-1-
                                          Exhibit (e)(iii) under Form
N-1A
                                          Exhibit (1) under Item
601/Reg. S-K

                               Exhibit B
                                 to the
                         Distributor's Contract

                LIBERTY MUNICIPAL SECURITIES FUND, INC.

                             Class C Shares

      The following provisions are hereby incorporated and made part of
the Distributor's Contract dated the 1st day of March, 1993, between
Liberty Municipal Securities Fund, Inc. and Federated Securities Corp.
with respect to Class of the Fund set forth above.

      1.    The Corporation hereby appoints FSC to engage in activities
principally intended to result in the sale of shares of the
above-listed Classes ("Shares").  Pursuant to this appointment, FSC is
authorized to select a group of brokers ("Brokers") to sell Shares at
the current offering price thereof as described and set forth in the
respective prospectuses of the Corporation, and to render
administrative support services to the Corporation and its
shareholders.  In addition, FSC is authorized to select a group of
administrators ("Administrators") to render administrative support
services to the Corporation and its shareholders.

      2.    Administrative support services may include, but are not
limited to, the following functions:  1) account openings:  the Broker
or Administrator communicates account openings via computer terminals
located on the Broker's or Administrator's premises; 2) account
closings:  the Broker or Administrator communicates account closings
via computer terminals; 3) enter purchase transactions:  purchase
transactions are entered through the Broker's or Administrator's own
personal computer or through the use of a toll-free telephone number;
4) enter redemption transactions:  Broker or Administrator enters
redemption transactions in the same manner as purchases; 5) account
maintenance:  Broker or Administrator provides or arranges to provide
accounting support for all transactions.  Broker or Administrator also
wires funds and receives funds for Corporation share purchases and
redemptions, confirms and reconciles all transactions, reviews the
activity in the Corporation's accounts, and provides training and
supervision of its personnel; 6) interest posting:  Broker or
Administrator posts and reinvests dividends to the Corporation's
accounts; 7) prospectus and shareholder reports:  Broker or
Administrator maintains and distributes current copies of prospectuses
and shareholder reports; 8) advertisements:  the Broker or
Administrator continuously advertises the availability of its services
and products; 9) customer lists:  the Broker or Administrator
continuously provides names of potential customers; 10) design
services:  the Broker or Administrator continuously designs material to
send to customers and develops methods of making such materials
accessible to customers; and 11) consultation services:  the Broker or
Administrator continuously provides information about the product needs
of customers.

      3.    During the term of this Agreement, the Corporation will pay
FSC for services pursuant to this Agreement, a monthly fee computed at
the annual rate of  .75 of 1% of the average aggregate net asset value
of the shares of the Class C Shares held during the month.  For the
month in which this Agreement becomes effective or terminates, there
shall be an appropriate proration of any fee payable on the basis of
the number of days that the Agreement is in effect during the month.

      4.    FSC may from time-to-time and for such periods as it deems
appropriate reduce its compensation to the extent any Classes' expenses
exceed such lower expense limitation as FSC may, by notice to the
Corporation, voluntarily declare to be effective.

       5.   FSC will enter into separate written agreements with
various firms to provide certain of the services set forth in Paragraph
1 herein.  FSC, in its sole discretion, may pay Brokers and
Administrators a periodic fee in respect of Shares owned from time to
time by their clients or customers.  The schedules of such fees and the
basis upon which such fees will be paid shall be determined from time
to time by FSC in its sole discretion.

      6.    FSC will prepare reports to the Board of Directors of the
Corporation on a quarterly basis showing amounts expended hereunder
including amounts paid to Brokers and Administrators and the purpose
for such payments.


      In consideration of the mutual covenants set forth in the
Distributor's Contract dated March 1, 1993, between Liberty Municipal
Securities Fund, Inc. and Federated Securities Corp., Liberty Municipal
Securities Fund, Inc. executes and delivers this Exhibit on behalf of
the Funds, and with respect to the Class of Shares thereof, first set
forth in this Exhibit.

      Witness the due execution hereof this 4th day of May, 1993.


ATTEST:                             LIBERTY MUNICIPAL SECURITIES
                                               FUND, INC.



/s/ John W. McGonigle               By: /s/J. Christopher Donahue
-----------------------------          ------------------------------
                     Secretary                               President
(SEAL)

ATTEST:                             FEDERATED SECURITIES CORP.


/s/ S. Elliott Cohan                By: /s/ John A. Staley, IV
-----------------------------          ------------------------------
                     Secretary                 Executive Vice President
(SEAL)