly Income per unit $ 4.39
Annual Income per unit: $ 52.71
These figures are estimates determined on the evaluation
day; actual payments may vary.

6. WHAT ARE THE FUND'S FEES AND EXPENSES?
This table shows the costs and expenses you may pay,
directly or indirectly, when you invest in the Fund.
INVESTOR FEES
Maximum Sales Fee (Load) on new
purchases (as a percentage of
$1,000 invested) 2.90%
You will pay an up-front sales fee of 1.125%, as well as a
deferred sales fee of $3.75 per unit quarterly November,
February, May and August, through February, 2000. Employees
of some of the Sponsors and their affiliates may pay a
reduced sales fee of no less than $5.00 per unit.
The maximum sales fee is reduced if you invest at least
$100,000, as follows:

Maximum Exchange Fee 1.90%

ESTIMATED ANNUAL FUND OPERATING EXPENSES

AMOUNT
PER UNIT
-----------
$ 0.71
Trustee's Fee
$ 0.46
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
$ 0.40
Evaluator's Fee
$ 0.20
Organization Costs
$ 0.54
Other Operating Expenses
-----------
$ 2.31
TOTAL

The Sponsors historically paid organization costs and
updating expenses.
7. HOW HAVE SIMILAR FUNDS PERFORMED IN THE PAST?
In the following chart we show past performance of prior
Virginia Portfolios, which had investment objectives,
strategies and types of bonds substantially similar to
this Fund. These prior Series differed in that they
charged a higher sales fee. These prior Virginia Series
were offered between March 9, 1988 and September 13, 1996
and were outstanding on December 31, 1998. OF COURSE, PAST
PERFORMANCE OF PRIOR SERIES IS NO GUARANTEE OF FUTURE
RESULTS OF THIS FUND.
AVERAGE ANNUAL COMPOUND TOTAL RETURNS
FOR PRIOR SERIES
Reflecting all expenses. For periods ended 12/31/98.

WITH SALES FEE NO SALES FEE
1 YEAR 5 YEARS 1 YEAR 5 YEARS
- ---------------------------------------------------------------
High 4.15% 4.99% 7.64% 6.13%
Average 2.91 4.33 5.42 5.30
Low 0.36 3.64 3.81 4.42
- ---------------------------------------------------------------

Average
Sales fee 2.49% 4.81%

- -------------------------------------------------------------

Note: All returns represent changes in unit price with distributions reinvested
into the Municipal Fund Investment Accumulation Program.

10
<PAGE>

9. HOW DO I BUY UNITS?
The minimum investment is one unit.
You can buy units from any of the Sponsors and other
broker-dealers. The Sponsors are listed later in this
prospectus. Some banks may offer units for sale through
special arrangements with the Sponsors, although certain
legal restrictions may apply.
UNIT PRICE PER UNIT $1,072.29
(as of December 31, 1998)
Unit price is based on the net asset value of the Fund plus
the sales fee. An amount equal to any principal cash, as
well as net accrued but undistributed interest on the unit,
is added to the unit price. An independent evaluator prices
the bonds at 3:30 p.m. Eastern time every business day.
Unit price changes every day with changes in the prices of
the bonds in the Fund.
10. HOW DO I SELL UNITS?
You may sell your units at any time to any Sponsor or the
Trustee for the net asset value determined at the close of
business on the date of sale, less any remaining deferred
sales fee. You will not pay any other fee when you sell
your units.

11. HOW ARE DISTRIBUTIONS MADE AND TAXED?
The Fund pays income monthly.
In the opinion of bond counsel when each bond was issued,
interest on the bonds in this Fund is generally 100% exempt
from regular federal income tax. Your income may also be
exempt from some Virginia state and local personal income
taxes if you live in Virginia.
You will also receive principal payments if bonds are sold
or called or mature, when the cash available is more than
$5.00 per unit. You will be subject to tax on any gain
realized by the Fund on the disposition of bonds.
12. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You will receive your income in cash unless you choose to
compound your income by reinvesting at no sales fee in the
Municipal Fund Investment Accumulation Program, Inc. This
program is an open-end mutual fund with a comparable
investment objective. Income from this program will
generally be subject to state and local income taxes. For
more complete information about the program, including
charges and fees, ask the Trustee for the program's
prospectus. Read it carefully before you invest. The Trustee
must receive your written election to reinvest at least 10
days before the record day of an income payment.
EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain
other Defined Asset Funds. You may also exchange into this
Fund from certain other funds. We charge a reduced sales fee
on exchanges.

11
<PAGE>
- --------------------------------------------------------------------------------
TAX-FREE VS. TAXABLE INCOME: A COMPARISON OF TAXABLE AND TAX-FREE YIELDS

FOR CALIFORNIA RESIDENTS
- --------------------------------------------------------------------------------

COMBINED
EFFECTIVE
TAXABLE INCOME 1999* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 4% 4.5% 5% 5.5% 6% 6.5% 7% 7.5% 8%
IS EQUIVALENT TO A TAXABLE YIELD OF

- --------------------------------------------------------------------------------

FOR MARYLAND RESIDENTS
- --------------------------------------------------------------------------------

COMBINED
EFFECTIVE
TAXABLE INCOME 1998* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 3% 3.5% 4% 4.5% 5% 5.5% 6% 6.5%
IS EQUIVALENT TO A TAXABLE YIELD OF

- --------------------------------------------------------------------------------

FOR VIRGINIA RESIDENTS
- --------------------------------------------------------------------------------

COMBINED
EFFECTIVE
TAXABLE INCOME 1998* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 3% 3.5% 4% 4.5% 5% 5.5% 6% 6.5%
IS EQUIVALENT TO A TAXABLE YIELD OF

- --------------------------------------------------------------------------------

To compare the yield of a taxable security with the yield of a tax-free
security, find your taxable income and read across. The table incorporates 1999
federal and applicable State income tax rates and assumes that all income would
otherwise be taxed at the investor's highest tax rate. Yield figures are for
example only.

*Based upon net amount subject to federal income tax after deductions and
exemptions. This table does not reflect the possible effect of other tax
factors, such as alternative minimum tax, personal exemptions, the phase out of
exemptions, itemized deductions or the possible partial disallowance of
deductions. Consequently, you should consult your own tax advisers in this
regard.

12
<PAGE>
WHAT YOU CAN EXPECT FROM YOUR INVESTMENT

MONTHLY INCOME

The Fund will pay you regular monthly income. Your monthly income may vary
because of:
o elimination of one or more bonds from the Fund's portfolio because of
calls, redemptions or sales;
o a change in the Fund's expenses; or
o the failure by a bond's issuer to pay interest.

Changes in interest rates generally will not affect your income because the
portfolio is fixed.

Along with your income, you will receive your share of any available bond
principal.

RETURN FIGURES

We cannot predict your actual return, which will vary with unit price, how long
you hold your investment and changes in the portfolio, interest income and
expenses.

Estimated Current Return equals the estimated annual cash to be received from
the bonds in the Fund less estimated annual Fund expenses, divided by the Unit
Price (including the maximum sales fee):

Estimated Annual Estimated
Interest Income - Annual Expenses
- -------------------------------------------------
Unit Price

Estimated Long Term Return is a measure of the estimated return over the
estimated life of the Fund. Unlike Estimated Current Return, Estimated Long Term
Return reflects maturities, discounts and premiums of the bonds in the Fund. It
is an average of the yields to maturity (or in certain cases, to an earlier call
date) of the individual bonds in the portfolio, adjusted to reflect the Fund's
maximum sales fee and estimated expenses. We calculate the average yield for the
portfolio by weighting each bond's yield by its market value and the time
remaining to the call or maturity date.

Yields on individual bonds depend on many factors including general conditions
of the bond markets, the size of a particular offering and the maturity and
quality rating of the particular issues. Yields can vary among bonds with
similar maturities, coupons and ratings.

These return quotations are designed to be comparative rather than predictive.

RECORDS AND REPORTS

You will receive:
o a monthly statement of income payments and any principal payments;
o a notice from the Trustee when new bonds are deposited in exchange or
substitution for bonds originally deposited;
o an annual report on Fund activity; and
o annual tax information. This will also be sent to the IRS. You must report the
amount of tax-exempt interest received during the year.

