SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-6
For Registration Under the Securities Act of 1933 of Securities
of Unit Investment Trusts Registered on Form N-8B-2
A. Exact Name of Trust: FT 526
B. Name of Depositor: NIKE SECURITIES L.P.
C. Complete Address of Depositor's 1001 Warrenville Road
Principal Executive Offices: Lisle, Illinois 60532
D. Name and Complete Address of
Agents for Service: NIKE SECURITIES L.P.
Attention: James A. Bowen
Suite 300
1001 Warrenville Road
Lisle, Illinois 60532
CHAPMAN & CUTLER
Attention: Eric F. Fess
111 West Monroe Street
Chicago, Illinois 60603
E. Title of Securities
Being Registered: An indefinite number of
Units pursuant to Rule
24f-2 promulgated under
the Investment Company Act
of 1940, as amended.
F. Approximate Date of Proposed
Sale to the Public: ____ Check if it is
proposed that this filing
will become effective on
_____ at ____ p.m.
pursuant to Rule 487.
The registrant hereby amends this Registration Statement on
such date or dates as may be necessary to delay its effective
date until the registrant shall file a further amendment which
specifically states that this Registration Statement shall
thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the Registration Statement
shall become effective on such date as the Commission, acting
pursuant to said Section 8(a), may determine.
SUBJECT TO COMPLETION, DATED APRIL 6, 2001
First Trust U.S. Treasury Securities Portfolio, Short-Term, Series 9
First Trust U.S. Treasury Securities Portfolio, Short-Intermediate,
Series 10
FT 526
FT 526 is a series of a unit investment trust, the FT Series. FT 526
consists of two separate portfolios listed above (each, a "Trust," and
collectively, the "Trusts"). First Trust U.S. Treasury Securities
Portfolio, Short-Term, Series 9 (the "Short-Term Trust") invests in a
"laddered" portfolio of U.S. Treasury obligations ("Securities")
designed to return approximately 20% of a Unit holder's principal in
2002, 40% in 2003 and 40% in 2004. First Trust U.S. Treasury Securities
Portfolio, Short-Intermediate, Series 10 (the "Short-Intermediate
Trust") invests in a laddered portfolio of U.S. Treasury obligations
designed to return approximately 20% of a Unit holder's principal
beginning in 2003 and continuing each year through 2007. Each Trust
seeks to provide safety of capital and current monthly income.
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED
OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED.
WE MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED
WITH THE SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS
PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES AND IS NOT
SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER
OR SALE IS NOT PERMITTED.
First Trust (R)
1-800-621-9533
The date of this prospectus is April __, 2001
Page 1
Table of Contents
Summary of Essential Information 3
Fee Table 4
Report of Independent Auditors 5
Statements of Net Assets 6
Schedules of Investments 7
The FT Series 9
Portfolio 9
Risk Factors 10
Public Offering 10
Distribution of Units 12
The Sponsor's Profits 13
The Secondary Market 13
How We Purchase Units 13
Expenses and Charges 13
Tax Status 14
Retirement Plans 15
Rights of Unit Holders 15
Distributions 16
Redeeming Your Units 17
Removing Securities from a Trust 18
Amending or Terminating the Indenture 18
Information on the Sponsor, Trustee and Evaluator 19
Other Information 20
Page 2
Summary of Essential Information
FT 526
At the Opening of Business on the Initial Date of Deposit of the
Securities-April __, 2001
Sponsor: Nike Securities L.P.
Trustee: The Chase Manhattan Bank
Evaluator: Securities Evaluation Services, Inc.
