INVESCO UNIT TRUSTS, MUNICIPAL SERIESINVESCO UNIT TRUSTS, TAXABLE INCOME SERIES

INSURED MUNICIPALS INCOME TRUSTINVESTORS' QUALITY TAX-EXEMPT TRUST

VAN KAMPEN FOCUS PORTFOLIOS, MUNICIPAL SERIESVAN KAMPEN UNIT TRUSTS, MUNICIPAL SERIES

VAN KAMPEN MERRITT INSURED INCOME TRUSTVAN KAMPEN AMERICAN CAPITAL INSURED INCOME TRUSTVAN KAMPEN FOCUS PORTFOLIOS INSURED INCOME TRUSTVAN KAMPEN FOCUS PORTFOLIOS, TAXABLE INCOME SERIES

VAN KAMPEN INSURED INCOME TRUSTVAN KAMPEN UNIT TRUSTS, TAXABLE INCOME SERIES

Supplement

Notwithstanding anything to the contrary in the Registration Statement for each Trust, commencing November 1, 2020, InvescoInvestment Advisers, LLC, an affiliate of the Sponsor, replaced ICE Data Pricing & Reference Data, LLC, as Evaluator. InvescoInvestment Advisers, LLC shall be compensated $0.35 per $1,000 principal amount of securities per Trust annually, in contrast to theprior compensation of $0.39 per $1,000 principal amount of securities per Trust annually for ICE Data Pricing & Reference Data, LLC.

Supplement Dated: October 30, 2020 U-CMSTISSPT103020

Investment Grade Corporate Trust, 3-7 Year Series 30

Investment Grade Corporate Trust, 3-7 Year Series 30 invests in a portfolio of investment grade corporatebonds, generally maturing approximately 3 to 7 years from the Date of Deposit. The Trust seeks to provide ahigh level of current income and to preserve capital. The Trust is a unit investment trust included in InvescoUnit Trusts, Taxable Income Series 634 .

Monthly Distributions _____________ Estimated Current Return: 2.91%

Estimated Long Term Return: 0.88%

Estimated current return shows the estimated cash you should receive each year divided by the Unit price.Estimated long term return shows the estimated return over the estimated life of your Trust. We base thisestimate on an average of the bond yields over their estimated life. This estimate also reflects the sales chargeand estimated expenses. We derive the average yield for your portfolio by weighting each bond’s yield by itsvalue and estimated life. Unlike estimated current return, estimated long term return accounts for maturities,discounts and premiums of the bonds. These estimates show a comparison rather than a prediction ofreturns. No return calculation can predict your actual return. These estimates are as of the opening ofbusiness on the Date of Deposit and will vary thereafter. Your actual return may vary from these estimates.

September 17, 2020

You should read this prospectus and retain it for future reference.

The Securities and Exchange Commission has not approved or disapproved of the TrustUnits or passed upon the adequacy or accuracy of this prospectus.

Any contrary representation is a criminal offense.

INVESCO

Investment Objective. The Trust seeks to providea high level of current income and to preserve capital.

Principal Investment Strategy. The Trust investsin a portfolio of investment grade corporate bondsmaturing approximately 3 to 7 years from the Date ofDeposit. In selecting bonds for the Trust, the Sponsorconsidered the following factors, among others:

• all ratings provided for the bonds must be atleast “BBB-” if issued by either Standard &Poor’s or Fitch Ratings, and at least “Baa3” ifissued by Moody’s Investors Service, Inc. or,in the case of a bond with no issued ratings,such a bond has credit characterist icssufficiently similar to those of comparablebonds that were so rated as to be acceptablefor acquisition by the Trust in the opinion ofthe Sponsor;

• the prices of the bonds relative to otherbonds of comparable quality and maturity;

• the current income provided by the bonds;

• the diversification of bonds as to purpose ofissue and location of issuer; and

• the probability of early return of principal orhigh legal or event risk.

The portfolio generally consists of taxable bondsmaturing approximately 3 to 7 years from the Date ofDeposit. Following the Date of Deposit, a bond maycease to be rated or its rating may be reduced, even tobelow “investment grade” (“BBB-” or “Baa3”), and theTrust could continue to hold such bond. See “TrustAdministration--Portfolio Administration”.

Principal Risks. As with all investments, you canlose money by investing in the Trust. The Trust alsomight not perform as well as you expect. This canhappen for reasons such as these:

• Bond prices will fluctuate. The value ofyour investment may fall over time.

• The value of the bonds will generallyfall if interest rates, in general, rise. Ina low interest rate environment risksassociated with rising rates are heightened.The negative impact on f ixed incomesecurities from any interest rate increasescould be swift and significant. No one canpredict whether interest rates will rise or fall inthe future.

• A bond issuer or insurer may be unableto make interest and/or principalpayments in the future.

• The financial condition of an issuer mayworsen or its credit ratings may drop,resulting in a reduction in the value ofyour Units. This may occur at any point intime, including during the primary offeringperiod.

• During periods of market turbulence,corporate bonds may experienceilliquidity and volatility. During suchperiods, there can be uncertainty in assessingthe financial condition of an issuer. As a result,the ratings of the bonds in the Trust’s portfoliomay not accurately reflect an issuer’s currentfinancial condition, prospects, or the extent ofthe risks associated with investing in suchissuer’s securities.

• A bond issuer might prepay or “call” abond before its stated maturity. If thishappens, the Trust wi l l d istr ibute thepr incipal to you but future interestdistributions will fall. A bond’s call pricecould be less than the price the Trust paidfor the bond.

• The Trust is concentrated in bondsissued by companies in the energy andfinancials sectors. Negative developmentsin these sectors will affect the value of yourinvestment more than would be the case in amore diversified investment.

• Bonds of foreign issuers in present risksbeyond those of U.S. issuers. These risksmay include market and political factors relatedto an issuer’s foreign market, international tradeconditions, less regulation, smaller or less liquidmarkets, increased volatil ity, differingaccounting practices and changes in the valueof foreign currencies.

• We do not actively manage the Trust’sportfolio. Except in limited circumstances,the Trust will hold the same bonds even if themarket value declines.

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(1) Some bonds may mature or be called or sold during your Trust’s life. This could include a call or sale at a price below par value. We cannotguarantee that the value of your Units will equal the principal amount of bonds per Unit when you redeem them or when your Trust terminates.

(2) During the initial offering period, part of the value of the Units represents an amount of cash deposited to pay all or a portion of the costs oforganizing the Trust. The estimated organization costs per Unit will be deducted from the assets of the Trust at the earlier of six months after theDate of Deposit or the end of the initial offering period. If Units are redeemed prior to any such reduction, these costs will not be deducted from theredemption proceeds. Organization costs are not included in the Public Offering Price per Unit for purposes of calculating the sales charge.

(3) After the first settlement date ( September 21, 2020 ), you will pay accrued interest from this date to your settlement date less interestdistributions.

(4) This shows estimated expenses in the first year other than organization costs. Organization costs are not deducted from interest income.(5) Your Trust assesses this fee per $1,000 principal amount of bonds. Your Trust assesses other fees per Unit.(6) We base this amount on estimated cash flows per Unit. This amount will vary with changes in expenses, interest rates and maturity, call or

sale of bonds. The Information Supplement includes the estimated cash flows.