You may request:
o copies of bond evaluations to enable you to comply with federal and state tax
reporting requirements; and
o audited financial statements of the Fund.

You may inspect records of Fund transactions at the Trustee's office during
regular business hours.

13
<PAGE>
THE RISKS YOU FACE

INTEREST RATE RISK

Investing involves risks, including the risk that your investment will decline
in value if interest rates rise. Generally, bonds with longer maturities will
change in value more than bonds with shorter maturities. Bonds in the Fund are
more likely to be called when interest rates decline. This would result in early
returns of principal to you and may result in early termination of the Fund. Of
course, we cannot predict how interest rates may change.

CALL RISK

Many bonds can be prepaid or 'called' by the issuer before their stated
maturity.

For example, some bonds may be required to be called pursuant to mandatory
sinking fund provisions.

Also, an issuer might call its bonds during periods of falling interest rates,
if the issuer's bonds have a coupon higher than current market rates.

An issuer might call its bonds in extraordinary cases, including if:
o it no longer needs the money for the original purpose;
o the project is condemned or sold;
o the project is destroyed and insurance proceeds are used to redeem the
bonds;
o any related credit support expires and is not replaced; or
o interest on the bonds become taxable.

If the bonds are called, your income will decline and you may not be able to
reinvest the money you receive at as high a yield or as long a maturity. An
early call at par of a premium bond will reduce your return.

REDUCED DIVERSIFICATION RISK

If many investors sell their units, the Fund will have to sell bonds. This could
reduce the diversification of your investment and increase your share of Fund
expenses.

LIQUIDITY RISK

You can always sell back your units, but we cannot assure you that a liquid
trading market will always exist for the bonds in the portfolio, especially
since current law may restrict the Fund from selling bonds to any Sponsor. The
bonds will generally trade in the over-the-counter market. The value of the
bonds, and of your investment, may be reduced if trading in bonds is limited or
absent.

CONCENTRATION RISK

When a certain type of bond makes up 25% or more of the portfolio, it is said to
be 'concentrated' in that bond type, which makes the Portfolio less diversified.

Here is what you should know about the Virginia Portfolio's concentration in
hospital and health care bonds.
o payment for these bonds depends on revenues from private third-party payors
and government programs, including Medicare and Medicaid, which have
generally undertaken cost containment measures to limit payments to health
care providers;
o hospitals face increasing competition resulting from hospital mergers and
affiliations;
o hospitals need to reduce costs as HMOs increase market penetration and
hospital supply and drug companies raise prices;
o hospitals and health care providers are subject to various legal claims by
patients and others and are adversely affected by increasing costs of
insurance; and

14
<PAGE>
o many hospitals are aggressively buying physician practices and assuming
risk contracts to gain market share. If revenues do not increase
accordingly, this practice could reduce profits;
o Medicare is changing its reimbursement system for nursing homes. Many
nursing home providers are not sure how they will be treated. In many
cases, the providers may receive lower reimbursements and these would have
to cut expenses to maintain profitability; and
o most retirement/nursing home providers rely on entrance fees for operating
revenues. If people live longer than expected and turnover is lower than
budgeted, operating revenues would be adversely affected by less than
expected entrance fees.

Here is what you should know about the Maryland Portfolio's concentration in
housing bonds. Multi-family housing revenue bonds and single family mortgage
revenue bonds are issued to provide financing for various housing projects.
These bonds are payable primarily from the revenue derived from mortgage loans
to housing projects for low to moderate income familities or notes secured by
mortgages on residences. Repayment of these bonds is dependent upon, among other
things:
o occupany levels;
o rental income;
o the default rate on the underlying mortgage loans;
o the ability of mortgage insurers to pay claims;
o the continued availability of federal, state or local housing subsidiary
programs;
o economic conditions in local markets;
o construction costs;
o taxes;
o utility costs;
o the level of operating expenses; and
o the managerial ability of project managers.

Housing bonds generally may be prepaid at any time. Therefore, their average
life will ordinarily be less then their stated maturity.

Changes to the portfolio from bond redemptions, maturities and sales may affect
the Fund's concentrations over time.

STATE CONCENTRATION RISK

CALIFORNIA RISKS

Generally

From the late 1980s through the early 1990s, an economic recession eroded
California's revenue base. At the same time rapid population growth caused State
expenditures to exceed budget appropriations.

o As a result California experienced a period of sustained budget imbalance.

o Since that time the California economy has improved and the extreme
budgetary pressures have begun to lessen.

State Government

The 1997-98 Budget Act allocated a State budget of approximately $66.9 Billion
and contains no tax increases or reductions. Despite this somewhat improved
state, California's budget is still subject to certain unforeseeable events. For
example:

o In December, 1994, Orange County and its investment pool filed for
bankruptcy. While a settlement has been reached, the full impact on the
State and Orange County is still unknown.

o California faces constant fluctuations in other expenses (including health
and welfare caseloads, property tax receipts, federal funding and natural
disaster relief) that will undoubtedly create new budgetary pressure and
reduce issuers' ability to pay their debts.

15
<PAGE>
o California's general obligation bonds are currently rated A1 by Moody's and
A+ by Standard & Poor's.

Other Risks

Issuers' ability to make payments on bonds (and the remedies available to
bondholders) could also be adversely affected by the following constraints:

o Certain provisions of California's Constitution, laws and regulatory system
contain tax, spending and appropriations limits and prohibit certain new
taxes.

o Certain other California laws subject the users of bond proceeds to strict
rules and limits regarding revenue repayment.

o Bonds of healthcare institutions which are subject to the strict rules and
limits regarding reimbursement payments of California's Medi-Cal program
for health care services to welfare recipients and bonds secured by liens
on real property are two of the types of bonds affected by these
provisions.

MARYLAND RISKS

Generally

The Maryland economy is affected by various economic, social and environmental
conditions, some of which are unique to the state and others which affect the
nation as a whole and the Mid-Atlantic region in particular. For example:

o many residents of the state work for the Federal government in and around
Washington, D.C. Cutbacks in federal spending hurt Maryland more than
other states;

o like those in other states, Maryland businesses are sensitive to changes in
Federal regulation, which can affect their revenues and, therefore, state
tax revenue;

o Maryland has lost many defense and construction jobs in recent years, as
its economy has shifted away from manufacturing and industry and towards
services;

o the state's tax base has eroded as the population has dropped in cities
such as Baltimore.

The state and its local governments are limited in their ability to increase or
impose new taxes or incur indebtedness, which could hurt their ability to meet
debt obligations.

The state's general obligations are rated Aaa by Moody's and AAA by Standard &
Poor's.

VIRGINIA RISKS

Virginia's economy is highly dependent on defense spending:

o there are major concentrations of defense installations in Northern
Virginia and the Hampton Roads area; and

o any substantial reductions in military spending, including base closings,
could hurt both the state and local economies.

The state's general obligations are rated AAA by Standard & Poor's and Aaa by
Moody's.

BOND QUALITY RISK

A reduction in a bond's rating may decrease its value and, indirectly, the value
of your investment in the Fund.

INSURANCE RELATED RISK

Some bonds are backed by insurance companies (as shown under Portfolios).
Insurance policies generally make payments only according to a bond's original
payment schedule and do not make early payments when a bond defaults or becomes
taxable. Although the federal government does not regulate the insurance
business, various state

16
<PAGE>
laws and federal initiatives and tax law changes could significantly affect the
insurance business. The claims-paying ability of the insurance companies is
generally rated A or better by Standard & Poor's or another nationally
recognized rating organization. The insurance company ratings are subject to
change at any time at the discretion of the rating agencies.

LITIGATION AND LEGISLATION RISKS

We do not know of any pending litigation that might have a material adverse
effect upon the Fund.

Future tax legislation could affect the value of the portfolio by:
o limiting real property taxes,
o reducing tax rates,
o imposing a flat or other form of tax, or
o exempting investment income from tax.

SELLING OR EXCHANGING UNITS

You can sell your units at any time for a price based on net asset value. Your
net asset value is calculated each business day by:
o adding the value of the bonds, net accrued interest, cash and any other
Fund assets;
o subtracting accrued but unpaid Fund expenses, unreimbursed Trustee
advances, cash held to buy back units or for distribution to investors and
any other Fund liabilities; and
o dividing the result by the number of outstanding units.