U.S. Treasury U.S. Treasury
Securities Portfolio Securities Portfolio
Short-Term Short-Intermediate
Series 9 Series 10
____________ ____________
Initial Number of Units
Fractional Undivided Interest in the Trust per Unit 1/ 1/
Principal Amount (Par Value) of Securities per Unit (1) $ 10.000 $ 10.000
Public Offering Price:
Aggregate Offering Price Evaluation of Securities per Unit (2) $ $
Maximum Sales Charge of 1.5% of the Public Offering
Price per Unit ( % of the net amount invested) $ $
Public Offering Price per Unit (3) $ $
Sponsor's Initial Repurchase Price per Unit (4) $ $
Redemption Price per Unit (based on aggregate underlying value of Securities) (4) $ $
Weighted Average Maturity of the Securities 2.63 years 4.03 years
First Settlement Date April __, 2001 April __, 2001
Mandatory Termination Date (5) December 31, 2004 March 30, 2007
Distributions (6):
Estimated Net Annual Interest Income per Unit $ $
Initial Distribution per Unit $ $
Estimated Regular Distribution per Unit $ $
Estimated Current Return (7) % %
Estimated Long-Term Return (7) % %
CUSIP Number 30266F 623 30266F 631
Security Code
Ticker Symbol
____________
<FN>
(1) Because certain of the Securities will, in certain circumstances, be
sold, redeemed or mature in accordance with their terms, the Unit value
at the Mandatory Termination Date will not equal the Principal Amount
(Par Value) of Securities per Unit stated above.
(2) Each Security is valued at its aggregate underlying value.
Evaluations for purposes of determining the purchase, sale or redemption
price of Units are made as of the close of trading on the New York Stock
Exchange ("NYSE") (generally 4:00 p.m. Eastern time) on each day on
which it is open (the "Evaluation Time").
(3) The Public Offering Price shown above reflects the value of the
Securities on the business day prior to the Initial Date of Deposit. No
investor will purchase Units at this price. The price you pay for your
Units will be based on their valuation at the Evaluation Time on the
date your purchase your Units. On the Initial Date of Deposit, the
Public Offering Price per Unit will not include any accrued interest on
the Securities. After this date, a pro rata share of any accrued
interest on the Securities will be included.
(4) Until the earlier of six months after the Initial Date of Deposit or
the end of the initial offering period the Sponsor's Initial Repurchase
Price per Unit and the Redemption Price per Unit will include the
estimated organization costs per Unit set forth under "Fee Table." After
such date, the Sponsor's Repurchase Price and Redemption Price per Unit
will not include such estimated organization costs. See "Redeeming Your
Units."
(5) See "Amending or Terminating the Indenture."
(6) Distributions will be paid on the last business day of each month
("Distribution Date") to Unit holders of record on the fifteenth day of
such month ("Distribution Record Date"). The amount of the Estimated
Regular Distributions per Unit was calculated on the basis of the
Estimated Net Annual Interest Income per Unit less the estimated annual
expenses and divided by twelve. The Initial Distribution per Unit
differs from estimated regular distributions because it does not
represent a full month period. Each Unit holder will receive the Initial
Distribution per Unit on May 31, 2001. Estimated Regular Distributions
per Unit will occur monthly, beginning on June 30, 2001. The actual
distribution you receive will vary from that set forth above with
changes in the Trust's fees and expenses and with the sale or redemption
of Securities. See "Fee Table" and "Expenses and Charges." Distributions
from the Principal Account will be made monthly if the amount available
for distribution equals at least $1.00 per 100 Units. Notwithstanding,
distributions of funds in the Principal Account, if any, will be made in
December of each year.
(7) Estimated Current Return is calculated by dividing Estimated Net
Annual Interest Income per Unit by the Public Offering Price. Estimated
Long-Term Return is calculated using a formula which (1) factors in the
relative weightings of the market values, yields (which take into
account the amortization of premiums and the accretion of discounts) and
estimated retirements of the Securities; and (2) takes into account a
compounding factor, the sales charge and expenses. There is no assurance
that the Estimated Current and Long-Term Returns set forth above will be
realized in the future because the various components used to calculate
these figures, such as Trust expenses, market values and estimated
retirements of the Securities, will change. In addition, neither rate
reflects the true return you will receive, which will be lower, because
neither includes the effect of certain delays in distributions.
Estimated cash flows for the Trusts are available from the Sponsor upon
request.
</FN>
Page 3
Fee Table
This Fee Table describes the fees and expenses that you may, directly or
indirectly, pay if you buy and hold Units of a Trust. See "Public
Offering" and "Expenses and Charges." Although the First Trust U.S.
