CHURCHILL TAX-FREE FUND OF KENTUCKY
              Supplement to the Statement of Additional Information
                              Dated April 30, 2009


         The material under the caption "Disclosure of Portfolio Holdings" is
replaced by the following:


Disclosure of Portfolio Holdings

     Under Fund policies, the Manager publicly discloses the complete schedule
of the Fund's portfolio holdings, as reported at the end of each calendar
quarter, generally by the 15th day after the end of each calendar quarter. Such
information will remain accessible until the next schedule is made publicly
available. You may obtain a copy of the Fund's schedule of portfolio holdings
for the most recently completed period by accessing the information on the
Fund's website at www.aquilafunds.com. The Fund also discloses the five largest
holdings by market value as of the close of the last business day of each
calendar month by posting the same to its web site on the 5th business day of
the following calendar month. Such information remains on the web site until the
next such posting.

     In addition, the Manager may share the Fund's non-public portfolio holdings
information with pricing services and other service providers to the Fund who
require access to such information in order to fulfill their contractual duties
to the Fund. The Manager may also disclose non-public information regarding the
Fund's portfolio holdings to certain mutual fund analysts and rating and
tracking entities, such as Morningstar and Lipper Analytical Services, or to
other entities that have a legitimate business purpose in receiving such
information on a more frequent basis. Exceptions to the frequency and recipients
of the disclosure may be made only with the advance authorization of the Fund's
Chief Compliance Officer upon a determination that such disclosure serves a
legitimate business purpose and is in the best interests of the Fund and will be
reported to the Board of Trustees at the next regularly scheduled board meeting.
All non-public portfolio holdings information is provided pursuant to
arrangements as to confidentiality.

     Whenever portfolio holdings disclosure made pursuant to these procedures
involves a possible conflict of interest between the Fund's shareholders and the
Fund's Manager, Distributor or any affiliated person of the Fund, the disclosure
may not be made unless a majority of the independent Trustees or a majority of a
board committee consisting solely of independent Trustees approves such
disclosure. The Fund and the Manager shall not enter into any arrangement
providing for the disclosure of non-public portfolio holdings information for
the receipt of compensation or benefit of any kind. Any material changes to the
policies and procedures for the disclosure of portfolio holdings will be
reported to the Board on at least an annual basis.



                 The Date of this Supplement is August 11, 2009