Your net asset value when you sell may be more or less than your cost because of
sales fees, market movements and changes in the portfolio.

If you sell your units before the final deferred sales fee installment, the
amount of any remaining installments will be deducted from your proceeds.

SPONSORS' SECONDARY MARKET

While we are not obligated to do so, we will buy back units at net asset value
without any other fee or charge other than any remaining deferred sales charge.
We may resell the units to other buyers or to the Trustee. You should consult
your financial professional for current market prices to determine if other
broker-dealers or banks are offering higher prices.

We have maintained the secondary market continuously for over 25 years, but we
could discontinue it without prior notice for any business reason.

SELLING UNITS TO THE TRUSTEE

Regardless of whether we maintain a secondary market, you can sell your units to
the Trustee at any time by sending the Trustee a letter (with any outstanding
certificates if you hold Unit certificates). You must properly endorse your
certificates (or execute a written transfer instrument with signatures
guaranteed by an eligible institution). Sometimes, additional documents are
needed such as a trust document, certificate of corporate authority, certificate
of death or appointment as executor, administrator or guardian.

Within seven days after your request and the necessary documents are received,
the Trustee will mail a check to you. Contact the Trustee for additional
information.

As long as we are maintaining a secondary market, the Trustee will sell your
units to us at a price based on net asset value. If there is no secondary
market, the Trustee may sell your units in the over-the-counter market for a

17
<PAGE>
higher price, but it is not obligated to do so. In that case, you will receive
the net proceeds of the sale.

If the Fund does not have cash available to pay you for units you are selling,
the agent for the Sponsors will select bonds to be sold. Bonds will be selected
based on market and credit factors. These sales could be made at times when the
bonds would not otherwise be sold and may result in your receiving less than the
unit par value and also reduce the size and diversity of the Fund.

If you acquire 25% or more of the outstanding units of the Fund and you sell
units with a value exceeding $250,000, the Trustee may choose to pay you 'in
kind' by distributing bonds and cash with a total value equal to the price of
those units. The Trustee will try to distribute bonds in the portfolio pro rata,
but it reserves the right to distribute only one or a few bonds. The Trustee
will act as your agent in an in kind distribution and will either hold the bonds
for your account or sell them as you instruct. You must pay any transaction
costs as well as transfer and ongoing custodial fees on sales of bonds
distributed in kind.

There could be a delay in paying you for your units:
o if the New York Stock Exchange is closed (other than customary weekend and
holiday closings);
o if the SEC determines that trading on the New York Stock Exchange is
restricted or that an emergency exists making sale or evaluation of the
bonds not reasonably practicable; and
o for any other period permitted by SEC order.

EXCHANGE OPTION

You may exchange units of certain Defined Asset Funds for units of this Fund at
a maximum exchange fee of 1.90%. You may exchange units of this Fund for units
of certain other Defined Asset Funds at a reduced sales fee if your investment
goals change. To exchange units, you should talk to your financial professional
about what funds are exchangeable, suitable and currently available.

Normally, an exchange is taxable and you must recognize any gain or loss on the
exchange. However, the IRS may try to disallow a loss if the portfolios of the
two funds are not materially different; you should consult your own tax adviser.

We may amend or terminate this exchange option at any time without notice.

HOW THE FUND WORKS

PRICING

The price of a unit includes interest accrued on the bonds, less expenses, from
the initial most recent Record Day up to, but not including, the settlement
date, which is usually three business days after the purchase date of the unit.

A portion of the price of a unit consists of cash so that the Trustee can
provide you with regular monthly income. When you sell your units you will
receive your share of this cash.

In addition, as with mutual funds, the Fund (and therefore the investors) pay
all or some of the costs of organizing the Fund including:
o cost of initial preparation of legal documents;
o federal and state registration fees;

18
<PAGE>
o initial fees and expenses of the Trustee;
o initial audit; and
o legal expenses and other out-of-pocket expenses.

EVALUATIONS

An independent Evaluator values the bonds on each business day (excluding
Saturdays, Sundays and the following holidays as observed by the New York Stock
Exchange: New Year's Day, Presidents' Day, Martin Luther King, Jr. Day, Good
Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas).
Bond values are based on current bid or offer prices for the bonds or comparable
bonds. In the past, the difference between bid and offer prices of publicly
offered tax-exempt bonds has ranged from 0.5% of face amount on actively traded
issues to 3.5% on inactively traded issues; the difference has averaged between
1 and 2%.

INCOME

The Trustee credits interest to an Income Account and other receipts to a
Capital Account. The Trustee may establish a Reserve Account by withdrawing from
these accounts amounts it considers appropriate to pay any material liability.
These accounts do not bear interest.

EXPENSES

The Trustee is paid monthly. It also benefits when it holds cash for the Fund in
non-interest bearing accounts. The Trustee may also receive additional amounts:
o to reimburse the Trustee for the Fund's operating expenses;
o for extraordinary services and costs of indemnifying the Trustee and the
Sponsors;
o costs of actions taken to protect the Fund and other legal fees and
expenses;
o expenses for keeping the Fund's registration statement current; and
o Fund termination expenses and any governmental charges.

The Sponsors are currently reimbursed up to 45 cents per $1,000 face amount
annually for providing portfolio supervisory, bookkeeping and administrative
services and for any other expenses properly chargeable to the Fund. Legal,
typesetting, electronic filing and regulatory filing fees and expenses
associated with updating the Portfolio's registration statement yearly are also
now chargeable to the Portfolio. While this fee may exceed the amount of these
costs and expenses attributable to this Fund, the total of these fees for all
Series of Defined Asset Funds will not exceed the aggregate amount attributable
to all of these Series for any calendar year. The Fund also pays the Evaluator's
fees.

The Trustee's, Sponsors' and Evaluator's fees may be adjusted for inflation
without investors' approval.

Any quarterly deferred sales fees you owe are paid with interest and principal
from certain bonds. If these amounts are not enough, the rest will be paid out
of distributitons to you from the Fund's Capital and Income Accounts.

The Sponsors will pay advertising and selling expenses at no charge to the Fund.
If Fund expenses exceed initial estimates, the Fund will owe the excess. The
Trustee has a lien on Fund assets to secure reimbursement of Fund

19
<PAGE>
expenses and may sell bonds if cash is not available.

PORTFOLIO CHANGES

The Sponsors and Trustee are not liable for any default or defect in a bond; if
a contract to buy any bond.

Unlike a mutual fund, the portfolio is designed to remain intact and we may keep
bonds in the portfolio even if their credit quality declines or other adverse
financial circumstances occur. However, we may sell a bond in certain cases if
we believe that certain adverse credit conditions exist or if a bond becomes
taxable.

If we maintain a secondary market in units but are unable to sell the units that
we buy in the secondary market, we will redeem units, which will affect the size
and composition of the portfolio. Units offered in the secondary market may not
represent the same face amount of bonds that they did originally.

We decide whether or not to offer units for sale that we acquire in the
secondary market after reviewing:
o diversity of the portfolio;
o size of the Fund relative to its original size;
o ratio of Fund expenses to income;
o current and long-term returns;
o degree to which units may be selling at a premium over par; and
o cost of maintaining a current prospectus.

FUND TERMINATION

The Fund will terminate following the stated maturity or sale of the last bond
in the portfolio. The Fund may also terminate earlier with the consent of
investors holding 51% of the units or if total assets of the Fund have fallen
below 40% of the face amount of bonds deposited. We will decide whether to
terminate the Fund early based on the same factors used in deciding whether or
not to offer units in the secondary market.

When the Fund is about to terminate you will receive a notice, and you will be
unable to sell your units after that time. On or shortly before termination, we
will sell any remaining bonds, and you will receive your final distribution. Any
bond that cannot be sold at a reasonable price may continue to be held by the
Trustee in a liquidating trust pending its final sale.

You will pay your share of the expenses associated with termination, including
brokerage costs in selling bonds. This may reduce the amount you receive as your
final distribution.

CERTIFICATES

Certificates for units are issued on request. You may transfer certificates by
complying with the requirements for redeeming certificates, described above. You
can replace lost or mutilated certificates by delivering satisfactory indemnity
and paying the associated costs.