Treasury Securities Portfolio, Short-Term, Series 9 has a term of
approximately three and one-half years and the First Trust U.S. Treasury
Securities Portfolio, Short-Intermediate, Series 10 has a term of
approximately six years, and each is a unit investment trust rather than
a mutual fund, this information allows you to compare fees.
U.S. Treasury U.S. Treasury
Securities Portfolio Securities Portfolio
Short-Term, Series 9 Short-Intermediate, Series 10
Amount Amount
per Unit per Unit
________ ________
Unit Holder Transaction Expenses
(as a percentage of public offering price)
Maximum sales charge imposed on purchase 1.50% $ 1.50% $
======== ======== ======== ========
Organization Costs
(as a percentage of public offering price)
Estimated organization costs %(a) $ %(a) $
======== ======== ======== ========
Estimated Annual Trust Operating Expenses(b)
(as a percentage of average net assets)
Portfolio supervision, bookkeeping, administrative
and evaluation fees %(c) $ %(c) $
Trustee's fee and other operating expenses % %
________ ________ ________ ________
Total % $ % $
======== ======== ======== ========
Example
This example is intended to help you compare the cost of investing in
the Trusts with the cost of investing in other investment products. The
example assumes that you invest $10,000 in the Trusts for the periods
shown and sell all your Units at the end of those periods. The example
also assumes a 5% return on your investment each year and that the
Trusts' operating expenses stay the same. The example does not take into
consideration transaction fees which may be charged by certain
broker/dealers for processing redemption requests. Although your actual
costs may vary, based on these assumptions your costs would be:
1 Year 3 Years 5 Years
_______ _______ _______
First Trust U.S. Treasury Securities Portfolio, Short-Term, Series 9 $ $ $
First Trust U.S. Treasury Securities Portfolio, Short-Intermediate, Series 10 $ $ $
The example will not differ if you hold rather than sell your Units at
the end of each period.
_______________________
<FN>
(a) You will bear all or a portion of the costs incurred in organizing
the Trusts. These estimated organization costs are included in the price
you pay for your Units and will be deducted from the assets of each
Trust at the earlier of six months after the Initial Date of Deposit or
the end of the initial offering period.
(b) With the exception of the evaluation fees, each of the fees listed
herein is assessed on a fixed dollar amount per Unit basis which, as a
percentage of average net assets, will vary over time.
(c) The Evaluator will receive a fee of $25 per daily evaluation. We
have made an estimate of the number of Units we expect to create in
order to determine the per Unit amount of the Evaluator's fee. To the
extent our estimate differs from the actual Units created, the per Unit
amount of the Evaluator fee will vary.
</FN>
Page 4
Report of Independent Auditors
The Sponsor, Nike Securities L.P., and Unit Holders
FT 526
We have audited the accompanying statements of net assets, including the
schedules of investments, of FT 526, comprising the First Trust U.S.
Treasury Securities Portfolio, Short-Term, Series 9 and First Trust U.S.
Treasury Securities Portfolio, Short-Intermediate, Series 10 (the
"Trusts"), as of the opening of business on April __, 2001 (Initial Date
of Deposit). These statements of net assets are the responsibility of
the Trusts' Sponsor. Our responsibility is to express an opinion on
these statements of net assets based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that
we plan and perform the audit to obtain reasonable assurance about
whether the statements of net assets are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the statements of net assets. Our procedures
included confirmation of the irrevocable letter of credit held by The
Chase Manhattan Bank, the Trustee, and allocated among the Trusts for
the purchase of Securities, as shown in the statements of net assets, as
of the opening of business on April __, 2001, by correspondence with the
Trustee. An audit also includes assessing the accounting principles used
and significant estimates made by the Sponsor, as well as evaluating the
overall presentation of the statements of net assets. We believe that
our audits of the statements of net assets provide a reasonable basis
for our opinion.