Summary of Essential Financial Information(As of the opening of business on the Date of Deposit)

General InformationDate of Deposit September 17, 2020 Principal amount of bonds in Trust $4,800,000Principal amount of bonds per Unit (1) $1,000.00Number of Units 4,800Weighted average maturity of bonds 5 years

Unit PriceAggregate offering price of bonds in Trust $ 5,243,964Aggregate offering price of bonds per Unit $ 1,092.49

Plus sales charge per Unit $ 21.73Plus organization costs per Unit (2) $ 8.18

Public offering price per Unit (3) $ 1,122.40Redemption price per Unit (2)(3) $ 1,098.09

Portfolio Diversification (% of Par Value)Energy 28%Financials 27Information Technology 11Health Care 8Industrials 8Consumer Staples 7Consumer Discretionary 7Real Estate 4 _____Total 100% _____ _____

Estimated Annual Income Per UnitEstimated interest income $ 35.93

Less estimated expenses (4) $ 3.25Estimated net interest income $ 32.68

ExpensesSales Charge (% of Unit Price) 1.95%Organizational Costs per Unit (2) $ 8.18 ___________ ___________Estimated Annual Expenses per Unit

Trustee’s fee (5) $ 0.92Supervisory, bookkeeping and

administrative services fee $ 0.55Evaluation fee (5) $ 0.39Other operating expenses $ 1.39 ___________

Total annual expenses per Unit $ 3.25 ___________ ___________

Estimated DistributionsInitial interest distribution $ 1.72 on October 25, 2020Subsequent interest distributions (6) $ 2.72Record dates 10th day of each monthDistribution dates 25th day of each month

CUSIP NumbersMonthly 46136J-68-6Monthly Fee Based 46136J-69-4

PORTFOLIO (as of the opening of business on the Date of Deposit) Cost ofAggregate Name of Issuer, Title, Interest Rate and Redemption Bonds ToPrincipal Maturity Date of Bonds (1)(2) Ratings (3) Feature (4)(5) Trust (2)___________ ______________________________________________________ ___________________ ________________ ____________ CORPORATE BONDS - 100.00% Consumer Discretionary - 6.74%$ 125,000 TJX Companies, Inc. #3.50% Due 04/15/2025 . . . . . . . . . . . . . . . . . . . . . . . . . A A2 2025 @ 100 $ 140,065 200,000 VF Corporation #2.40% Due 04/23/2025 . . . . . . . . . . . . . . . . . . . . . . . . . A A3 2025 @ 100 213,598 Consumer Staples - 7.29% 150,000 Bunge Ltd Finance Corporation #4.35% Due 03/15/2024 . . . . . . . . . . . . . . . . . . . . . . . . . BBB Baa3 2024 @ 100 165,399 200,000 Bunge Limited Finance Corporation #3.25% Due 08/15/2026 . . . . . . . . . . . . . . . . . . . . . . . . . BBB Baa3 2026 @ 100 216,712 Energy - 28.27% 215,000 +BP Capital Markets plc 3.216% Due 11/28/2023 . . . . . . . . . . . . . . . . . . . . . . . . . A- A1 2023 @ 100 229,730 200,000 ConocoPhillips Company #3.35% Due 05/15/2025 . . . . . . . . . . . . . . . . . . . . . . . . . A A3 2025 @ 100 220,068 235,000 +Schlumberger Finance Canada, Ltd. #1.40% Due 09/17/2025 . . . . . . . . . . . . . . . . . . . . . . . . . A A2 2025 @ 100 237,131 350,000 Boardwalk Pipelines L.P. #5.95% Due 06/01/2026 . . . . . . . . . . . . . . . . . . . . . . . . . BBB- Baa3 2026 @ 100 413,865 350,000 +Canadian Natural Resources, Ltd. #3.85% Due 06/01/2027 . . . . . . . . . . . . . . . . . . . . . . . . . BBB Baa2 2027 @ 100 381,657 Financials - 26.77% 220,000 +HSBC Holdings plc 3.95% Due 05/18/2024 . . . . . . . . . . . . . . . . . . . . . . . . . . A- A2 2023 @ 100 237,261 90,000 Capital One Financial Corporation #3.30% Due 10/30/2024 . . . . . . . . . . . . . . . . . . . . . . . . . BBB Baa1 2024 @ 100 98,058 200,000 Western Union Company #2.85% Due 01/10/2025 . . . . . . . . . . . . . . . . . . . . . . . . . BBB Baa2 2024 @ 100 212,102 200,000 JPMorgan Chase & Company #3.125% Due 01/23/2025 . . . . . . . . . . . . . . . . . . . . . . . . A- A2 2024 @ 100 218,230 150,000 +Mitsubishi UFJ Financial Group, Inc. #3.85% Due 03/01/2026 . . . . . . . . . . . . . . . . . . . . . . . . . A- A1 ________ 172,777 215,000 +Mizuho Financial Group, Inc. 2.839% Due 09/13/2026 . . . . . . . . . . . . . . . . . . . . . . . . . A- A1 ________ 235,423 200,000 Jefferies Group LLC / Jefferies Group Capital Finance, Inc. #4.85% Due 01/15/2027 . . . . . . . . . . . . . . . . . . . . . . . . . BBB Baa3 ________ 229,762 Health Care - 7.80% 375,000 +Perrigo Finance Unlimited Company #3.90% Due 12/15/2024 . . . . . . . . . . . . . . . . . . . . . . . . . BBB- Baa3 2024 @ 100 409,275 Industrials - 7.48% 150,000 CNH Industrial Capital, LLC #4.20% Due 01/15/2024 . . . . . . . . . . . . . . . . . . . . . . . . . BBB Baa3 ________ 162,230 215,000 General Electric Company #3.45% Due 05/01/2027 . . . . . . . . . . . . . . . . . . . . . . . . . BBB+ Baa1 2027 @ 100 230,026

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PORTFOLIO (as of the opening of business on the Date of Deposit) (continued) Cost ofAggregate Name of Issuer, Title, Interest Rate and Redemption Bonds ToPrincipal Maturity Date of Bonds (1)(2) Ratings (3) Feature (4)(5) Trust (2)___________ ______________________________________________________ ___________________ ________________ ____________ Information Technology - 11.69%$ 165,000 Hewlett Packard Enterprise Company #4.65% Due 10/01/2024 . . . . . . . . . . . . . . . . . . . . . . . . . BBB Baa2 2024 @ 100 $ 186,686 175,000 Oracle Corporation #2.95% Due 11/15/2024 . . . . . . . . . . . . . . . . . . . . . . . . . A A3 2024 @ 100 191,014 215,000 +Flex, Ltd. #3.75% Due 02/01/2026 . . . . . . . . . . . . . . . . . . . . . . . . . BBB- Baa3 2026 @ 100 235,326 Real Estate - 3.96% 205,000 Corporate Office Properties L.P. #2.25% Due 03/15/2026 . . . . . . . . . . . . . . . . . . . . . . . . . BBB- Baa3 2026 @ 100 207,569___________ ____________$ 4,800,000 $ 5,243,964___________ _______________________ ____________

For an explanation of the footnotes used on this page, see “Notes to Portfolio”.

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Notes to Portfolio

(1) The bonds are represented by “regular way” or “when issued” contracts for the performance of which an irrevocable letterof credit, obtained from an affiliate of the Trustee, has been deposited with the Trustee. Contracts to acquire the bondswere entered into during the period from September 16, 2020 to September 17, 2020.

(2) The Cost of Bonds to Trust is based on the offering side valuation as of the opening of business on the Date of Depositdetermined by the Evaluator, a third party valuation provider, on the basis set forth under “Public Offering--Unit Price”. Inaccordance with FASB Accounting Standards Codification (“ASC”), ASC 820, Fair Value Measurements and Disclosures,the Trust’s investments are classified as Level 2, which refers to security prices determined using other significantobservable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These mayinclude quoted market prices for similar securities, interest rates, prepayment speeds and credit risk. The cost of the bondsto the Sponsor for the Trust is $5,248,589 and the Sponsor’s profit or (loss) is $(4,625).

“+” indicates that the bond was issued by a foreign company.

The Sponsor may have entered into contracts which hedge interest rate fluctuations on certain bonds. The cost of anysuch contracts and the corresponding gain or loss as of the evaluation time of the bonds is included in the Cost toSponsor. Bonds marked by “##” following the maturity date have been purchased on a “when, as and if issued” or“delayed delivery” basis. Interest on these bonds begins accruing to the benefit of Unitholders on their respective dates ofdelivery. Delivery is expected to take place at various dates after the first settlement date.