TRUST INDENTURE

The Fund is a 'unit investment trust' governed by a Trust Indenture, a contract
among the Sponsors, the Trustee and the Evaluator, which sets forth their duties
and obligations and your rights. A copy of the Indenture is available to you on
request to the Trustee. The following summarizes certain provisions of the
Indenture.

The Sponsors and the Trustee may amend the Indenture without your consent:

20
<PAGE>
o to cure ambiguities;
o to correct or supplement any defective or inconsistent provision;
o to make any amendment required by any governmental agency; or
o to make other changes determined not to be materially adverse to your best
interest (as determined by the Sponsors).
Investors holding 51% of the units may amend the Indenture. Every investor must
consent to any amendment that changes the 51% requirement. No amendment may
reduce your interest in the Fund without your written consent.

The Trustee may resign by notifying the Sponsors. The Sponsors may remove the
Trustee without your consent if:
o it fails to perform its duties and the Sponsors determine that its
replacement is in your best interest; or
o it becomes incapable of acting or bankrupt or its affairs are taken over by
public authorities.
Investors holding 51% of the units may remove the Trustee. The Evaluator may
resign or be removed by the Sponsors and the Trustee without the consent of
investors. The resignation or removal of either becomes effective when a
successor accepts appointment. The Sponsors will try to appoint a successor
promptly; however, if no successor has accepted within 30 days after notice of
resignation, the resigning Trustee or Evaluator may petition a court to appoint
a successor.

Any Sponsor may resign as long as one Sponsor with a net worth of $2 million
remains and agrees to the resignation. The remaining Sponsors and the Trustee
may appoint a replacement. If there is only one Sponsor and it fails to perform
its duties or becomes bankrupt the Trustee may:
o remove it and appoint a replacement Sponsor;
o liquidate the Fund; or
o continue to act as Trustee without a Sponsor.

Merrill Lynch, Pierce, Fenner & Smith Incorporated acts as agent for the
Sponsors.

The Trust Indenture contains customary provisions limiting the liability of the
Trustee, the Sponsors and the Evaluator.

LEGAL OPINION

Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York 10017, as
counsel for the Sponsors, has given an opinion that the units are validly
issued. Special counsel located in the relevant states have given state and
local tax opinions.

AUDITORS

Deloitte & Touche LLP, 2 World Financial Center, New York, New York 10281,
independent accountants, audited the Statements of Condition included in this
prospectus.

SPONSORS

The Sponsors are:

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (a wholly-owned subsidiary of
Merrill Lynch & Co., Inc.)
P.O. Box 9051,
Princeton, NJ 08543-9051

SALOMON SMITH BARNEY INC. (an indirectly wholly-owned subsidiary of Citigroup
Inc.)
388 Greenwich Street--23rd Floor,
New York, NY 10013

21
<PAGE>
DEAN WITTER REYNOLDS INC. (a principal operating subsidiary of Morgan Stanley
Dean Witter & Co.)
Two World Trade Center--59th Floor,
New York, NY 10048
PRUDENTIAL SECURITIES INCORPORATED (an
indirect wholly-owned subsidiary of the
Prudential Insurance Company of America)
One New York Plaza
New York, NY 10292
PAINEWEBBER INCORPORATED (a wholly-owned subsidiary of PaineWebber Group Inc.)
1285 Avenue of the Americas,
New York, NY 10019

Each Sponsor is a Delaware corporation and it, or its predecessor, has acted as
sponsor to many unit investment trusts. As a registered broker-dealer each
Sponsor buys and sells securities (including investment company shares) for
others (including investment companies) and participates as an underwriter in
various selling groups.

TRUSTEE

The Bank of New York, 101 Barclay Street, 17 W, New York, New York 10268, is the
Trustee.

It is supervised by the Federal Deposit Insurance Corporation, the Board of
Governors of the Federal Reserve System and New York State banking authorities.

UNDERWRITERS' AND SPONSORS' PROFITS

Underwriters receive sales charges when they sell units. The Sponsors also
realized a profit or loss on the initial date of deposit of the bonds. Any cash
made available by you to the Sponsors before the settlement date for those units
may be used in the Sponsors' businesses to the extent permitted by federal law
and may benefit the Sponsors.

A Sponsor or Underwriter may realize profits or sustain losses on bonds in the
Fund which were acquired from underwriting syndicates of which it was a member.

In maintaining a secondary market, the Sponsors will also realize profits or
sustain losses in the amount of any difference between the prices at which they
buy units and the prices at which they resell or redeem them.

PUBLIC DISTRIBUTION

The Sponsors do not intend to qualify units for sale in any foreign countries.
This prospectus does not constitute an offer to sell units in any country where
units cannot lawfully be sold.

CODE OF ETHICS

Merrill Lynch, as agent for the Sponsors, has adopted a code of ethics requiring
preclearance and reporting of personal securities transactions by its employees
with access to information on portfolio transactions. The goal of the code is to
prevent fraud, deception or misconduct against the Fund and to provide
reasonable standards of conduct.

YEAR 2000 ISSUES

Many computer systems were designed in such a way that they may be unable to
distinguish between the year 2000 and the year 1900 (commonly known as the 'Year
2000 Problem'). We do not expect that the computer system changes necessary to
prepare for the Year 2000 will cause any major operational difficulties for the
Fund. The Year

22
<PAGE>
2000 Problem may adversely affect the issuers of the securities contained in the
Portfolio, but we cannot predict whether any impact will be material to the
Portfolio as a whole.

TAXES

The following summary describes some of the important income tax consequences of
holding units. It assumes that you are not a dealer, financial institution,
insurance company or other investor with special circumstances. You should
consult your own tax adviser about your particular circumstances.

At the date of issue of each bond, counsel for the issuer delivered an opinion
to the effect that interest on the bond is exempt from regular federal income
tax. However, interest may be subject to state and local taxes and federal
alternative minimum tax. Neither we nor our counsel have reviewed the issuance
of the bonds, related proceedings or the basis for the opinions of counsel for
the issuers. We cannot assure you that the issuer (or other users) have complied
or will comply with any requirements necessary for a bond to be tax-exempt. If
any of the bonds were determined not to be tax-exempt, you could be required to
pay income tax for current and prior years, and if the Fund were to sell the
bond, it might have to sell it at a substantial discount.

In the opinion of our counsel, under existing law:

GENERAL TREATMENT OF THE FUND AND YOUR INVESTMENT

The Fund will not be taxed as a corporation for federal income tax purposes, and
you will be considered to own directly your share of each bond in the Fund.

INCOME OR LOSS UPON DISPOSITION

When all or part of your share of a bond is disposed of (for example, when the
Fund sells, exchanges or redeems a bond or when you sell or exchange your
units), you will generally recognize capital gain or loss. Your gain, however,
will generally be ordinary income to the extent of any accrued 'market
discount'. Generally you will have market discount to the extent that your basis
in a bond when you purchase a unit is less than its stated redemption price at
maturity (or, if it is an original issue discount bond, the issue price
increased by original issue discount that has accrued on the bond before your
purchase). You should consult your tax adviser in this regard.

If your net long-term capital gains exceed your net short-term capital losses,
the excess may be subject to tax at a lower rate than ordinary income. Any
capital gain from the Fund will be long-term if you are considered to have held
your investment on each bond for more than one year and short-term if you held
it for one year or less. If you are an individual and sell your units after
holding them for more than one year, you may be entitled to a 20% maximum
federal tax rate on any resulting gains. Consult your tax adviser in this
regard. Because the deductibility of capital losses is subject to limitations,
you may not be able to deduct all of your capital losses.

YOUR BASIS IN THE BONDS

Your aggregate basis in the bonds will be equal to the cost of your units,
including any sales charges and the organizational expenses you

23
<PAGE>
pay, adjusted to reflect any accruals of 'original issue discount,' 'acquisition
premium' and 'bond premium'. You should consult your tax adviser in this regard.

EXPENSES

If you are not a corporate investor, you will not be entitled to a deduction for
your share of fees and expenses of the Fund. Also, if you borrowed money in
order to purchase or carry your units, you will not be able to deduct the
interest on this borrowing for federal income tax purposes. The IRS may treat
your purchase of units as made with borrowed money even if the money is not
directly traceable to the purchase of units.