In our opinion, the statements of net assets referred to above present
fairly, in all material respects, the financial position of FT 526,
comprising the First Trust U.S. Treasury Securities Portfolio, Short-
Term, Series 9 and First Trust U.S. Treasury Securities Portfolio, Short-
Intermediate, Series 10, at the opening of business on April __, 2001
(Initial Date of Deposit) in conformity with accounting principles
generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Chicago, Illinois
April __, 2001
Page 5
Statements of Net Assets
FT 526
At the Opening of Business on the Initial Date of Deposit-April __, 2001
U.S. Treasury Securities Portfolio
Short-Term Short-Intermediate
Series 9 Series 10
NET ASSETS
Investments in Securities represented by purchase contracts (1)(2) $ $
Accrued interest on underlying Securities (2)(3)
________ ________
Less liability for reimbursement to Sponsor for organization costs (4) ( ) ( )
Less distributions payable (3) ( ) ( )
_________ _________
Net assets $ $
========= =========
Outstanding units
ANALYSIS OF NET ASSETS
Cost to investors (5) $ $
Less maximum sales charge (5) ( ) ( )
Less estimated reimbursement to Sponsor for organization costs (4) ( ) ( )
_________ _________
Net assets $ $
========= =========
________________
<FN>
NOTES TO STATEMENTS OF NET ASSETS
(1) Aggregate cost of the Securities listed under "Schedule of
Investments" is based on their aggregate underlying value.
(2) An irrevocable letter of credit issued by The Chase Manhattan Bank,
of which $400,000 will be allocated between the two Trusts, has been
deposited with the Trustee as collateral, covering the monies necessary
for the purchase of the Securities according to their purchase
contracts, accrued interest to the Initial Date of Deposit and accrued
interest from the Initial Date of Deposit to the expected dates of
delivery of the Securities for each Trust in the dollar amounts set
forth below:
Aggregate Accrued Interest Accrued Interest
Offering Price of to Initial to Expected Dates
Securities Date of Deposit of Delivery
First Trust U.S. Treasury Securities Portfolio, Short-Term, Series 9 $ $ $
First Trust U.S. Treasury Securities Portfolio, Short-Intermediate, $ $ $
Series 10
(3) The Trustee will advance to the Trusts the amount of net interest
accrued to the First Settlement Date which will be distributed to the
Sponsor as Unit holder of record.
(4) A portion of the Public Offering Price consists of an amount
sufficient to reimburse the Sponsor for all or a portion of the costs of
establishing the Trusts. These costs have been estimated at $.0200 per
Unit per Trust. A payment will be made as of the earlier of six months
after the Initial Date of Deposit or the end of the initial offering
period to an account maintained by the Trustee from which the obligation
of the investors to the Sponsor will be satisfied. To the extent that
actual organization costs are greater than the estimated amount, only
the estimated organization costs added to the Public Offering Price will
be reimbursed to the Sponsor and deducted from the assets of a Trust.
(5) The aggregate cost to investors in each Trust includes a maximum
sales charge computed at the rate of 1.5% of the Public Offering Price
per Unit (equivalent to % of the net amount invested), assuming no
reduction of sales charge as set forth under "Public Offering."
</FN>
Page 6
Schedule of Investments
First Trust U.S. Treasury Securities Portfolio, Short-Term, Series 9
FT 526
At the Opening of Business on the
Initial Date of Deposit of the Securities-April __, 2001
Aggregate
Principal Amount of Cost of Securities
U.S. Treasury Obligations (1) Coupon Rate Maturity to the Trust (2)
_________________ _____________ _______ _________
$ $
_________ _________
$ $
========= =========
__________
<FN>
See "Notes to Schedules of Investments" on page 8.
</FN>
Page 7
Schedule of Investments
First Trust U.S. Treasury Securities Portfolio, Short-Intermediate,
Series 10
FT 526
At the Opening of Business on the
Initial Date of Deposit of the Securities-April __, 2001
Aggregate
Principal Amount of Cost of Securities
U.S. Treasury Obligations (1) Coupon Rate Maturity to the Trust (2)
_________________ _____________ _______ _________
$ $
_________ _________
$ $
========= =========
__________
<FN>
NOTES TO SCHEDULES OF INVESTMENTS
(1) All Securities are represented by regular way contracts to purchase
such Securities for the performance of which an irrevocable letter of
credit has been deposited with the Trustee. We entered into purchase
contracts for the Securities on April __, 2001 and we expect that they
will all settle on or prior to April __, 2001.
