EX-99.77E LEGAL

SUBITEM 77E  LEGAL
 PROCEEDINGS

Since October 2003
 Federated and related
entities collectively
Federated and various
Federated funds Funds
 have
been named as defendants
 in several class action
 lawsuits now pending in
 the United States
District Court for the
District of Maryland The
 lawsuits were purportedly
 filed on behalf of people
 who purchased owned andor
redeemed shares of Federated
sponsored mutual funds
 during specified periods
 beginning November 1 1998
The
suits are generally similar
 in alleging that Federated
 engaged in illegal and
improper trading practices
 including
market timing and late
trading in concert with
 certain institutional
 traders which allegedly
 caused financial injury
to the mutual fund
shareholders These lawsuits
 began to be filed shortly
 after Federateds first
 public
announcement that it
 had received requests
 for information on
shareholder trading
activities in the Funds
from
the SEC the Office of
the New York State Attorney
 General NYAG and other
 authorities In that
 regard on
November 28 2005 Federated
announced that it had
reached final settlements
 with the SEC and the
 NYAG with
respect to those matters
Specifically the SEC and
 NYAG settled proceedings
 against three Federated
subsidiaries
involving undisclosed
 market timing arrangements
and late trading The SEC
 made findings that
Federated
Investment Management
Company FIMC an SEC
 registered investment
adviser to various Funds
 and Federated
Securities Corp an SEC
 registered broker dealer
 and distributor for the
Funds violated provisions
 of the
Investment Advisers Act
 and Investment Company
Act by approving but not
disclosing three market
 timing
arrangements or the
associated conflict
of interest between
 FIMC and the funds
involved in the arrangements
either to other fund
 shareholders or to
the funds board and
that Federated Shareholder
 Services Company
formerly an SEC registered
transfer agent failed to
 prevent a customer and
a Federated employee from
late
trading in violation of
provisions of the Investment
 Company Act The NYAG found
 that such conduct violated
provisions of New York State
law Federated entered into
the settlements without
admitting or denying the
regulators findings As
Federated previously
reported in 2004 it
has already paid
approximately 80 million
 to
certain funds as determined
 by an independent consultant
As part of these settlements
 Federated agreed to pay
disgorgement and a civil
money penalty in the
aggregate amount of an
 additional 72 million
 and among other
things agreed that it
would not serve as
investment adviser to
any registered investment
 company unless i at least
75 of the funds directors
 are independent of
 Federated ii the
chairman of each such
 fund is independent of
Federated iii no action
 may be taken by the
 funds board or any
 committee thereof unless
 approved by a majority of
the independent trustees
 of the fund or committee
 respectively and iv the
fund appoints a senior
officer who
reports to the independent
 trustees and is
responsible for monitoring
 compliance by the fund
with applicable laws
and fiduciary duties and
 for managing the process
 by which management fees
charged to a fund are
 approved The
settlements are described
in Federateds announcement
which along with previous
 press releases and related
communications on those matters
 is available in the About
 Us section of Federateds
 website at
FederatedInvestorscom
Federated and various
 Funds have also been
named as defendants in
several additional
lawsuits the majority of
which are now pending in
 the United States District
 Court for the Western
 District of Pennsylvania
alleging
among other things excessive
 advisory and Rule 12b1 fees
The board of the Funds has
 retained the law firm of
Dickstein Shapiro LLP to
 represent the Funds in
these
lawsuits Federated and
 the Funds and their
respective counsel are
reviewing the allegations
 and intend to defend
this litigation Additional
 lawsuits based upon similar
 allegations may be filed
in the future The potential
 impact of
these lawsuits all of which
 seek unquantified damages
 attorneys fees and expenses
 and future potential similar
suits is uncertain Although
we do not believe that these
 lawsuits will have a
 material adverse effect
on the Funds
there can be no assurance
 that these suits ongoing
adverse publicity and or
other developments
 resulting from the
regulatory investigations
 will not result in
increased Fund redemptions
 reduced sales of Fund
 shares or other
adverse consequences
 for the Funds

EX-99.77M MERGERS

SUBITEM 77M  Mergers

Pursuant to the Securities
 Act of 1933 as amended
and the General Rules and
Regulations
thereunder a Registration
Statement on Form N14
 SEC File No 333 143413
was filed on May
31 2007  This filing
relates to an Agreement
and Plan of Reorganization
 whereby Federated
Municipal Securities Fund
IncSurviving Fund acquired
all of the assets of
 Federated Vermont
Municipal Income Fund
Acquired Fund a portfolio
 of Federated Municipal
Securities Income
Trust in exchange for
 shares of the Surviving
 Fund Shares of the
Surviving Fund were
distributed on a pro
 rata basis to the
shareholders of the
Acquired Fund in complete
liquidation and termination
 of the Acquired Fund
 As a result effective
August 17 2007 each
shareholder of the
Acquired Fund became
the owner of Surviving
 Fund shares having a
 total
net asset value equal
to the total net asset
 value of his or her
 holdings in the Acquired
 Fund