STATE AND LOCAL TAXES

Under the income tax laws of the State and City of New York, the Fund will not
be taxed as a corporation. If you are a New York taxpayer, your income from the
Fund will not be tax-exempt in New York except to the extent that the income is
earned on bonds that are tax-exempt for New York purposes. Depending on where
you live, your income from the Fund may be subject to state and local taxation.
You should consult your tax adviser in this regard.

CALIFORNIA TAXES

In the opinion of O'Melveny & Myers LLP, Los Angeles, California, special
counsel on California tax matters:

Under the income tax laws of the State of California, the Trust will not be
taxed as a corporation and you will be considered to own directly your share of
each bond of the Trust. If you are a California taxpayer, your share of the
income from the bonds of the Trust will not be tax-exempt in California except
for California personal income tax purposes and only to the extent that the
income is earned on bonds that are exempt for such purposes. If you are a
California taxpayer and all or part of your share of a bond is disposed of (for
example, when a bond is sold, exchanged or redeemed at maturity or you sell or
exchange your units), you will recognize gain or loss for California tax
purposes. Depending on where you live, your income from the Trust may be subject
to state and local taxation. You should consult your tax advisor in this regard.

MARYLAND TAXES

In the opinion of Saul, Ewing, Remick & Saul LLP, Baltimore, Maryland, special
counsel on Maryland tax matters:

Under the income tax laws of the State of Maryland, the Fund will not be taxed
as a corporation and you will be considered to own directly your share of each
bond in the Fund. You will not be subject to Maryland tax on any income earned
by the Fund to the extent such income is attributable to bonds (other than
private activity bonds) issued by the State of Maryland, the Government of
Puerto Rico, or the Government of Guam or their respective political
subdivisions and authorities. When all or part of your share of a bond is
disposed of (for example, when the Fund sells, exchanges or redeems a bond or
when you sell or exchange your units), you will generally recognize capital gain
or loss except to the extent the gain is derived from the disposition of a bond
issued by the State of Maryland or its political subdivisions. Neither the bonds
in the Fund nor units held by you will be subject to Maryland personal property

24
<PAGE>
tax or Maryland sales and use tax. If you are a Maryland resident at the time of
your death, your units will be subject to Maryland inheritance and estate tax.

VIRGINIA TAXES

In the opinion of Hunton & Williams, Richmond, Virginia, special counsel on
Virginia tax matters:

Under the income tax laws of the State of Virginia, the Virginia Trust will not
be taxed as a corporation. If you are a Virginia taxpayer, your income from the
Virginia Trust will not be tax-exempt in Virginia except to the extent that the
income is attributable to either (i) interest earned on bonds that are tax-
exempt for Virginia purposes or (ii) profits from the sale of certain Virginia
bonds that have been issued under Virginia legislation specifically exempting
all income from those bonds. If, at the time of your death, you either are a
Virginia resident or, in certain cases, are not a resident of the United States,
your units may be subject to Virginia estate tax. You should consult your tax
adviser in these matters.

SUPPLEMENTAL INFORMATION

You can receive at no cost supplemental information about the Fund by calling
the Trustee. The supplemental information includes more detailed risk disclosure
about the types of bonds that may be in the Fund's portfolios, general risk
disclosure concerning any insurance securing certain bonds, and general
information about the structure and operation of the Fund. The supplemental
information is also available from the SEC.

25
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (CALIFORNIA, MARYLAND, AND VIRGINIA TRUSTS)
DEFINED ASSET FUNDS

REPORT OF INDEPENDENT ACCOUNTANTS

The Sponsors, Trustee and Holders
of Municipal Investment Trust Fund,
Multistate Series - 304 (California, Maryland, and Virginia Trusts)
Defined Asset Funds:

We have audited the accompanying statements of condition of Municipal
Investment Trust Fund, Multistate Series - 304 (California, Maryland,
and Virginia Trusts) Defined Asset Funds, including the portfolios,
as of December 31, 1998 and the related statements of operations and
of changes in net assets for the year ended December 31, 1998 and the
period February 1, 1997 to December 31, 1997. These financial
statements are the responsibility of the Trustee. Our responsibility
is to express an opinion on these financial statements based on our
audits.

We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Securities owned at December
31, 1998, as shown in such portfolios, were confirmed to us by The
Bank of New York, the Trustee. An audit also includes assessing the
accounting principles used and significant estimates made by the
Trustee, as well as evaluating the overall financial statements
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 Municipal
Investment Trust Fund, Multistate Series - 304 (California, Maryland,
and Virginia Trusts) Defined Asset Funds at December 31, 1998 and the
results of their operations and changes in their net assets for the
above-stated periods in conformity with generally accepted accounting
principles.

DELOITTE & TOUCHE LLP

New York, N.Y.
March 3, 1999

D - 1
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (CALIFORNIA TRUST),
DEFINED ASSET FUNDS

STATEMENT OF CONDITION
AS OF DECEMBER 31, 1998

<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $3,466,661)(Note 1)................... $3,743,020
Accrued interest receivable................... 58,435
Accrued interest on segregated bonds.......... 1,312
Deferred organizational cost (Note 6)......... 2,119
_____________

Total trust property.............. 3,804,886

LESS LIABILITIES:
Advance from Trustee.......................... $ 16,824
Accrued expenses.............................. 3,120
Deferred Sales Charge(Note 5)................. 16,131 36,075
_____________ _____________

NET ASSETS, REPRESENTED BY:
3,448 units of fractional undivided
interest outstanding (Note 3)............... 3,758,473
Undistributed net investment income........... 10,338
_____________
$3,768,811
=============
UNIT VALUE ($3,768,811/3,448 units)............. $1,093.04
=============

</TABLE>
See Notes to Financial Statements.

D - 2
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (CALIFORNIA TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
February 1,
1997
Year Ended to
December 31, December 31,
1998 1997
___________________________
<S> <C> <C>
INVESTMENT INCOME:
Interest income........................... $185,137 $167,860
Interest income on segregated bonds....... 5,035 5,709
Trustee's fees and expenses............... (4,752) (4,521)
Sponsors' fees............................ (551) (2,562)
Organizational expenses................... (706) (706)
___________________________
Net investment income..................... 184,163 165,780
___________________________

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain on securities
sold or redeemed........................ 5,029
Unrealized appreciation of investments.... 59,902 216,457
___________________________

Net realized and unrealized gain on
investments............................. 64,931 216,457
___________________________

NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS........................... $249,094 $382,237
===========================

</TABLE>
See Notes to Financial Statements.

D - 3
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (CALIFORNIA TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
February 1,
1997
Year Ended to
December 31, December 31,
1998 1997
__________________________
<S> <C> <C>
OPERATIONS:
Net investment income........................... $ 184,163 $ 165,780
Realized gain on securities
sold or redeemed.............................. 5,029
Unrealized appreciation of investments.......... 59,902 216,457
__________________________
Net increase in net assets resulting
from operations............................... 249,094 382,237

INCOME DISTRIBUTIONS TO HOLDERS (Note 2).......... (176,686) (152,011)

DEFERRED SALES CHARGE (Note 5).................... (48,706) (35,487)

CAPITAL SHARE TRANSACTIONS - Redemptions of 83
units........................................... (88,504)
__________________________
NET INCREASE (DECREASE) IN NET ASSETS............. (64,802) 194,739

NET ASSETS AT BEGINNING OF PERIOD................. 3,833,613 3,638,874
__________________________
NET ASSETS AT END OF PERIOD....................... $3,768,811 $3,833,613
==========================
PER UNIT:
Income distributions during period.............. $50.31 $43.05
==========================
Net asset value at end of period................ $1,093.04 $1,085.70
==========================
TRUST UNITS OUTSTANDING AT END OF PERIOD.......... 3,448 3,531
==========================

</TABLE>
See Notes to Financial Statements.

D - 4
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (CALIFORNIA TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES

The Fund is registered under the Investment Company Act of 1940 as
a Unit Investment Trust. The following is a summary of significant
accounting policies consistently followed by the Fund in the
preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.