(2) The cost of the Securities to the Trust represents the aggregate
underlying value with respect to the Securities acquired (generally
determined by the aggregate offering price of the Securities on the
business day before the Initial Date of Deposit). The valuation of the
Securities has been determined by the Evaluator, certain shareholders of
which are officers of the Sponsor. The cost of the Securities to us and
our profit or loss (which is the difference between the cost of the
Securities to us and the cost of the Securities to a Trust) are set
forth below:
Cost of Securities Profit
to Sponsor (Loss)
___________ ________
First Trust U.S. Treasury Securities Portfolio, Short-Term, Series 9 $ $
First Trust U.S. Treasury Securities Portfolio, Short-Intermediate, Series
10
In addition, the aggregate bid price of the Securities on the
business day before the Initial Date of Deposit and the annual interest
income per Trust were $ and $ , respectively, for the First Trust
U.S. Treasury Securities Portfolio, Short-Term, Series 9 and $ and $
, respectively, for the First Trust U.S. Treasury Securities
Portfolio, Short-Intermediate, Series 10.
</FN>
Page 8
The FT Series
The FT Series Defined.
We, Nike Securities L.P. (the "Sponsor"), have created hundreds of
similar yet separate series of a unit investment trust which we have
named the FT Series. The series to which this prospectus relates, FT
526, consists of two separate portfolios set forth below:
- - First Trust U.S. Treasury Securities Portfolio, Short-Term, Series 9
- - First Trust U.S. Treasury Securities Portfolio, Short-Intermediate,
Series 10
Each Trust was created under the laws of the State of New York by a
Trust Agreement (the "Indenture") dated the Initial Date of Deposit.
This agreement, entered into among Nike Securities L.P., as Sponsor, The
Chase Manhattan Bank as Trustee, First Trust Advisors L.P. as Portfolio
Supervisor and Securities Evaluation Services, Inc. as Evaluator,
governs the operation of the Trusts.
YOU MAY GET MORE SPECIFIC DETAILS ON SOME OF THE INFORMATION IN THIS
PROSPECTUS IN AN "INFORMATION SUPPLEMENT" BY CALLING THE TRUSTEE AT 1-
800-682-7520.
How We Created the Trusts.
On the Initial Date of Deposit, we deposited U.S. Treasury obligations
with the Trustee and in turn, the Trustee delivered documents to us
representing our ownership of the Trusts, in the form of units ("Units").
After the Initial Date of Deposit, we may deposit additional Securities
in the Trusts, or cash (including a letter of credit) with instructions
to buy more Securities, in order to create new Units for sale. If we
create additional Units, we will attempt, to the extent practicable, to
maintain the percentage relationship established among the Securities on
the Initial Date of Deposit (as set forth in "Schedule of Investments"
for each Trust), and not the actual percentage relationship existing on
the day we are creating new Units, since the two may differ. This
difference may be due to the sale, redemption or liquidation of any of
the Securities.
Since the prices of the Securities will fluctuate daily, the ratio of
Securities in a Trust, on a market value basis, will also change daily.
The portion of Securities represented by each Unit will not change as a
result of the deposit of additional Securities or cash in a Trust. If we
deposit cash, you and new investors may experience a dilution of your
investment. This is because prices of Securities will fluctuate between
the time of the cash deposit and the purchase of the Securities, and
because the Trusts pay the associated brokerage fees. To reduce this
dilution, the Trusts will try to buy the Securities as close to the
Evaluation Time and as close to the evaluation price as possible. In
addition, because the Trusts pay the brokerage fees associated with
their creation of new Units and with the sale of Securities to meet
redemption and exchange requests, frequent redemption and exchange
activity will likely result in higher brokerage expenses.
An affiliate of the Trustee may receive these brokerage fees or the
Trustee may retain and pay us (or our affiliate) to act as agent for the
Trusts to buy Securities. If we or an affiliate of ours act as agent to
the Trusts we will be subject to the restrictions under the Investment
Company Act of 1940, as amended.
