PENNSYLVANIA MUNICIPAL CASH TRUST
(A Portfolio of Federated Municipal Trust)
Institutional Shares
Supplement to Prospectus dated July 18, 1995 for investors in the State of
Ohio
   
   Ohio Administrative Code 1301:6-3-09(E)(12) prohibits an investment
   company from investing more than fifteen per cent of its total assets in
   restricted securities or securities of unseasoned issuers. Ohio
   Administrative Code 1301:6-3-09(F) permits an investment company to
   exceed this fifteen percent limit provided that the investment company
   informs investors of its intentions.
   
   The purpose of this supplement is to inform Ohio investors that the Fund,
   through its investment in certain securities determined by the Fund's
   Board of Trustees to be liquid, may exceed the fifteen percent limitation
   established by the State of Ohio with respect to restricted securities.
   
                                                               July 18, 1995


    FEDERATED SECURITIES CORP.

    Distributor
    A subsidiary of Federated Investors
    Federated Investors Tower
    Pittsburgh, PA  15222-3779
    Cusip 314229717
    G00215-01 (7/95)