(a) Securities are stated at value as determined by the Evaluator
based on bid side evaluations for the securities (see "How to
Sell Units - Trustee's Redemption of Units" in this Prospectus,
Part B), except that value on February 1, 1997 was based upon
offer side evaluations at January 30, 1997 the day prior to the
Date of Deposit. Cost of securities at February 1, 1997 was also
based on such offer side evaluations.

(b) The Fund is not subject to income taxes. Accordingly, no
provision for such taxes is required.

2. DISTRIBUTIONS

A distribution of net investment income is made to Holders each
month. Receipts other than interest, after deductions for
redemptions and applicable expenses, are distributed as explained
in "Income, Distributions and Reinvestment - Distributions" in this
Prospectus, Part B.

3. NET CAPITAL
<TABLE>
<S> <C>
Cost of 3,448 units at Date of Deposit.............. $3,553,338
Redemptions of units - net cost of 83 units
redeemed less redemption amounts.................. (2,804)
Realized gain on securities sold or redeemed........ 5,029
Interest income on segregated bonds................. 10,744
Deferred sales charge............................... (84,193)
Net unrealized appreciation of investments.......... 276,359
______________

Net capital applicable to Holders................... $3,758,473
==============
</TABLE>

4. INCOME TAXES

As of December 31, 1998, net unrealized appreciation of investments,
based on cost for Federal income tax purposes, aggregated $276,359 of
which $276,441 related to appreciated securities and $82 related to
depreciated securities. The cost of investment securities for Federal
income tax purposes was $3,466,661 at December 31, 1998.

D - 5
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (CALIFORNIA TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

5. DEFERRED SALES CHARGE

The sales charges are being paid for with the interest received
and by periodic sales of these bonds. A deferred sales charge
of $3.35 per unit is charged on a quarterly basis, and paid to the
sponsors annually by the Trustee on behalf of the Holders, up to an
aggregate of $40.20 per unit over the first three years of the life
of the Fund. Should a Holder redeem units prior to the third
anniversary of the Fund, the remaining balance of the deferred sales
charge will be charged.

6. DEFERRED ORGANIZATIONAL COSTS

Organizational costs will be deferred and amortized over five years.

D - 6

<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 CALIFORNIA TRUST (INSURED),
DEFINED ASSET FUNDS

PORTFOLIO
AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
Rating Optional
Portfolio No. and Title of of Face Redemption
Securities(4) Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
_____________ _________ ______ ______ _____________ _____________ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C>
1 California Statewide Cmnty. Dev. AAA $ 500,000 5.500% 2010 07/01/06 $ 500,000 $ 542,530
Auth., Cert. of Part)(Methodist @ 102.000
Hosp. of Southern California)
(Connie Lee Ins.)

2 State Pub. Wks. Bd. of the State of AAA 35,000 4.100 1999 None 35,068 35,069
California Energy Efficiency Rev.
Rfdg. Bonds Ser. 1995 B (AMBAC
Ins.)(6)

3 Los Angeles Cnty., CA, Pub. Wks. AAA 515,000 4.750 2010 12/01/03 480,247 527,206
Fin. Auth., Lease Rev. Bonds @ 102.000
(Multiple Capital Facs. Proj. IV)
(MBIA Ins.)

4 County of Sacramento, CA, Certs. of AAA 440,000 5.000 2010 02/01/07 425,700 463,826
Part., 1997 Pub. Facs. Proj. (Solid @ 102.000
Waste facs.)(MBIA Ins.)

5 Contra Costa Auth., CA, Sales Tax AAA 50,000 5.000 2000 None 51,217 51,135
Rev. Bonds (Limited Tax Bonds),
Ser. 1993 A (Financial Guaranty
Ins.)(6)

6 Department of Arpts. of the City of AAA 380,000 5.500 2010 05/15/05 384,431 406,216
Los Angeles, CA, Los Angeles Intl. @ 101.000
Arpt. Rfdg. Rev. Bonds, Ser. 1995 A
(Financial Guaranty Ins.)

7 City of Rancho Mirage JT. Pwrs. AAA 500,000 5.250 2010 07/01/07 492,880 535,215
Fin. Auth., CA, Certs. of Part., @ 102.000
Eisenhower Med. Ctr., Ser. 1997 A
(MBIA Ins.)

</TABLE>
D - 7

<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 CALIFORNIA TRUST (INSURED),
DEFINED ASSET FUNDS

PORTFOLIO
AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
Rating Optional
Portfolio No. and Title of of Face Redemption
Securities(4) Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
_____________ _________ ______ ______ _____________ _____________ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C>
8 Community Facs. Dist. No. 1 of the AAA $ 520,000 5.800% 2010 09/01/06 $ 537,711 $ 581,474
North City West, CA, Sch. Facs. @ 102.000
Fin. Auth. Spec. Tax Rfdg. Bonds,
Ser. 1995 B (FSA Ins.)

9 San Bernardino JT. Pwrs. Fin. AAA 555,000 5.500 2010 10/01/05 559,407 600,349
Auth., CA, Tax Alloc Rfdg. Bonds, @ 102.000
Ser. 1995 (FSA Ins.)

______________ ______________ _____________
TOTAL $3,495,000 $3,466,661 $3,743,020
============== ============== =============

</TABLE>
See Notes to Portfolios on Pages D - 22 and D - 23.

D - 8
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (MARYLAND TRUST),
DEFINED ASSET FUNDS

STATEMENT OF CONDITION
AS OF DECEMBER 31, 1998

<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $2,998,948)(Note 1)................... $3,190,830
Accrued interest receivable................... 73,622
Accrued interest on segregated bonds.......... 780
Deferred organizational cost (Note 6)......... 1,969
_____________

Total trust property.............. 3,267,201

LESS LIABILITIES:
Advance from Trustee.......................... $ 33,869
Accrued expenses.............................. 2,954
Deferred sales charge (Note 5)................ 16,459 53,282
_____________ _____________

NET ASSETS, REPRESENTED BY:
3,017 units of fractional undivided
interest outstanding (Note 3)............... 3,203,657
Undistributed net investment income........... 10,262
_____________
$3,213,919
=============
UNIT VALUE ($3,213,919/3,017 units)............. $1,065.27
=============

</TABLE>
See Notes to Financial Statements.

D - 9
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (MARYLAND TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
February 1,
1997
Year Ended to
December 31, December 31,
1998 1997
___________________________
<S> <C> <C>
INVESTMENT INCOME:
Interest income........................... $172,028 $165,742
Interest income on segregated bonds....... 5,654 6,681
Trustee's fees and expenses............... (4,437) (5,350)
Sponsors' fees............................ (1,492) (1,388)
Organizational expenses................... (656) (656)
___________________________
Net investment income..................... 171,097 165,029
___________________________

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain on securities
sold or redeemed........................ 9,166
Unrealized appreciation of investments.... 26,357 165,525
___________________________

Net realized and unrealized gain on
investments............................. 35,523 165,525
___________________________

NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS........................... $206,620 $330,554
===========================

</TABLE>
See Notes to Financial Statements.

D - 10
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (MARYLAND TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
February 1,
1997
Year Ended to
December 31, December 31,
1998 1997
__________________________
<S> <C> <C>
OPERATIONS:
Net investment income........................... $ 171,097 $ 165,029
Realized gain on securities
sold or redeemed.............................. 9,166
Unrealized appreciation of investments.......... 26,357 165,525
__________________________
Net increase in net assets resulting
from operations............................... 206,620 330,554

INCOME DISTRIBUTIONS TO HOLDERS (Note 2).......... (164,222) (148,696)

DEFERRED SALES CHARGE (Note 5).................... (54,165) (36,911)

CAPITAL SHARE TRANSACTIONS - Redemptions of 264
units .......................................... (274,305)
__________________________
NET INCREASE (DECREASE) IN NET ASSETS............. (286,072) 144,947

NET ASSETS AT BEGINNING OF PERIOD................. 3,499,991 3,355,044
__________________________
NET ASSETS AT END OF PERIOD....................... $3,213,919 $3,499,991
==========================
PER UNIT:
Income distributions during period.............. $52.81 $45.32
==========================
Net asset value at end of period................ $1,065.27 $1,066.75
==========================
TRUST UNITS OUTSTANDING AT END OF PERIOD.......... 3,017 3,281
==========================

</TABLE>
See Notes to Financial Statements.