The Agreement and Plan
 of Reorganization providing
 for the transfer of
the assets of the
Acquired Fund to the
Surviving Fund was
 approved by the Board
of Trustees at their
 Regular
Meeting held in May
2007 and was also
approved by Acquired
 Fund shareholders at
 a Special
Meeting held on August
 17 2007

The Agreement and Plan
 of Reorganization for
 this merger is hereby
 incorporated by reference
from the definitive
Prospectus Proxy Statement
 filed with the SEC on
July 16 2007

EX-99.77I NEW SECUR

SUBITEM 77Ib  Terms of new
or amended securities
Attached is the Class F Shares
 Exhibit to the Multiple Class
Plan of Federated
Municipal Securities Fund Inc
  The information contained in
the attached
Exhibit serves as the
description of Class F Shares
 as required by this Item

CLASS F SHARES EXHIBIT
TO
MULTIPLE CLASS PLAN
1	SEPARATE ARRANGEMENT
 AND EXPENSE ALLOCATION
For purposes of Rule 18f3 under
 the Act the basic distribution
 and shareholder servicing
arrangement for
the Class F Shares will consist
 of sales by financial
 intermediaries in consideration
 of the payment of the
sales load dealer reallowance
Financial intermediaries may
 also provide shareholder
 services and may
receive shareholder service fees
 therefor Additionally the
 principal underwriter may pay
up to 100 basis
points 100 of the public
offering price to financial
 intermediaries as an advance
commission on sales  In
consideration of advancing this
 payment the principal
underwriter will receive any
contingent deferred
sales charges paid upon
redemption of Class F Shares
 and distribution service
fees under the 12b1 Plan on
an ongoing basis  In connection
with this basic arrangement
Class F Shares will bear the
following fees
and expenses
Fees and Expenses
Maximum Amount Allocated
Class F Shares
Sales Load	Up to 100
basis points 100 of the
public offering price
Contingent Deferred
Sales Charge CDSC
Up to 100 basis points 100
 of the share price at the
 time of original
purchase or redemption
whichever is lower
Shareholder Service Fee	Up
 to 25 basis points 025 of
the average daily net asset value
12b1 Fee	As set forth
 in the attached Schedule
Other Expenses	Itemized
 expenses incurred by the Fund
 with respect to holders of Class
F Shares as described in
Section 3 of the Plan

2	CONVERSION AND EXCHANGE
 PRIVILEGES
For purposes of Rule 18f3
Class F Shares have the
following
 conversion rights and exchange
 privileges at
the election of the shareholder
Conversion Rights	None
Exchange Privileges	Class
F Shares may be exchanged for
Class F Shares of any other Fund

In any exchange the shareholder
shall receive shares having the
 same aggregate net asset value
 as the
shares surrendered  Exchanges
 to any other Class shall be
treated as a redemption and
purchase


3	EXCEPTIONS TO BASIC
 ARRANGEMENTS
For purposes of Rules 22d1
and 6c10 under the Act unless
 otherwise specified on the
 Schedule to this
Exhibit the scheduled variations
 in sales load and contingent
deferred sales charges are as
 follows
	A	BASIC SALES
LOAD SCHEDULE

Purchase Amount
Sales Charge as Percentage
of Offering Price
Sales Charge as a
Percentage of NAV
Less than 1 million
100
101
1 million or greater
000
000
	Applies to all Funds
 indicated on the attached
Schedule except Federated
Limited Term
Municipal Fund which has no
 initial sales load
	B	CDSC SCHEDULE
Unless otherwise indicated
below the Schedule of
Contingent Deferred Sales
Charges for each Fund
is as follows

Purchase Amount

Shares Held
Contingent Deferred Sales
Charge
Under 2 million
4 years or less
100
2 million but less than 5 million
2 years or less
050
 5 million or greater
1 year or less
025