“#” prior to the coupon rate indicates that the bond was issued at an original issue discount. See “The Trusts--RiskFactors”. The tax effect of bonds issued at an original issue discount is described in “Federal Tax Status”.

(3) “o” indicates that the rating is contingent upon receipt by the rating agency of a policy of insurance obtained by the issuerof the bonds. All ratings are by Standard & Poor’s and Moody’s, respectively, unless otherwise indicated. “*” indicates asecurity rating by Fitch. “NR” indicates that the rating service did not provide a rating for that bond. For a brief descriptionof the ratings see “Description of Ratings” in the Information Supplement.

(4) With respect to any bonds presenting a redemption feature in this column, this is the year in which each bond is initially orcurrently callable and the call price for that year. Each bond continues to be callable at declining prices thereafter (but not belowpar value) except for original issue discount bonds which are redeemable at prices based on the issue price plus the amount oforiginal issue discount accreted to redemption date plus, if applicable, some premium, the amount of which will decline insubsequent years. “S.F.” indicates a sinking fund is established with respect to an issue of bonds. The bonds may also besubject to redemption without premium at any time pursuant to extraordinary optional or mandatory redemptions if certainevents occur. See “The Trusts--Risk Factors”.

(5) Certain bonds have a “make whole” call option and are redeemable in whole or in part at any time at the option of theissuer at a redemption price that is generally equal to the sum of the principal amount of such bond, a “make whole”amount, and any accrued and unpaid interest to the date of redemption. The “make whole” amount is generally equal tothe excess, if any, of (i) the aggregate present value as of the date of redemption of principal being redeemed and theamount of interest (exclusive of interest accrued to the date of redemption) that would have been payable if redemptionhad not been made, determined by discounting the remaining principal and interest at a specified rate (which varies frombond to bond and is generally equal to an average of yields on U.S. Treasury obligations with maturities corresponding tothe remaining life of the bond plus a premium rate) from the dates on which the principal and interest would have beenpayable if the redemption had not been made, over (ii) the aggregate principal amount of the bonds being redeemed. Inaddition, the bonds may also be subject to redemption without premium at any time pursuant to extraordinary optional ormandatory redemptions if certain events occur. See “The Trusts--Risk Factors”.

Underwriting. No Underwriters have purchased Units from the Sponsor, the sole and exclusive principal underwriter. See“Public Offering—Sponsor and Underwriter Compensation”.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Sponsor and Unitholders of Investment Grade Corporate Trust, 3-7 Year Series 30 (included in Invesco UnitTrusts, Taxable Income Series 634 ):

Opinion on the Financial Statements

We have audited the accompanying statement of condition (including the related portfolio schedule) of InvestmentGrade Corporate Trust, 3-7 Year Series 30 (included in Invesco Unit Trusts, Taxable Income Series 634 (the “Trust”)) as of September 17, 2020 , and the related notes (collectively referred to as the “financial statements”). In our opinion, thefinancial statements present fairly, in all material respects, the financial position of the Trust as of September 17, 2020 , inconformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of Invesco Capital Markets, Inc., the Sponsor. Our responsibility is toexpress an opinion on the Trust’s financial statements based on our audit. We are a public accounting firm registered withthe Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent withrespect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of theSecurities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financial statements are free of materialmisstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an auditof its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internalcontrol over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internalcontrol over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements,whether due to error or fraud, and performing procedures that respond to those risks. Such procedures includedexamining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit alsoincluded evaluating the accounting principles used and significant estimates made by the Sponsor, as well as evaluatingthe overall presentation of the financial statements. Our procedures included confirmation of cash or an irrevocable letterof credit deposited for the purchase of securities as shown in the statement of condition as of September 17, 2020 bycorrespondence with The Bank of New York Mellon, Trustee. We believe that our audit provides a reasonable basis forour opinion.

/s/ GRANT THORNTON LLP

We have served as the auditor of one or more of the unit investment trusts, sponsored by Invesco Capital Markets,Inc. and its predecessors, since 1976.

New York, New York September 17, 2020

Statement of ConditionAs of the opening of business on September 17, 2020

INVESTMENT IN BONDS

Contracts to purchase bonds (1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,243,964 Accrued interest to the first settlement date (1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,875 Cash (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,254 __________________ Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,326,093 __________________ __________________

LIABILITY AND INTEREST OF UNITHOLDERS Liability-- Accrued interest payable to Sponsor (1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42,875 Organization costs (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,254 Interest of Unitholders-- Cost to investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,387,510 Less: Gross underwriting commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,292 Less: Organization costs (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,254 __________________ Net interest to Unitholders (1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,243,964 __________________ Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,326,093 __________________ __________________ Units outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,800 __________________ __________________ Net asset value per Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,092.49 __________________ __________________

(1) The value of the bonds is determined by ICE Data Pricing & Reference Data, LLC on the bases set forth under “Public Offering--Unit Price”. The contracts to purchase bonds are collateralized by an irrevocable letter of credit in an amount sufficient to satisfysuch contracts.

(2) The Trustee will advance the amount of the net interest accrued to the first settlement date to the Trust for distribution to the Sponsor asthe Unitholder of record as of such date.

(3) A portion of the public offering price represents an amount of cash sufficient to pay for all or a portion of the costs incurred in establishingthe Trust. The amount of these costs are set forth under “Summary of Essential Financial Information--Expenses”. A distribution will bemade as of the earlier of six months after the Date of Deposit or the close of the initial offering period to an account maintained by theTrustee from which the organization expense obligation of the investors will be satisfied. To the extent that actual organization costs of theTrust are greater than the estimated amount, only the estimated organization costs added to the public offering price will be reimbursedto the Sponsor and deducted from the assets of the Trust.

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THE TRUST

General. Your Trust was created under the laws ofthe State of New York pursuant to a Trust Indenture andAgreement (the “Trust Agreement”), dated the date ofthis prospectus (the “Date of Deposit”) among InvescoCapital Markets, Inc., as Sponsor, ICE Data Pricing &Reference Data, LLC, as Evaluator, Invesco InvestmentAdvisers LLC, as Supervisor, and The Bank of New YorkMellon, as Trustee.

Your Trust may be an appropriate medium forinvestors who desire to participate in a portfolio oftaxable bonds with greater diversification than theymight be able to acquire individually. Diversification of aTrust’s assets will not eliminate the risk of loss alwaysinherent in the ownership of bonds. In addition, bondsof the type initially deposited in the portfolio of a Trustare often not available in small amounts and may, in thecase of any privately placed bonds, be available only toinstitutional investors.

On the Date of Deposit, the Sponsor deposited withthe Trustee the aggregate principal amount of bondsindicated in the “Summary of Essential FinancialInformation”. The bonds initially consist of deliverystatements relating to contracts for their purchase andcash, cash equivalents and/or irrevocable letters of creditissued by a financial institution. Thereafter, the Trustee, inexchange for the bonds, delivered to the Sponsorevidence of ownership of the number of Units indicatedunder “Summary of Essential Financial Information”. ATrust that holds primarily bonds within the 3 to 7 yearmaturity range, as described on the cover of theprospectus, is referred to herein as a “Short-Term Trust”.Unless otherwise terminated as provided herein, the TrustAgreement will terminate at the end of the calendar yearprior to the twentieth anniversary of its execution in thecase of a Short-Term Trust.

Each Unit initially offered represents a fractionalundivided interest in the principal and net income of theTrust. The number of Units is determined based upon a$1,000 principal amount of bonds in the Trust per Unit.To the extent that any Units are redeemed to the Trustee,the fractional undivided interest in the Trust representedby each Unit will increase, although the actual interest inthe Trust will remain unchanged. Units will remainoutstanding until redeemed by Unitholders or until thetermination of the Trust Agreement.