D - 11
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (MARYLAND TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES

(b) The Fund is not subject to income taxes. Accordingly, no
provision for such taxes is required.

2. DISTRIBUTIONS

3. NET CAPITAL
<TABLE>
<S> <C>
Cost of 3,017 units at Date of Deposit.............. $3,085,086
Redemptions of units - net cost of 264 units
redeemed less redemption amounts.................. (3,736)
Realized gain on securities sold or redeemed........ 9,166
Interest income on segregated bonds................. 12,335
Deferred sales charge............................... (91,076)
Net unrealized appreciation of investments.......... 191,882

Net capital applicable to Holders................... $3,203,657
==============
</TABLE>

4. INCOME TAXES

As of December 31, 1998, net unrealized appreciation of investments,
based on cost for Federal income tax purposes, aggregated $191,882
of which $193,122 related to appreciated securities and $1240 related to
depreciated securities. The cost of investment securities for Federal
income tax purposes was $2,998,948 at December 31, 1998.

D - 12
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (MARYLAND TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

5. DEFERRED SALES CHARGE

The sales charges are being paid for with the interest received
and by periodic sales of these bonds. A deferred sales charge
of $ 3.75 per unit is charged on a quarterly basis, and paid to the
sponsors annually by the Trustee on behalf of the Holders, up to an
aggregate of $ 45.00 per unit over the first three years of the life
of the Fund. Should a Holder redeem units prior to the third
anniversary of the Fund, the remaining balance of the deferred sales
charge will be charged.

6. DEFERRED ORGANIZATIONAL COSTS

Organizational costs will be deferred and amortized over five years.

D - 13
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304
DEFINED ASSET FUNDS

PORTFOLIO OF THE MARYLAND TRUST
AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
Rating Optional
Portfolio No. and Title of of Face Redemption
Securities Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
__________ _________ ______ ______ _____________ _____________ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C>
1 State of Maryland G.0. Bonds, State AAA $ 35,000 5.900% 1999 None $ 36,449 $ 35,209
and Local Facs. Loan of 1991, First
Ser. (6)

2 Community Dev. Admin., Dept of Hsg. Aa2(m) 400,000 5.875 2016 01/01/07 402,532 426,308
and Cmnty. Dev., MD, Hsg. Rev. @ 102.000
Bonds, Ser. 1996 A

3 Maryland Health and Higher AAA 410,000 5.375 2026 10/01/06 396,691 425,887
Educational Facilities Authority, @ 102.000
Revenue Bonds, Loyola College Issue
Ser. 1996 A (MBIA Ins.)(5)

4 Maryland Stadium Authority, Sports AAA 450,000 5.800 2026 03/01/06 453,389 481,658
Facilities Revenue Bonds, Ser. 1996 @ 101.000
(AMBAC Indemnity Ins.) (5)

5 Housing Opportunities Comm. of Aa2(m) 500,000 5.900 2017 07/01/06 504,100 531,760
Montgomery Cnty., MD, Single Family @ 102.000
Mtge. Rev. Bonds, Ser. 1996 D

6 Prince George's Cnty., MD, Proj. A(m) 500,000 5.300 2024 07/01/04 462,635 491,085
and Rfdg. Rev. Bonds (Dimensions @ 101.00
Hlth. Corp Iss.), Ser. 1994

7 Washington Suburban Sanitary Dist., Aa1(m) 50,000 4.125 2000 None 49,805 50,590
MD (Montgomery and Prince George's
Cntys., Maryland), Sewage Disp.
Rfdg. Bonds of 1997 (6)

8 City of Baltimore, Maryland (Mayor AAA 410,000 5.500 2026 07/01/06 401,206 430,508
and City Council of Baltimore) @ 101.000
Project and Refunding Revenue Bonds
(Wastewater Projects) Ser. 1996 A
Financial Guaranty Ins.)(5)

</TABLE>
D - 14

<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304
DEFINED ASSET FUNDS

PORTFOLIO OF THE MARYLAND TRUST
AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
Rating Optional
Portfolio No. and Title of of Face Redemption
Securities Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
__________ _________ ______ ______ _____________ _____________ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C>
9 Puerto Rico Hwy. and Trans. Auth., A $ 305,000 5.500% 2026 07/01/06 $ 292,141 $ 317,825
Hwy. Rev. Bonds, 1996 Ser. Y @ 101.500
______________ ______________ ______________
TOTAL $3,060,000 $2,998,948 $3,190,830
============== ============== ==============

</TABLE>
See Notes to Portfolios on Pages D-22 and D-23.
D - 15

<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (VIRGINIA TRUST),
DEFINED ASSET FUNDS

STATEMENT OF CONDITION
AS OF DECEMBER 31, 1998

<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $3,212,411)(Note 1)................... $3,438,214
Accrued interest receivable................... 63,968
Accrued interest on segregated bonds.......... 1,091
Deferred organizational cost (Note 6)......... 1,968
_____________

Total trust property.............. 3,505,241

LESS LIABILITIES:
Advance from Trustee.......................... $ 21,578
Accrued expenses.............................. 3,017
Deferred sales charge (Note 5)................ 19,052 43,647
_____________ ____________

NET ASSETS, REPRESENTED BY:
3,242 units of fractional undivided
interest outstanding (Note 3)............... 3,449,905
Undistributed net investment income........... 11,689
_____________
$3,461,594
=============
UNIT VALUE ($3,461,594/3,242 units)............. $1,067.73
=============

</TABLE>
See Notes to Financial Statements.

D - 16
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (VIRGINIA TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
February 1,
1997
Year Ended to
December 31, December 31,
1998 1997
___________________________
<S> <C> <C>
INVESTMENT INCOME:
Interest income........................... $179,109 $164,035
Interest income on segregated bonds....... 5,807 6,825
Trustee's fees and expenses............... (4,597) (4,336)
Sponsors' fees............................ (1,511) (1,388)
Organizational expenses................... (656) (656)
___________________________
Net investment income..................... 178,152 164,480
___________________________

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain on securities sold
or redeemed............................. 1
Unrealized appreciation of investments.... 48,498 177,305
___________________________

Net realized and unrealized gain on
investments............................. 48,499 177,305
___________________________

NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS........................... $226,651 $341,785
===========================

</TABLE>
See Notes to Financial Statements.

D - 17
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (VIRGINIA TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
February 1,
1997
Year Ended to
December 31, December 31,
1998 1997
__________________________
<S> <C> <C>
OPERATIONS:
Net investment income........................... $ 178,152 $ 164,480
Realized gain on securities sold
or redeemed................................... 1
Unrealized appreciation of investments.......... 48,498 177,305
__________________________
Net increase in net assets resulting
from operations............................... 226,651 341,785

INCOME DISTRIBUTIONS TO HOLDERS (Note 2).......... (170,931) (147,307)

DEFERRED SALES CHARGE (Note 5).................... (49,913) (36,900)

CAPITAL SHARE TRANSACTIONS - Redemptions of 38
units........................................... (39,181)
__________________________
NET INCREASE (DECREASE) IN NET ASSETS............. (33,374) 157,578

NET ASSETS AT BEGINNING OF PERIOD................. 3,494,968 3,337,390
__________________________
NET ASSETS AT END OF PERIOD....................... $3,461,594 $3,494,968
==========================
PER UNIT:
Income distributions during period.............. $52.52 $44.91
==========================
Net asset value at end of period................ $1,067.73 $1,065.54
==========================
TRUST UNITS OUTSTANDING AT END OF PERIOD.......... 3,242 3,280
==========================

</TABLE>
See Notes to Financial Statements.

D - 18
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (VIRGINIA TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES

(b) The Fund is not subject to income taxes. Accordingly, no
provision for such taxes is required.

2. DISTRIBUTIONS

3. NET CAPITAL
<TABLE>
<S> <C>
Cost of 3,242 units at Date of Deposit.............. $3,298,725
Redemptions of units - net cost of 38 units
redeemed less redemption amounts.................. (443)
Realized gain on securities sold or redeemed........ 1
Interest income on segregated bonds................. 12,632
Deferred sales charge............................... (86,813)
Net unrealized appreciation of investments.......... 225,803
______________

Net capital applicable to Holders................... $3,449,905
==============
</TABLE>

4. INCOME TAXES

As of December 31, 1998, net unrealized appreciation of investments,
based on cost for Federal income tax purposes, aggregated $225,803
of which $226,522 related to appreciated securities and $719
related to depreciated securities. The cost of investment securities
for Federal income tax purposes was $3,212,411 at December 31, 1998.