C	REDUCING OR
 ELIMINATING THE SALES LOAD
Contingent upon notification
 to the Funds principal
 underwriter or transfer agent
 in applying the
exceptions set forth in this
 Section 3 the purchase amount
 shall take into account
Discounts achieved by combining
 concurrent purchases of andor
 current investment in
Class A Class B Class C Class
 F and Class K Shares made or
held by or on behalf of the
investor the investors spouse
 and the investors children
 under age 21 regardless of
whether the purchases or
 investments are made or held
 directly or through an investment
professional or through a
singleparticipant retirement
account provided that such
purchases and investments can be
linked using tax identification
numbers TINs social
security numbers SSNs or Broker
 Identification Numbers BINs and
Letters of intent to purchase a
certain amount of Class F Shares
within a thirteen month
period
 D	WAIVER OF SALES LOAD
Contingent upon notification to
 the Funds principal underwriter
 or transfer agent no sales load
will be
assessed on purchases of Class F
Shares made
within 120 days of redeeming
Shares of an equal or greater
 amount
through a financial intermediary
 that did not receive a dealer
 reallowance on the purchase
by shareholders who originally
 became shareholders of a Fund
 pursuant to the terms of an
agreement and plan of reorganization
 which permits the shareholders to
acquire shares at net asset
value
with reinvested dividends or capital
gains
by Directors Trustees employees
former employees and sales
representatives of the Fund the
Adviser the principal underwriter
 and their affiliates employees
of any investment professional
that sells shares according to a
sales agreement with the principal
underwriter by the immediate
family members of the above persons
 and by trusts pension or
profitsharing plans for the above
persons and
pursuant to the exchange privilege
	 E	WAIVER OF CDSC
	Contingent upon notification
 to the Funds principal underwriter
or transfer agent no CDSC
will be imposed on redemptions
 Class F Shares of Federated Capital
 Income Fund Only as a shareholder
 who owned
Shares on September 30 1989
following the death of the last
surviving shareholder or
 postpurchase disability as
defined
in Section 72m 7 of the
Internal Revenue Code of 1986
representing minimum required
distributions from an Individual
Retirement Account or
other retirement plan to a
shareholder who has attained
 the age of 70 12
of Shares purchased within 120
days of a previous redemption
of an equal or lesser
amount
of Shares held by Directors
 Trustees employees former
 employees and sales representatives
 of
the Fund the Adviser the principal
 underwriter and their affiliates
 employees of any investment
professional that sells Shares
according to a sales agreement
 with the principal underwriter
by the
immediate family members of
 the
above persons and by trusts
 pension or profitsharing
plans for
the above persons
of Shares purchased through a
 financial intermediary that
did not receive an advance
commission
on the purchase
of Shares purchased with
 reinvested dividends or
capital gains
imposed by the Fund when
it closes an account for
 not meeting the minimum
 balance
requirements
of Shares which were purchased
 pursuant to an exchange
privilege if the Shares
were held for the
applicable CDSC holding
period and
representing a total or partial
 distribution from a qualified
 plan which would not include
 account
transfers rollovers or
redemptions for the purpose
 of reinvestment  For these
purposes qualified
plans would not include an
 Individual Retirement Account
 Keogh Plan or custodial account
following retirement
SCHEDULE OF FUNDS
OFFERING CLASS F SHARES
The Funds set forth on this
Schedule each offer Class F
 Shares on the terms set forth
 in the Class F Shares
Exhibit to the Multiple Class
Plan in each case as indicated
below  The 12b1 fees indicated
are the
maximum amounts authorized
 based on the average daily
net asset value  Actual amounts
 accrued may be
less
CLASS F SHARES SUBJECT TO
 THE BASIC LOAD SCHEDULE
Multiple Class Company
  Series
12b1 Fee
Federated Municipal Securities
 Fund Inc
None

EX-99.77Q1 OTHR EXHB

SUBITEM 77Q1A  AMENDMENT
TO ARTICLES OF INCORPORATION
FEDERATED MUNICIPAL
SECURITIES FUND INC
ARTICLES SUPPLEMENTARY

	Federated Municipal
 Securities Fund Inc a
Maryland corporation
 having its principal
office in the City of
Baltimore Maryland and
 a registered openend
Company under the
Investment Company Act
of 1940 the Corporation
hereby certifies to the
State Department of
Assessments and Taxation
 of Maryland that

	FIRST
The Corporation is
 authorized to issue
one billion 1000000000
 shares of
common stock all of which
have a par value of one
cent 01 per share with
an aggregate par value
of 10000000 These
Articles Supplementary
 do not increase the
 total authorized capital
 stock of
the Corporation or the
aggregate par value thereof

	SECOND	The Board
of Directors of the
 Corporation hereby
reclassifies i 75000000
shares of the authorized
and unissued shares of
Federated Municipal
 Securities Fund Inc
Class B
Shares ii 75000000 of
the authorized and
 unissued shares of
 Federated Municipal
 Securities
Fund Inc Class C Shares
 into authorized but
 unissued shares as follows

