SUB-ITEM 77 Q1 (A)



AMENDMENT #17
TO THE BY-LAWS
OF
FEDERATED MUNICIPAL SECURITIES FUND, INC.
Effective August 18, 2005
Delete, ARTICLE IX, INDEMNIFICATION in its entirety
and replace with the following:
ARTICLE IX
INDEMNIFICATION

	Section 1.  INDEMNIFICATION OF DIRECTORS AND
OFFICERS.  The Corporation shall indemnify its directors
to the fullest extent that indemnification of directors
is permitted by the Maryland General Corporation Law.  The
Corporation shall indemnify its officers to the same extent
as its directors and to such further extent as is
consistent with law.  The Corporation shall indemnify
its directors and officers who while serving as directors
or officers also serve at the request of the Corporation
as a director, officer, partner, trustee, employee, agent
or fiduciary of another corporation, partnership joint
venture, trust, other enterprise or employee benefit plan
to the fullest extent consistent with law.  The
indemnification and other rights provided by this Article
shall continue as to a person who has ceased to be a
director or officer and shall inure to the benefit of the
heirs, executors and administrators of such a person.
This Article shall not protect any such person against
any liability to the Corporation or any Shareholder thereof
to which such person would otherwise be subject by reason of
(i) willful misfeasance, (ii) bad faith, (iii) gross
negligence or (iv) reckless disregard of the duties involved
in the conduct of his office ("disabling conduct").

	Section 2.  ACTION BY DIRECTOR AGAINST THE CORPORATION.
With respect to any action, suit or other proceeding
voluntarily prosecuted by any indemnitee as plaintiff,
indemnification shall be mandatory only if the prosecution
of such action, suit or other proceeding by such indemnitee
(i) was authorized by a majority of the Directors or
(ii) was instituted by the indemnitee to enforce his rights
to indemnification hereunder in a case in which the indemnitee
is found to be entitled to such indemnification.

	Section 3.  SURVIVAL.  The rights to indemnification
set forth herein shall continue as to a person who has ceased
to be a Director or officer of the Corporation and shall inure
to the benefit of his heirs, executors and personal and legal
representatives.

	Section 4.  AMENDMENTS. References in this Article are
to the Maryland General Corporation Law and to the Investment
Company Act of 1940, as from time to time amended.  No amendment
or restatement of these by-laws or repeal of any of its provisions
shall limit or eliminate any of the benefits provided to any
person who at any time is or was a Director or officer of the
Corporation or otherwise entitled to indemnification hereunder
in respect of any act or omission that occurred prior to such
amendment, restatement or repeal.

	Section 5.  PROCEDURE.  Notwithstanding the foregoing,
no indemnification shall be made hereunder unless there has been
a determination (i) by a final decision on the merits by a court
or other body of competent jurisdiction before whom the issue of
entitlement to indemnification hereunder was brought that such
indemnitee is entitled to indemnification hereunder or, (ii) in
the absence of such a decision, by (1) a majority vote of a quorum
of those Directors who are neither "interested persons" of the
Corporation (as defined in Section 2(a)(19) of the 1940 Act) nor
parties to the proceeding ("Disinterested Non-Party Directors"),
that the indemnitee is entitled to indemnification hereunder, or
(2) if such quorum is not obtainable (or even if obtainable, if
such majority so directs) independent legal counsel in a written
opinion concludes, based on a review of readily available facts
(as opposed to a full trial-type inquiry) that the indemnitee
should be entitled to indemnification hereunder.  All
determinations to make advance payments in connection with the
expense of defending any proceeding shall be authorized and made
in accordance with the immediately succeeding paragraph (f) below.

	Section 6.  ADVANCES.  Any current or former director or
officer of the Corporation seeking indemnification within the
scope of this Article shall be entitled to advances from the
Corporation for payment of the reasonable expenses incurred by
him in connection with the matter as to which he is seeking
indemnification in the manner and to fullest extent permissible
under the Maryland General Corporation Law.  The person seeking
indemnification shall provide to the Corporation a written
affirmation of his good faith belief that the standard of
conduct necessary for indemnification by the Corporation has
been met and a written undertaking to repay any such advance
if it should ultimately be determined that the standard of
conduct has not been met.  In addition, at least one of the
following additional conditions shall be met:  (a) the person
seeking indemnification shall provide a security in form and
amount acceptable to the Corporation for his undertaking;
(b) the Corporation is insured against losses arising by reason
of the advance, or (c) a majority of a quorum of Disinterested
Non-Party Directors, or independent legal counsel, in a written
opinion, shall be determined, based on a review of facts readily
available to the Corporation at the time the advance is proposed
to be made, that there is reason to believe that the person
seeking indemnification will ultimately be found to be entitled
to indemnification.

Section 7.  OTHER RIGHTS.  The rights accruing to any indemnitee
under these provisions shall not exclude any other right which
any person may have or hereafter acquire under the Articles of
Incorporation or the by-laws of the Corporation, by contract or
otherwise under law, by a vote of stockholders or Directors who
are "disinterested persons" (as defined in Section 2(a)(19)
of the 1940 Act) or any other right to which he may be lawfully
entitled.
Section 8.  INDEMNIFICATION OF EMPLOYEES AND AGENTS.  Subject
to any limitations provided by the Investment Company Act of
1940 Act or otherwise under the Articles of Incorporation or
the by-laws of the Corporation, contract or otherwise under law,
the Corporation shall have the power and authority to indemnify
and provide for the advance payment of expenses to employees,
agents and other persons providing services to the Corporation
or serving in any capacity at the request of the Corporation to
the full extent permitted by applicable law, provided that such
indemnification has been approved by a majority of the Directors.