D - 19
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (VIRGINIA TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

5. DEFERRED SALES CHARGE

The sales charges are being paid for with the interest received
and by periodic sales of these bonds. A deferred sales charge
of $3.75 per unit is charged on a quarterly basis, and paid to the
sponsors annually by the Trustee on behalf of the Holders, up to an
aggregate of $45.00 per unit over the first three years of the life
of the Fund. Should a Holder redeem units prior to the third
anniversary of the Fund, the remaining balance of the deferred sales
charge will be charged.

6. DEFERRED ORGANIZATIONAL COST

Organizational costs will be deferred and amortized over five years.

D - 20
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304
DEFINED ASSET FUNDS

PORTFOLIO OF THE VIRGINIA TRUST
AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
Rating Optional
Portfolio No. and Title of of Face Redemption
Securities Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
__________ _________ ______ ______ _____________ _____________ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C>
1 Virginia Hsg. Dev. Auth., AA+ $ 500,000 6.000% 2017 07/01/06 $ 504,080 $ 532,000
Commonwealth Mtge. Bonds, 1996 C @ 102.000
Subseries C-3

2 Industrial Development Authority of AAA 500,000 5.500 2025 08/15/05 386,044 519,435
the County of Hanover, VA (Bon @ 102.000
Secours Health System Project),
Ser. 1995 (MBIA Ins.)(5)

3 Hampton Roads, Regl. Jail Auth., AAA 460,000 5.500 2024 07/01/06 442,870 482,545
VA, Regl. Jail Fac. Rev. Bonds, @ 102.000
Ser. 1996 A (MBIA Ins.)(5)

4 Industrial Dev. Auth. of the City AA 400,000 5.375 2015 11/01/07 489,580 518,205
of Hampton, VA, Hosp. Facs. Rev. @ 101.000
Rfdg. Bonds (Sentara Hlth. Sys.
Obligated Grp.), Ser. 1997 A

5 Fairfax County Economic Development AA 500,000 5.500 2018 05/15/04 484,715 519,160
Authority, VA, Lease Revenue Bonds, @ 102.000
(Gov't Ctr. Prop.) Ser. 1994

6 Puerto Rico Hwy. and Trans. Auth. A 350,000 5.500 2026 07/01/06 335,244 364,718
Hwy. Rev. Bonds, Ser. Y @ 101.500

7 County of Hanover, VA, G.O. Pub. Aa1(m) 25,000 5.125 2000 None 25,777 25,674
Imp. Bonds, Ser. 1997 (6)

8 County of Hampton, VA, Hosp. Facs. AA 60,000 5.000 1999 None 61,546 60,929
Rev. Rfdg. Bonds (Sentara Hlth.
Sys. Oblig. Grp.) Ser. 1997 A (6)

</TABLE>
D - 21

<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304
DEFINED ASSET FUNDS

PORTFOLIO OF THE VIRGINIA TRUST
AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
Rating Optional
Portfolio No. and Title of of Face Redemption
Securities Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
__________ _________ ______ ______ _____________ _____________ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C>
9 Industial Development Authority AAA $ 400,000 5.500% 2025 08/15/05 $ 482,555 $ 415,548
of the County Hanover, Virginia @ 102.000
Memorial Regional Medical Center
Project at Hanover Med. Park),
Ser. 1995 (MBIA Ins.)(5)

______________ ______________ ______________
TOTAL $3,295,000 $3,212,411 $3,438,214
============== ============== ==============

</TABLE>
See Notes to Portfolios on Pages D - 23 and D - 24.

D - 22

<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (CALIFORNIA, MARYLAND AND VIRGINIA TRUSTS)
DEFINED ASSET FUNDS

NOTES TO PORTFOLIOS
AS OF DECEMBER 31, 1998

(1) The ratings of the bonds are by Standard & Poor's Ratings
Group, or by Moody's Investors Service, Inc. if followed by
"(m)", or by Fitch Investors Service, Inc. if followed by
"(f)"; "NR" indicates that this bond is not currently rated by
any of the above-mentioned rating services. These ratings have
been furnished by the Evaluator but not confirmed with
the rating agencies. A description of the rating symbols and
their meanings appears under "Descriptions of Ratings" in this
Prospectus, Part B.

(2) See Notes to Financial Statements.

(3) Optional redemption provisions, which may be exercised in whole
or in part, are initially at prices of par plus a premium, then
subsequently at prices declining to par. Certain securities may
provide for redemption at par prior or in addition to any
optional or mandatory redemption dates or maturity, for
example, through the operation of a maintenance and replacement
fund, if proceeds are not able to be used as contemplated, the
project is condemned or sold or the project is destroyed and
insurance proceeds are used to redeem the securities. Many of
the securities are also subject to mandatory sinking fund
redemption commencing on dates which may be prior to the date
on which securities may be optionally redeemed. Sinking fund
redemptions are at par and redeem only part of the issue. Some
of the securities have mandatory sinking funds which contain
optional provisions permitting the issuer to increase the
principal amount of securities called on a mandatory redemption
date. The sinking fund redemptions with optional provisions
may, and optional refunding redemptions generally will, occur
at times when the redeemed securities have an offering side
evaluation which represents a premium over par. To the extent
that the securities were acquired at a price higher than the
redemption price, this will represent a loss of capital when
compared with the Public Offering Price of the Units when
acquired. Distributions will generally be reduced by the amount
of the income which would otherwise have been paid with respect
to redeemed securities and there will be distributed to Holders
any principal amount and premium received on such redemption
after satisfying any redemption requests for Units received by
the Fund. The estimated current return may be affected by
redemptions. The tax effect on Holders of redemptions and
related distributions is described under "Taxes" in this
Prospectus, Part B.

(4) All Securities are insured either on an individual basis or by
portfolio insurance, by a municipal bond insurance company
which has been assigned "AAA" claims paying ability by
Standard & Poor's. Accordingly, Standard & Poor's has assigned
"AAA" ratings to the Securities. Securities covered by
portfolio insurance are rated "AAA" only as long as they
remain in this Trust. See "Risk Factors - Bonds Backed by
Letters of Credit or Insurance" in this Prospectus, Part B.

(5) Insured by the indicated municipal bond insurance company. See
"Risk Factors - Bonds Backed by Letters of Credit or
Insurance" in this Prospectus, Part B.

D - 23
<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 304 (CALIFORNIA, MARYLAND AND VIRGINIA TRUSTS)
DEFINED ASSET FUNDS

NOTES TO PORTFOLIOS
AS OF DECEMBER 31, 1998

(6) It is anticipated that interest and principal received from
these bonds will be applied to the payment of the Trust's
deferred sales charges.

D - 24

<PAGE>
Defined
Asset FundsSM

HAVE QUESTIONS ? MUNICIPAL INVESTMENT TRUST FUND
Request the most MULTISTATE SERIES--304
recent free Information (A Unit Investment Trust)
Supplement that gives more ---------------------------------------
details about the Fund, This Prospectus does not contain
by calling: complete information about the
The Bank of New York investment company filed with the
1-800-221-7771 Securities and Exchange Commission in
Washington, D.C. under the:
o Securities Act of 1933 (file no.
333-13435) and
o Investment Company Act of 1940 (file
no. 811-1777).
TO OBTAIN COPIES AT PRESCRIBED RATES--
WRITE: Public Reference Section of the
Commission
450 Fifth Street, N.W., Washington,
D.C. 20549-6009
CALL: 1-800-SEC-0330.
VISIT: http://www.sec.gov.
---------------------------------------
No person is authorized to give any
information or representations about
this Fund not contained in this
Prospectus or the Information
Supplement, and you should not rely on
any other information.
---------------------------------------
When units of this Fund are no longer
available, this Prospectus may be used
as a preliminary prospectus for a
future series, but some of the
information in this Prospectus will be
changed for that series.
Units of any future series may not be
sold nor may offers to buy be accepted
until that series has become effective
with the Securities and Exchange
Commission. No units can be sold in any
State where a sale would be illegal.

11520--3/99