	Class	Number of Shares

Federated Municipal
 Securities Fund Inc
 Class F	150000000

	THIRD	Immediately
before the reclassification
of shares as set forth in
 Article
SECOND hereto the Corporation
 was authorized to issue
one billion 1000000000
 shares of
common stock all of which
were of a par value of one
cent 01 per share having
 an aggregate par
value of ten million
 dollars 10000000 which
 were classified as follows

	Class	Number of Shares

Federated Municipal Securities
Fund Inc Class A	375000000

Federated Municipal
Securities Fund Inc
Class B	250000000

Federated Municipal
Securities Fund Inc
Class C	375000000

Following the aforesaid
reclassification of
shares as set forth in
Article SECOND hereto the
Corporation will be
authorized to issue
 one billion 1000000000
shares of common stock
 all of
which have a par value
of one cent 01 per share
 with an aggregate par
 value of 10000000
classified as follows

	Class	Number of Shares

Federated Municipal Securities
 Fund Inc Class A
	375000000

Federated Municipal
 Securities Fund Inc
Class B	175000000

Federated Municipal
Securities Fund Inc
Class C	300000000

Federated Municipal
Securities Fund Inc
 Class F	150000000

	FOURTH	The shares
of common stock of the
Corporation reclassified
hereby shall
be subject to all of
 the provisions of
the Corporations Charter
relating to shares of
stock of the
Corporation generally
 and shall have the
 preferences conversion
 and other rights voting
 powers
restrictions limitations
 as to dividends
qualifications and terms
 and conditions of
redemption set
forth in Article FIFTH
paragraph b of the
Articles of Incorporation
 of the Corporation and
 as set
forth below

      a  Shares having a
 common Fund name shall
be invested in a common
investment
portfolio and the assets
 liabilities income
expenses dividends and
 related liquidation rights
belonging to each investment
 portfolio and allocated
among them and among the
various classes
invested therein shall
be as determined by the
 Board of Directors of
the Corporation in
accordance with law

      b  At such times
 which may vary between
and among the holders of
 particular classes of
stock invested in a common
 investment portfolio as
may be determined by the
Board of
Directors or with the
authorization of the
 Board of Directors by
the officers of the
Corporation in
accordance with the
Investment Company
Act of 1940 as amended
 applicable rules and
regulations thereunder
 and applicable rules
and regulations of the
National Association of
Securities Dealers Inc
 and reflected in the
 pertinent registration
 statement of the Corporation
shares of any particular
class of stock invested
in any common investment
 portfolio of the
Corporation may be
automatically converted
 into shares of another
 class of stock invested
in the
same common investment
 portfolio of the
Corporation based on the
 relative net asset values
 of
such classes at the time
 of conversion subject
 however to any conditions
 of conversion that may
be imposed by the Board
 of Directors or with
the authorization of
the Board of Directors
 by the
officers of the
Corporation and reflected
in the pertinent
registration statement
 of the Corporation
as aforesaid

      FIFTH
The stock has been
reclassified by the
Board of Directors under
 the
authority contained
in the Charter of the
Corporation

SIXTH  	These Articles
 Supplementary will
become effective
immediately upon filing
 with
the State Department
 of Assessments and
Taxation of Maryland



	IN WITNESS WHEREOF
 the Corporation has caused
these presents to be signed
in its
name and on its behalf
 by its President and
Assistant Secretary on
May 25 2007  The
undersigned President
and Assistant Secretary
 acknowledge that
 these Articles
Supplementary
are the act of the
Corporation that to
the best of their
 knowledge information
and belief all
matters and facts set
 forth herein relating
to the authorization
 and approval of these
 Articles of
Supplementary are true
 in all material
 respects and that
 this statement is
 made under the penalties
of perjury

WITNESS	FEDERATED
 MUNICIPAL SECURITIES FUND
INC



s Andrew P Cross
 s J Christopher Donahue
Andrew P Cross
J Christopher Donaue
Assistant Secretary
	President

EX-99.77Q1 OTHR EXHB

SUBITEM 77Q1G  EXHIBITS
The definitive Prospectus
 Proxy for the merger of
 Federated Vermont
 Municipal Income
Fund a
series of Federated
Municipal Securities
 Income Trust into
Federated Municipal
Securities
Funds Inc is hereby
 incorporated by
reference from the
definitive Prospectus
 Proxy Statement
filed with the SEC
 on July 16 2007 under
 Rule 497c SEC File
No 333 143413