Objective and Bond Selection. The objective of aShort-Term Trust is to provide a high level of currentincome and to preserve capital by investing in a portfolioprimarily consisting of bonds maturing approximately 3 to7 years from the Date of Deposit. There is, of course, noguarantee that a Trust will achieve its objective. Your Trustmay be an appropriate investment vehicle for investorswho desire to participate in a portfolio of fixed incomebonds with greater diversification than they might be ableto acquire individually.

In selecting bonds for each Trust, the Sponsorconsidered the following factors, among others: (a) theratings criteria applicable to your Trust as listed under“Principal Investment Strategy”; (b) the prices of thebonds relative to other bonds of comparable quality andmaturity; (c) the current income provided by the bonds;(d) the diversification of bonds as to purpose of issue andlocation of issuer and (e) the probability of early return ofprincipal or high legal or event risk. After the Date ofDeposit, a bond may cease to be rated or its rating maybe reduced below the minimum required as of the Dateof Deposit. Neither event requires elimination of a bondfrom a Trust but may be considered in the Sponsor’sdetermination as to whether or not to direct the Trusteeto dispose of the bond (see “Trust Administration--Portfolio Administration”). In particular, the ratings of thebonds in an Investment Grade Corporate Trust could fallbelow “investment grade” (i.e., below “BBB-” or “Baa3”)during the Trust’s life and the Trust could continue to holdthe bonds. See “The Trusts--Risk Factors”.

Risk Factors. All investments involve risk. Thissection describes the main risks that can impact thevalue of bonds in your Trust. You should understandthese risks before you invest. If the value of the bondsfalls, the value of your Units will also fall. You can losemoney by investing in a Trust. No one can guaranteethat your Trust will achieve its objective or that yourinvestment return will be positive over any period. TheInformation Supplement, which is available uponrequest, contains a more detailed discussion of risksrelated to your investment.

Corporate Bond Risk. Corporate bonds, which aredebt instruments issued by corporations to raise capital,have priority over preferred securities and commonstock in an issuer’s capital structure, but may besubordinated to an issuer’s other debt instruments. Themarket value of a corporate bond may be affected byfactors directly related to the issuer, such as investors’

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perceptions of the creditworthiness of the issuer, theissuer’s financial performance, perceptions of the issuerin the market place, performance of the issuer’smanagement, the issuer’s capital structure, the use offinancial leverage and demand for the issuer’s goodsand services, and by factors not directly related to theissuer such as general market liquidity. The market valueof corporate bonds generally may be expected to riseand fall inversely with interest rates, and as a result,corporate bonds may lose value in a rising-rateenvironment. To the extent your Trust holds belowinvestment grade corporate bonds, such bonds areoften high risk and have speculative characteristics andmay be particularly susceptible to adverse issuer-specific developments.

Current economic conditions. The economic recessionin the United States which began in 2007 technically cameto an end in June of 2009, however the U.S. and globaleconomies continue to feel the effects of this recessionaryperiod, including increased unemployment and below-average levels of economic activity. The U.S. and otherforeign governments have taken extraordinary steps tocombat the effects of the economic crisis, however theultimate impact of these measures is unknown and cannotbe predicted. While the U.S. Federal Reserve formallyconcluded its quantitative easing program, there continuesto be uncertainty concerning potential future changes tothe federal funds rate. On August 5, 2011, Standard &Poor’s Rating Services downgraded the long-termsovereign credit rating of the United States of America toAA+ from AAA, citing the prolonged controversy overraising the statutory debt ceiling and the related fiscalpolicy debate. Any substantial change in general marketconditions may result in sudden and significant valuationincreases or declines in your Trust’s holdings.

Furthermore, a recent outbreak of a respiratory diseasecaused by a novel coronavirus (“COVID-19”), first detectedin China in December 2019, has spread globally in a shortperiod of time. COVID-19 has resulted in the disruption of,and delays in, production and supply chains and thedelivery of healthcare services and processes, as well asthe cancellation of organized events and educationalinstitutions, a decline in consumer demand for certaingoods and services, and general concern and uncertainty.In response, governments and businesses world-wide,including the United States, have taken aggressivemeasures, including closing borders, restrictinginternational and domestic travel, imposing prolonged

quarantines of large populations, and financial support ofthe economy and financial markets. COVID-19 and itseffects have contributed to increased volatility in globalmarkets, severe loses, liquidity constraints, and loweredyields; the duration of such effects cannot yet bedetermined but could be present for an extended periodof time. The effects that COVID-19 may have on certainsectors and industries are uncertain and may adverselyaffect the value of your Trust.

Market risk is the risk that the value of the bonds in yourTrust will fluctuate. This could cause the value of your Unitsto fall below your original purchase price or below the parvalue. Market value fluctuates in response to variousfactors. These can include changes in interest rates,inflation, the financial condition of a bond’s issuer or insurer,perceptions of the issuer or insurer, or ratings on a bond.Certain geopolitical and other events, includingenvironmental events and public health events such asepidemics and pandemics, may have a global impact andadd to instability in world economies and marketsgenerally. Changing economic, political or financial marketconditions in one country or geographic region couldadversely affect the market value of the securities held byyour Trust in a different country or geographic region dueto increasingly interconnected global economies andfinancial markets. Even though the Supervisor supervisesyour portfolio, you should remember that no one managesyour portfolio. Your Trust will not sell a bond solely becausethe market value falls as is possible in a managed fund.

Foreign securities risk. Investing in foreign securitiestypically involves more risks than investing in securities ofUnited States issuers. These risks can increase thepotential for losses in the Trust and affect its Unit price.These risks may include risks such as losses due topolitical, economic and social developments, internationaltrade conditions, foreign taxes (including withholdingtaxes), restrictions on foreign investments or exchange ofsecurities, foreign currency fluctuations or restriction onexchange or repatriation of currencies.

The political, economic and social structures of someforeign countries may be less stable and more volatilethan those in the U.S., and investments in these countriesmay be subject to the risks of internal and externalconflicts, currency devaluations, foreign ownershiplimitations and tax increases. It is possible that agovernment may take over the assets or operations of acompany or impose restrictions on the exchange or

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export of currency or other assets. Some countries alsomay have different legal systems that may make it difficultfor the Trust to exercise investor rights, and pursue legalremedies with respect to its foreign investments.Diplomatic and political developments, including rapidand adverse political changes, social instability, regionalconflicts, terrorism and war, could affect the economies,industries, and securities and currency markets, and thevalue of the Trust’s investments, in non-U.S. countries. Noone can predict the impact that these factors could haveon the Trust’s portfolio securities.

Foreign companies may not be subject to the samedisclosure, accounting, auditing and financial reportingstandards and practices as U.S. companies. Thus, theremay be less information publicly available about foreigncompanies than about most U.S. companies.

Certain foreign securities may be less liquid (harder tosell) and more volatile than many U.S. securities. Thismeans the Trust may at times be unable to sell foreignsecurities in a timely manner or at favorable prices.

In addition, for foreign securities of European issuers,the departure of any European Union (“EU”) memberfrom use of the Euro could lead to serious disruptionsto foreign exchanges, operations and settlements, whichmay have an adverse effect on European issuers. Morerecently, there is uncertainty regarding the state of theEU following the United Kingdom’s (“U.K.”) initiation onMarch 27, 2017 of the process to exit from the EU(“Brexit”). As of January 31, 2020, the U.K. has officiallyexited the EU, though trade negotiations are ongoing.The effect that Brexit may have on European issuers orcompanies with a significant European presence isuncertain. No one can predict the impact that thesefactors could have on the securities held by the Trust.

Interest rate risk is the risk that the value of bonds willfall if interest rates increase. Bonds typically fall in valuewhen interest rates rise and rise in value when interestrates fall. Bonds with longer periods before maturity areoften more sensitive to interest rate changes. In a lowinterest rate environment risks associated with risingrates are heightened. The negative impact on fixedincome securities from any interest rate increases couldbe swift and significant.