We cannot guarantee that a Trust will keep its present size and
composition for any length of time. Securities will mature or may
periodically be redeemed or sold under certain circumstances, and the
proceeds from these events will be used to meet Trust obligations or
distributed to Unit holders, but will not be reinvested. However,
Securities will not be sold to take advantage of market fluctuations or
changes in anticipated rates of appreciation or depreciation, or if the
Securities no longer meet the criteria by which they were selected. You
will not be able to dispose of any of the Securities in a Trust or vote
the Securities. As the holder of the Securities, the Trustee will vote
all of the Securities and will do so based on our instructions.
Neither we nor the Trustee will be liable for a failure in any of the
Securities. However, if a contract for the purchase of any of the
Securities initially deposited in a Trust fails, unless we can purchase
substitute Securities ("Replacement Securities") we will refund to you
that portion of the purchase price and sales charge resulting from the
failed contract on the next Distribution Date. Any Replacement Security
a Trust acquires will be identical to those from the failed contract.
Portfolio
Objectives.
Each Trust's objective is to provide investors with safety of capital
and current monthly income which is exempt from state and local income
taxes. Each Trust invests in a portfolio of taxable, interest-bearing
U.S. Treasury obligations which are scheduled to mature on different
dates. This structure is designed to return a specific amount of
principal to investors after each maturity. Laddering the portfolios in
Page 9
this manner provides investors the ability to take advantage of changing
market conditions and the potential to meet shorter-term investment goals.
The First Trust U.S. Treasury Securities Portfolio, Short-Term, Series 9
invests in a laddered portfolio of U.S. Treasury obligations with
maturities ranging from 2002 to 2004. The Short-Term Trust is designed
to return approximately 20% of your principal in 2002, 40% in 2003 and
40% in 2004.
The First Trust U.S. Treasury Securities Portfolio, Short-Intermediate,
Series 10 invests in a laddered portfolio of U.S. Treasury obligations
with maturities ranging from 2003 to 2007. The Short-Intermediate Trust
is designed to return approximately 20% of your principal in 2003, 20%
in 2004, 20% in 2005, 20% in 2006 and 20% in 2007.
The Securities in each Trust are direct obligations of the United States
and are backed by its full faith and credit, although the Units of the
Trusts are not so backed. U.S. Treasury obligations are not rated, but
in the opinion of the Sponsor have credit characteristics comparable to
those of securities rated "AAA" by nationally recognized rating
agencies. Units of the Trusts, however, are not rated.
See "Risk Factors" for a discussion of the risks of investing in a Trust.
Risk Factors
Price Volatility. The Trusts invest in U.S. Treasury obligations. U.S.
Treasury obligations are not affected by credit risk but are subject to
changes in market value resulting from changes in interest rates. The
value of the Securities will be adversely affected by decreases in bond
prices and increases in interest rates, not only because increases in
interest rates generally decrease values, but also because increased
interest rates may indicate an economic slowdown.
Because the Trusts are not managed, the Trustee will not sell Securities
in response to or in anticipation of market fluctuations, as is common
in managed investments. As with any investment, we cannot guarantee that
the performance of a Trust will be positive over any period of time or
that you won't lose money. Units of the Trusts are not deposits of any
bank and are not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.
Interest. There is no guarantee that the issuers of the Securities will
be able to satisfy their interest payment obligations to the Trust over
the life of the Trust.
U.S. Treasury Obligations. U.S. Treasury obligations are direct
obligations of the United States which are backed by the full faith and
credit of the United States. Certain Securities in the Trusts may have
been purchased on the Initial Date of Deposit at prices of less than
their par value at maturity, indicating a market discount. Other
Securities in the Trusts may have been purchased on the Initial Date of
Deposit at prices greater than their par value at maturity, indicating a
market premium. The coupon interest rate of bonds purchased at a market
discount was lower than current market interest rates of newly issued
bonds of comparable rating and type and the coupon interest rate of
bonds purchased at a market premium was higher than current market
interest rates of newly issued bonds of comparable rating and type.
Generally, the value of bonds purchased at a market discount will
increase in value faster than bonds purchased at a market premium if
interest rates decrease. Conversely, if interest rates increase, the
value of bonds purchased at a market discount will decrease faster than
bonds purchased at a market premium. However, premium bonds are more
likely to be called or redeemed with declines in interest rates.
