ITEM 77L Change in Accounting Principles and Practices

As required, effective January 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide for Investment
Companies and began amortizing and accreting all premiums and discounts
on debt securities as required for adherence to generally accepted
accounting principles.  The financial statements and notes to financial
statements have been adjusted accordingly for Federated Municipal
Securities Fund, which were materially impacted by this change.