Credit risk is the risk that a bond’s issuer or insurer isunable to meet its obligation to pay principal or intereston the bond.

Call risk is the risk that the issuer prepays or “calls” abond before its stated maturity. An issuer might call abond if interest rates fall and the bond pays a higherinterest rate or if it no longer needs the money for theoriginal purpose. If an issuer calls a bond, your Trust willdistribute the principal to you but your future interestdistributions will fall. You might not be able to reinvestthis principal at as high a yield. A bond’s call price couldbe less than the price your Trust paid for the bond andcould be below the bond’s par value. This means thatyou could receive less than the amount you paid for yourUnits. If enough bonds in your Trust are called, your Trustcould terminate early.

Some or all of the bonds may also be subject toextraordinary optional or mandatory redemptions ifcertain events occur, such as certain changes in taxlaws, the substantial damage or destruction by fire orother casualty of the project for which the proceeds ofthe bonds were used, and various other events. The callprovisions are described in general terms in the“Redemption Feature” column of the “Portfolio” section,and the notes thereto.

Bond quality risk is the risk that a bond will fall in valueif a rating agency decreases the bond’s rating.

Bond concentration risk is the risk that your Trust isless diversified because it concentrates in a particulartype of bond. When a certain type of bond makes up25% or more of a Trust, the Trust is considered to be“concentrated” in that bond type. During the life of yourTrust, the relative weighting or composition of your Trustmay change for reasons including but not limited tobond price fluctuations, Unit redemption activity, as wellas the calling or maturing of bonds. Accordingly, thefluctuations in the relative weighting or composition ofyour Trust may result in concentrations (25% or more ofa portfolio’s assets) in bonds of a particular type, industryand/or geographic region. The different bond types aredescribed in the following sections.

Reduced diversification risk is the risk that your Trustwill become smaller and less diversified as bonds aresold, are called or mature. This could increase your riskof loss and increase your share of Trust expenses.

Liquidity risk is the risk that the value of a bond will fallif trading in the bond is limited or absent, therebyadversely affecting the Trust’s net asset value. The marketfor certain investments may become less liquid or illiquiddue to adverse changes in the conditions of a particular

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issuer or due to adverse market or economic conditions.In the absence of a liquid trading market for a particularsecurity, the price at which such security may be sold tomeet redemptions, as well as the value of the Units of yourTrust, may be adversely affected. No one can guaranteethat a liquid trading market will exist for any bond becausethese bonds generally trade in the over-the-countermarket (they are not listed on a securities exchange).Because of the difficulties currently being experienced bymany companies in the financial services industry, manymarkets are experiencing substantially reduced liquidity.As a result of such illiquidity, the Trustee may have to sellother or additional bonds if necessary to satisfyredemption requests.

Litigation and legislation risk is the risk that futurelitigation or legislation could affect the value of your Trust.Litigation could challenge an issuer’s authority to issueor make payments on bonds.

Corporate Bond Industry Risks. Your Trust mayinvest significantly in bonds of certain industries. Anynegative impact on the related industry will have a greaterimpact on the value of Units than on a portfolio diversifiedover several industries. You should understand the risksof these industries before you invest.

Communications Issuers. Your Trust may investsignificantly in bonds issued by communicationscompanies, which includes telecommunicationscompanies. This sector is primarily characterized byextensive government regulation and intensecompetition.

Companies in the telecommunications industryallocate significant resources in efforts to comply withapplicable government regulations. Telecommunicationscompanies operating in the U.S. must comply withapplicable state and federal regulations, including thoseof the Federal Communications Commission. The costsof complying with governmental regulations, delays orfailure to receive required regulatory approvals or theenactment of new adverse regulatory requirements maynegatively affect the business of telecommunicationscompanies. Recent industry consolidation trends maylead to increased regulation in primary markets.Internationally, telecommunications companies may faceregulatory challenges such as securing pre-marketingclearance of products and prices, which may bearbitrary and unpredictable. U.S. federal and stategovernments regulate permitted rates of return and the

kinds of services that a company may offer. U.S. federallegislation governing the telecommunications industrymay become subject to judicial review and additionalinterpretation, which may adversely affect certaintelecommunications issuers.

The competitive landscape in the telecommunicationssector is intense and constantly evolving. The productsand services of these companies may become outdatedvery rapidly. A company’s performance can be hurt if thecompany fails to keep pace with technological advances.At the same time, demand for some telecommunicationsservices remains weak, as several key markets areoversaturated and many customers can choose betweenseveral service providers and technology platforms. Tomeet increasing competition, companies may have tocommit substantial capital, particularly in the formulationof new products and services using new technologies. Asa result, many companies have been compelled to cutcosts by reducing their workforce, outsourcing,consolidating and/or closing existing facilities and divestinglow selling product lines. Certain telecommunicationscompanies may be engaged in fierce competition for ashare of the market of their products and may have highercosts, including liabilities associated with the medical,pension and postretirement expenses of their workforce,than their competitors. As a result, competitive pressuresare intense and the stocks are subject to rapid pricevolatility. Moreover, continued consolidation in this industrycould create integration expenses and delay, andconsequent management diversion of attention away fromongoing operations and related risks, among other factors,could result in the failure of these companies to realizeexpected cost savings or synergies.

Several high-profile bankruptcies of largetelecommunications companies in the past haveillustrated the potentially unstable condition of thetelecommunications industry. High debt loads thatwere accumulated during the industry growth spurt ofthe 1990s caught up to the industry, causing debt andstock prices to trade at distressed levels for manytelecommunications companies and increasing thecost of capital for needed additional investment.Furthermore, certain companies involved in theindustry have also faced scrutiny for allegedaccounting irregularities that may have led to theoverstatement of their financial results, and othercompanies in the industry may face similar scrutiny.Moreover, some companies have begun the process

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of emerging from bankruptcy and may have reducedlevels of debt and other competitive advantages overother telecommunications companies. Due to theseand other factors, the risk level of owning the securitiesof telecommunications companies remains substantialand may continue to rise.

Consumer Discretionary and Consumer StaplesIssuers. Your Trust may invest significantly in bondsissued by companies that manufacture or sell variousconsumer products. General risks of these companiesinclude the overall state of the economy, intensecompetition and consumer spending trends. A decline inthe economy which results in a reduction of consumers’disposable income can negatively impact spendinghabits. Global factors including political developments,imposition of import controls, fluctuations in oil prices,and changes in exchange rates may adversely affectissuers of consumer products and services.

Competitiveness in the retail industry may requirelarge capital outlays for the installation of automatedcheckout equipment to control inventory, track the saleof items and gauge the success of sales campaigns.Retailers who sell their products over the Internet havethe potential to access more consumers, but mayrequire sophisticated technology to remaincompetitive. Changes in demographics and consumertastes can also affect the demand for, and the successof, consumer products and services in themarketplace. Consumer products and servicescompanies may be subject to government regulationaffecting their products and operations which maynegatively impact performance. Tobacco companiesmay be adversely affected by new laws, regulationsand litigation.

Energy Issuers. Your Trust may invest significantly inbonds issued by energy companies. Energy companiescan be significantly impacted by fluctuations in the pricesof energy fuels, such as crude oil, natural gas, and otherfossil fuels. Extended periods of low energy fuel prices canhave a material adverse impact on an energy company’sfinancial condition and results of operations. The prices ofenergy fuels can be materially impacted by generaleconomic conditions, demand for energy fuels, industryinventory levels, production quotas or other actions thatmight be imposed by the Organization of PetroleumExporting Countries (OPEC), weather-related disruptionsand damage, competing fuel prices, and geopolitical risks.Recently, the price of crude oil, natural gas and other fossil

fuels has declined substantially and experienced significantvolatility, which has adversely impacted energy companiesand their stock prices and dividends. The price of energyfuels may decline further and have further adverse effectson energy companies.

Some energy companies depend on their ability to findand acquire additional energy reserves. The explorationand recovery process involves significant operatinghazards and can be very costly. An energy company hasno assurance that it will find reserves or that any reservesfound will be economically recoverable.

The energy industry also faces substantial governmentregulation, including environmental regulation regarding airemissions and disposal of hazardous materials. Theseregulations may increase costs and limit production andusage of certain fuels. Additionally, governments havebeen increasing their attention to issues related togreenhouse gas (“GHG”) emissions and climate change,and regulatory measures to limit or reduce GHG emissionsare currently in various stages of discussion orimplementation. GHG emissions-related regulations couldsubstantially harm energy companies, including byreducing the demand for energy fuels and increasingcompliance costs. Energy companies also face risksrelated to political conditions in oil producing regions (suchas the Middle East). Political instability or war in theseregions could negatively impact energy companies.

The operations of energy companies can bedisrupted by natural or human factors beyond thecontrol of the energy company. These includehurricanes, floods, severe storms, and other weatherevents, civil unrest, accidents, war, earthquakes, fire,political events, systems failures, and terrorist attacks,any of which could result in suspension of operations.Energy companies also face certain hazards inherent tooperating in their industry, such as accidental releasesof energy fuels or other hazardous materials, explosions,and mechanical failures, which can result inenvironmental damage, loss of life, loss of revenues,legal liability and/or disruption of operations.

Financials Issuers. Your Trust may invest significantlyin bonds issued by financial services companies.Companies in the financial services industry include, butare not limited to, companies involved in activities suchas banking, mortgage finance, consumer finance,specialized finance, industrial finance and leasing,investment banking and brokerage, asset management

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and custody, corporate lending, insurance, and financialinvestment. In general, financial services issuers aresubstantially affected by changes in economic andmarket conditions, including: the liquidity and volatilitylevels in the global financial markets; interest rates, aswell as currency and commodities prices; investorsentiment; the rate of corporate and consumer defaults;inflation and unemployment; the availability and cost ofcapital and credit; exposure to various geographicmarkets or in commercial and residential real estate;competition from new entrants in their fields of business;extensive government regulation; and the overall healthof the U.S. and international economies. Due to the widevariety of companies in the financial services sector, theymay behave and react in different ways in response tochanges in economic and market conditions.

Companies in the financial services sector are subjectto several distinct risks. Such companies may be subjectto systematic risk, which may result due to factorsoutside the control of a particular financial institution —like the failure of another, significant financial institutionor material disruptions to the credit markets — thatcould adversely affect the ability of the financial institutionto operate normally or may impair its financial condition.Financial services companies are typically affected bychanges in interest rates, and may be disproportionallyaffected as a result of volatile and/ or rising interest rates.

Certain financial services companies may themselveshave concentrated portfolios, which makes themvulnerable to economic conditions that affect thatindustry. Companies in this sector are often subject tocredit risk, meaning they may have exposure toinvestments or agreements which under certaincircumstances may lead to losses.

The financial services sector may be adverselyaffected by global developments including recessionaryconditions, deterioration in the credit markets andconcerns over sovereign debt. This may increase thecredit risk, and possibility of default, of bonds issuedby such institutions faced with these problems. Inaddition, the liquidity of certain debt instruments maybe reduced or eliminated due to the lack of availablemarket makers. There can be no assurance that therisks associated with investment in financial servicesissuers will decrease even assuming that the U.S.and/or foreign governments and agencies take stepsto address problems that may arise.

Most financial services companies are subject toextensive governmental regulation, which limits theiractivities and may affect their ability to earn a profit froma given line of business. This also exposes financialservices issuers to regulatory risk, where certain financialservices companies may suffer setbacks if regulatorschange the rules under which they operate. Challengingeconomic and political conditions, along with increasedpublic scrutiny during the past several years, led to newlegislation and increased regulation in the U.S. andabroad, creating additional difficulties for financialinstitutions. Regulatory initiatives and requirements thatwere proposed around the world may be inconsistent ormay conflict with previous regulations to which financialservices issuers were subject, thereby resulting in highercompliance and legal costs, as well as the potential forhigher operational, capital and liquidity costs. Proposedor enacted regulations may further limit the amounts andtypes of loans and other financial commitments certainfinancial services issuers can make, and further, maylimit the interest rates and fees they can charge, theprices they can charge and the amount of capital theymust maintain. These laws and regulations may affectthe manner in which a particular financial institution doesbusiness and the products and services it may provide.Increased regulation may restrict a company’s ability tocompete in its current businesses or to enter into oracquire new businesses. New regulations may reduceor limit a company’s revenue or impose additional fees,limit the scope of their activities, increase assessmentsor taxes on those companies and intensify regulatorysupervision, adversely affecting business operations orleading to other negative consequences.

Among the most prominent pieces of U.S. legislationfollowing the 2008 financial crisis was the Dodd-FrankWall Street Reform and Consumer Protection Act (the“Dodd-Frank Act”), enacted into federal law on July 21,2010. The Dodd-Frank Act included reforms andrefinements to modernize existing laws to addressemerging risks and issues in the nation’s evolvingfinancial system. It also established entirely newregulatory regimes, including in areas such as systemicrisk regulation, over-the-counter derivatives marketoversight, and federal consumer protection. The Dodd-Frank Act intended to cover virtually all participants inthe financial services industry for years to come,including banks, thrifts, depository institution holdingcompanies, mortgage lenders, insurance companies,

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industrial loan companies, broker-dealers and othersecurities and investment advisory firms, private equityand hedge funds, consumers, numerous federalagencies and the federal regulatory structure. Inparticular, certain provisions of the Dodd-Frank Actincreased the capital requirements of certain financialservices companies supervised by the Federal Reserve,resulting in such companies incurring generally higherdeposit premiums. The Economic Growth, RegulatoryRelief and Consumer Protection Act (the “Relief Act”),enacted into federal law on May 23, 2018, introducedchanges to several aspects of the U.S. financial industry.The Relief Act dilutes some of the stringent regulationsimposed by the Dodd-Frank Act and aims to makethings easier for small- and medium-sized U.S. banks –however, all banks will remain regulated. The Relief Actwill relieve small- and medium-sized banks from majorregulatory compliance costs linked with stricter scrutiny.

The Relief Act may lead to further deregulation androll-back of the Dodd-Frank Act and the Sponsor isunable to predict the impact that such changes mayhave on financial services issuers.

Financial services companies operating in foreigncountries are also subject to regulatory and interest rateconcerns. In particular, government regulation in certainforeign countries may include controls on interest rates,credit availability, prices and currency transfers. Thedeparture of any EU member from use of the Euro couldlead to serious disruptions to foreign exchanges,operations and settlements, which may have an adverseeffect on financial services issuers. More recently, thereis uncertainty regarding the state of the EU following theU.K.’s initiation on March 27, 2017, of the process to exitfrom the EU. As of January 31, 2020, the U.K. hasofficially exited the EU, though trade negotiations are stillongoing. The effect that Brexit may have on the globalfinancial markets or on the financial services companiesin your Trust is uncertain.

Commercial banks (including “money center”regional and community banks), savings and loanassociations and holding companies of the foregoingare especially subject to adverse effects of volatileinterest rates, concentrations of loans in particularindustries or classifications (such as real estate, energy,or sub-prime mortgages), and significant competition.The profitability of these businesses is to a significantdegree dependent on the availability and cost of capitalfunds. Economic conditions in the real estate market

may have a particularly strong effect on certain banksand savings associations. Commercial banks andsavings associations are subject to extensive federaland, in many instances, state regulation. Neither suchextensive regulation nor the federal insurance ofdeposits ensures the solvency or profitability ofcompanies in this industry, and there is no assuranceagainst losses in securities issued by such companies.

Insurance companies are particularly subject togovernment regulation and rate setting, potentialantitrust and tax law changes, and industry-wide pricingand competition cycles. Property and casualty insurancecompanies also may be affected by weather, terrorism,long-term climate changes, and other catastrophes. Lifeand health insurance companies may be affected bymortality and morbidity rates, including the effects ofepidemics. Individual insurance companies may beexposed to reserve inadequacies, problems ininvestment portfolios (for example, real estate or “junk”bond holdings) and failures of reinsurance carriers.

Many of the investment considerations discussed inconnection with banks and insurance companies alsoapply to other financial services companies. Thesecompanies are subject to extensive regulation, rapidbusiness changes, and volatile performance dependenton the availability and cost of capital and prevailinginterest rates and significant competition. Generaleconomic conditions significantly affect thesecompanies. Credit and other losses resulting from thefinancial difficulty of borrowers or other third parties havea potentially adverse effect on companies in this industry.Investment banking, securities brokerage andinvestment advisory companies are particularly subjectto government regulation and the risks inherent insecurities trading and underwriting activities.

The financial condition of customers, clients andcounterparties, including other financial institutions,could adversely affect financial services issuers. Financialservices issuers are interrelated as a result of marketmaking, trading, clearing or other counterpartyrelationships. Many of these transactions exposefinancial services issuers to credit risk as a result of theactions of, or deterioration in, the commercialsoundness of other counterparty financial institutions.Economic and market conditions may increase creditexposures due to the increased risk of customer, clientor counterparty default. Downgrades to the creditratings of financial services issuers could have a negative

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effect on liquidity, cash flows, competitive position,financial condition and results of operations bysignificantly limiting access to funding or capital markets,increasing borrowing costs or triggering increasedcollateral requirements. Financial services issuers facesignificant legal risk, both from regulatory investigationsand proceedings, as well as private actions. Profitmargins of these companies continue to shrink due tothe commoditization of traditional businesses, newcompetitors, capital expenditures on new technologyand the pressure to compete globally.

Health Care Issuers. Your Trust may invest significantlyin bonds issued by health care companies. These issuersinclude companies involved in advanced medical devicesand instruments, drugs and biotechnology, managedcare, hospital management/health services and medicalsupplies. These companies face substantial governmentregulation and approval procedures. General risks ofhealth care companies include extensive competition,product liability litigation and evolving governmentregulation.

On March 30, 2010, the Health Care and EducationReconciliation Act of 2010 (incorporating the PatientProtection and Affordable Care Act, collectively the“Act”) was enacted into law. The Act continues to havea significant impact on the health care sector throughthe implementation of a number of reforms in a complexand ongoing process, with varying effective dates.Significant provisions of the Act include the introductionof required health care coverage for most Americans,significant expansion in the number of Americans eligiblefor Medicaid, modification of taxes and tax credits in thehealth care sector, and subsidized insurance for low tomiddle income families. The Act also provides for morethorough regulation of private health insuranceproviders, including a prohibition on the denial ofcoverage due to pre-existing conditions. However, thecurrent federal administration is seeking to repeal the Actand many aspects of it are therefore in flux. In late 2017,along with the passage of sweeping tax reform,legislation was passed which eliminated the individualmandate (a penalty for failure to obtain a minimum levelof health insurance coverage) beginning in 2019. It isestimated that the repeal of the individual mandate willcause a significant amount of people to be uninsuredwhich may have an adverse effect on insurancepremiums and federal subsidies. The Sponsor is unable

to predict the full impact of the Act, or of its potentialrepeal or modification, on the Securities in your Trust.

As illustrated by the Act, Congress may from time totime propose legislative action that will impact the healthcare sector. The proposals may span a wide range oftopics, including cost and price controls (which mayinclude a freeze on the prices of prescription drugs),incentives for competition in the provision of health careservices, promotion of pre-paid health care plans andadditional tax incentives and penalties aimed at the healthcare sector. The government could also reduce fundingfor health care related research.

Drug and medical products companies also face therisk of increasing competition from new products orservices, generic drug sales, product obsolescence,increased government regulation, termination of patentprotection for drug or medical supply products and therisk that a product will never come to market. Theresearch and development costs of bringing a new drugor medical product to market are substantial. Thisprocess involves lengthy government review with noguarantee of approval. These companies may havelosses and may not offer proposed products for severalyears, if at all. The failure to gain approval for a new drugor product can have a substantial negative effect on acompany and its stock. The goods and services of healthcare issuers are also subject to risks of malpracticeclaims, product liability claims or other litigation.

Health care facility operators face risks related todemand for services, the ability of the facility to providerequired services, an increased emphasis on outpatientservices, confidence in the facility, managementcapabilities, competitive forces that may result in pricediscounting, efforts by insurers and government agenciesto limit rates, expenses, the cost and possibleunavailability of malpractice insurance, and terminationor restriction of government financial assistance (such asMedicare, Medicaid or similar programs).

Industrials Issuers. Your Trust may invest significantlyin bonds issued by industrials companies. General risksof industrials companies include the general state of theeconomy, intense competition, imposition of importcontrols, volatility in commodity prices, currencyexchange rate fluctuation, consolidation, labor relations,domestic and international politics, excess capacity andconsumer spending trends. Companies in the industrialssector may be adversely affected by liability for

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environmental damage and product liability claims.Capital goods companies may also be significantlyaffected by overall capital spending and leverage levels,economic cycles, technical obsolescence, delays inmodernization, limitations on supply of key materials,depletion of resources, government regulations,government contracts and e-commerce initiatives.

Industrials companies may also be affected by factorsmore specific to their individual industries. Industrialmachinery manufacturers may be subject to declines incommercial and consumer demand and the need formodernization. Aerospace and defense companies maybe influenced by decreased demand for new equipment,aircraft order cancellations, disputes over or ability toobtain or retain government contracts, changes ingovernment budget priorities, changes in aircraft-leasingcontracts and cutbacks in profitable business travel. Thenumber of housing starts, levels of public and non-residential construction including weakening demand fornew office and retail space, and overall constructionspending may adversely affect construction materials andequipment manufacturers. Stocks of transportationcompanies are cyclical and can be significantly affectedby economic changes, fuel prices and insurance costs.Transportation companies in certain countries may alsobe subject to significant government regulation andoversight, which may negatively impact their businesses.

Materials Issuers. Your Trust may invest significantly inbonds issued by companies in the materials industry.Companies in the materials sector could be adverselyaffected by commodity price volatility, exchange rates,import controls and increased competition. Production ofmaterials often exceeds demand as a result ofoverbuilding or economic downturns, leading to poorinvestment returns. Companies in the materials sector areat risk for environmental damage and product liabilityclaims. Companies in the materials sector may beadversely affected by depletion of resources, technicalprogress, labor relations, and governmental regulations.

Real Estate Issuers. Your Trust may invest significantlyin bonds issued by real estate companies. You shouldunderstand the risks of real estate companies before youinvest. Many factors can have an adverse impact on theperformance of a particular real estate company, includingits cash available for distribution, the credit quality of aparticular company or the real estate industry generally.The success of real estate companies depends on variousfactors, including the occupancy and rent levels,

appreciation of the underlying property and the ability toraise rents on those properties. Economic recession,overbuilding, tax law changes, higher interest rates orexcessive speculation can all negatively impact thesecompanies, their future earnings and share prices.

Risks associated with real estate companies include,among other factors,

• general U.S. and global as well as localeconomic conditions,

• decline in real estate values,

• the financial health of tenants,

• over-building and increased competition fortenants,

• over-supply of properties for sale,

• changing demographics,

• changes in interest rates, tax rates and otheroperating expenses,

• changes in government regulations,

• faulty construction and the ongoing need forcapital improvements,

• regulatory and judicial requirements,including relating to liability for environmentalhazards,

• changes in neighborhood values and buyerdemand, and

• the unavailability of construction financing ormortgage loans at rates acceptable todevelopers.

Variations in rental income and space availability andvacancy rates in terms of supply and demand areadditional factors affecting real estate generally and realestate companies in particular. Properties owned by acompany may not be adequately insured against certainlosses and may be subject to significant environmentalliabilities, including remediation costs.

You should also be aware that real estate companiesmay not be diversified and are subject to the risks offinancing projects.

Because of the structure of certain real estatecompanies, and legal requirements in many countries thatthese companies distribute a certain minimum amount oftheir taxable income to shareholders annually, real estatecompanies often require frequent amounts of new funding,

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through both borrowing money and issuing stock. Thus,many real estate companies historically have frequentlyissued substantial amounts of new equity shares (orequivalents) to purchase or build new properties. This mayhave adversely affected security market prices. Bothexisting and new share issuances may have an adverseeffect on these prices in the future, especially whencompanies continue to issue stock when real estate pricesare relatively high and stock prices are relatively low.

Information Technology Issuers. Your Trust may investsignificantly in bonds issued by companies in thetechnology sector which includes information technologycompanies. The information technology sector includescompanies that are involved in computer and businessservices, enterprise software/technical software, Internetand computer software, Internet-related services,networking and telecommunications equipment,telecommunications services, electronics products, serverhardware, computer hardware and peripherals,semiconductor capital equipment and semiconductors.These companies face risks related to rapidly changingtechnology, rapid product obsolescence, cyclical marketpatterns, evolving industry standards and frequent newproduct introductions.

Companies in this sector face risks from rapid changesin technology, competition, dependence on certainsuppliers and supplies, rapid obsolescence of productsor services, patent termination, frequent new productsand government regulation. These companies can alsobe adversely affected by interruption or reduction insupply of components or loss of key customers andfailure to comply with certain industry standards.

An unexpected change in technology can have asignificant negative impact on a company. The failure of acompany to introduce new products or technologies orkeep pace with rapidly changing technology can have anegative impact on the company’s results. Certaintechnology companies may also be smaller and/or lessexperienced companies with limited product lines, marketsor resources. Stocks of some Internet companies havehigh price-to-earnings ratios with little or no earningshistories. Technology stocks tend to experiencesubstantial price volatility and speculative trading.Announcements about new products, technologies,operating results or marketing alliances can cause stockprices to fluctuate dramatically. At times, however, extremeprice and volume fluctuations are unrelated to theoperating performance of a company. This can impact

your ability to redeem your Units at a price equal to orgreater than what you paid.

Utility Issuers. The Trust may invest significantly inbonds issued by utility companies or in companies relatedto the utility industry. Many utility companies, especiallyelectric and gas and other energy related utility companies,are subject to various uncertainties, including:

• Risks of increases in fuel and other operatingcosts;

• Restrictions on operations and increasedcosts and delays as a result of environmental,nuclear safety and other regulations;

• Regulatory restrictions on the ability to passincreasing wholesale costs along to the retailand business customer;

• Coping with the general effects of energyconservation;

• Technological innovations which may renderexisting plants, equipment or productsobsolete;

• The effects of unusual, unexpected orabnormal local weather

• Maturing markets and difficulty in expandingto new markets due to regulatory and otherfactors;

• The potential impact of natural or manmadedisasters;

• Difficulty obtaining adequate returns oninvested capital, even if frequent rateincreases are approved by public servicecommissions;

• The high cost of obtaining financing duringperiods of inflation;

• Difficulties of the capital markets in absorbingutility debt and equity securities;

• Increased competition; and

• International politics.

Any of these factors, or a combination of thesefactors, could affect the supply of or demand for energy,such as electricity or natural gas, or water, or the abilityof the issuers to pay for such energy or water whichcould adversely affect the profitability of the issuers of thebonds and the performance of the Trust.

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Utility companies are subject to extensive regulationat the federal level in the United States, and many areregulated at the state level as well. The value of utilitycompany stocks may decline because governmentalregulation affecting the utilities industry can change. Thisregulation may prevent or delay the utility company frompassing along cost increases to its customers, whichcould hinder the utility company’s ability to meet itsobligations to its suppliers and could lead to the takingof measures, including the acceleration of obligations orthe institution of involuntary bankruptcy proceedings, byits creditors against such utility company. Furthermore,regulatory authorities, which may be subject to politicaland other pressures, may not grant future rate increases,or may impose accounting or operational policies, anyof which could adversely affect a company’s profitabilityand its stock price.

Certain utility companies have experienced full orpartial deregulation in recent years. These utilitycompanies are frequently more similar to industrialcompanies in that they are subject to greatercompetition and have been permitted by regulators todiversify outside of their original geographic regions andtheir traditional lines of business. These opportunitiesmay permit certain utility companies to earn more thantheir traditional regulated rates of return. Somecompanies, however, may be forced to defend their corebusiness and may be less profitable. While regulatedproviders tend to have regulated returns, non-regulatedproviders’ returns are not regulated and generally aremore volatile. These developments have reducedstability of cash flows in those states with non-regulatedproviders and could impact the short-term earningspotential of some in this industry. These trends have alsomade shares of some utility companies less sensitive tointerest rate changes but more sensitive to changes inrevenue and earnings and caused them to reduce theratio of their earnings they pay out as dividends.

Certain utilities companies face risks associated withthe operation of nuclear facilities for electric generation,including, among other considerations, litigation, theproblems associated with the use of radioactive materialsand the effects of natural or man-made disasters. Ingeneral, certain utility companies may face additionalregulation and litigation regarding their power plantoperations, increased costs from new or greaterregulation of these operations, and expenses related tothe purchase of emissions control equipment.

More About the Bonds. In addition to describingthe purpose of the bonds, other information about thebonds is also included in the “Portfolio” and notesthereto. This information relates to other characteristicsof the bonds. This section briefly describes some ofthese characteristics.

Original issue discount bonds were initially issued ata price below their face (or par) value. These bondstypically pay a lower interest rate than comparablebonds that were issued at or above their par value. In astable interest rate environment, the market value ofthese bonds tends to increase more slowly in early yearsand in greater increments as the bonds approachmaturity. The issuers of these bonds may be able to callor redeem a bond before its stated maturity date and ata price less than the bond’s par value.

Zero coupon bonds are a type of original issue discountbond. These bonds do not pay any current interest duringtheir life. If an investor owns this type of bond, the investorhas the right to receive a final payment of the bond’s parvalue at maturity. The price of these bonds often fluctuatesgreatly during periods of changing market interest ratescompared to bonds that make current interest payments.The issuers of these bonds may be able to call or redeema bond before its stated maturity date and at a price lessthan the bond’s par value.

“When, as and if issued” bonds are bonds that tradebefore they are actually issued. This means that theSponsor can only deliver them to your Trust “when, asand if” the bonds are actually issued. Delivery of thesebonds may be delayed or may not occur. Interest onthese bonds does not begin accruing to your Trust untilthe Sponsor delivers the bond to the Trust. You mayhave to adjust your tax basis if the Sponsor delivers anyof these bonds after the expected delivery date. Anyadjustment would reflect interest that accrued betweenthe time you purchased your Units and the delivery ofthe bonds to your Trust. This could lower your first yearestimated current return. You may experience gains orlosses on these bonds from the time you purchase Unitseven though your Trust has not yet received them.

In order to acquire certain bonds, it may be necessaryfor the Sponsor or Trustee to pay amounts coveringaccrued interest on the bonds which exceed theamounts which will be made available through cashfurnished by the Sponsor on the Date of Deposit. Thiscash may exceed the interest which would accrue to the

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First Settlement Date. The Trustee has agreed to pay forany amounts necessary to cover any excess and will bereimbursed when funds become available from interestpayments on the related bonds. Also, since interest onany “when, as and if issued” bonds does not beginaccruing to the benefit of Unitholders until the date ofdelivery, the Trustee may reduce its fee and pay Trustexpenses in order to maintain or approach the sameestimated net annual interest income during the first yearof the Trust’s operations as described under “Summaryof Essential Financial Information”.

No FDIC Guarantee. An investment in your Trustis not a deposit of any bank and is not insured orguaran