Legislation/Litigation. From time to time, various legislative
initiatives are proposed in the United States and abroad which may have
a negative impact on the Securities. In addition, litigation regarding
the Securities or the U.S. government may negatively impact the share
prices of these Securities. We cannot predict what impact any pending or
proposed legislation or pending or threatened litigation will have on
the value of the Securities.
Public Offering
The Public Offering Price.
You may buy Units at the Public Offering Price, the per Unit price of
which is comprised of the following:
- - The aggregate underlying value of the Securities;
- - The amount of any cash in the Interest and Principal Accounts;
- - Net interest accrued but unpaid on the Securities after the First
Settlement Date to the date of settlement; and
- - The sales charge.
The price you pay for your Units will differ from the amount stated
under "Summary of Essential Information" due to various factors,
including fluctuations in the offering prices of the Securities, changes
in the value of the Interest and/or Principal Accounts and as interest
on the Securities accrues.
Page 10
Although you are not required to pay for your Units until three business
days following your order (the "date of settlement"), you may pay before
then. You will become the owner of Units ("Record Owner") on the date of
settlement if payment has been received. If you pay for your Units
before the date of settlement, we may use your payment during this time
and it may be considered a benefit to us, subject to the limitations of
the Securities Exchange Act of 1934.
Organization Costs. Securities purchased with the portion of the Public
Offering Price intended to be used to reimburse the Sponsor for the
Trust's organization costs (including costs of preparing the
registration statement, the Indenture and other closing documents,
registering Units with the Securities and Exchange Commission ("SEC")
and states, the initial audit of the Trust portfolio, legal fees and the
initial fees and expenses of the Trustee) will be purchased in the same
proportionate relationship as all the Securities contained in a Trust.
Securities will be sold to reimburse the Sponsor for a Trust's
organization costs at the earlier of six months after the Initial Date
of Deposit or the end of the initial offering period (a significantly
shorter time period than the life of the Trusts). During the period
ending with the earlier of six months after the Initial Date of Deposit
or the end of the initial offering period, there may be a decrease in
the value of the Securities. To the extent the proceeds from the sale of
these Securities are insufficient to repay the Sponsor for Trust
organization costs, the Trustee will sell additional Securities to allow
a Trust to fully reimburse the Sponsor. In that event, the net asset
value per Unit will be reduced by the amount of additional Securities
sold. Although the dollar amount of the reimbursement due to the Sponsor
will remain fixed and will never exceed the per Unit amount set forth
for each Trust in "Statements of Net Assets," this will result in a
greater effective cost per Unit to Unit holders for the reimbursement to
the Sponsor. To the extent actual organization costs are less than the
estimated amount, only the actual organization costs will be deducted
from the assets of a Trust. When Securities are sold to reimburse the
Sponsor for organization costs, the Trustee will sell such Securities,
to the extent practicable, which will maintain the same proportionate
relationship among the Securities contained in a Trust as existed prior
to such sale.
Accrued Interest.
Accrued interest represents unpaid interest on a bond from the last day
it paid interest. Interest on the Securities generally is paid semi-
annually, although a Trust accrues such interest daily. Because each
Trust always has an amount of interest earned but not yet collected, the
Public Offering Price of Units will have added to it the proportionate
share of accrued interest to the date of settlement. You will receive
the amount, if any, of accrued interest included in your purchase price
on the next distribution date. In addition, if you sell or redeem your
Units you will be entitled to receive your proportionate share of the
accrued interest from the purchaser of your Units.
Minimum Purchase.
The minimum amount you can purchase of a Trust is $1,000 worth of Units
($500 if you are purchasing Units for your Individual Retirement Account
or any other qualified retirement plan).
Sales Charges.
The maximum sales charge, which you will pay at the time of purchase, is
equal to 1.5% of the Public Offering Price (equivalent to % of the
net amount invested).
Discounts for Certain Persons.
If you invest at least $250,000 (except if you are purchasing for a
"wrap fee account" as described below), the maximum sales charge is
reduced, as follows:
If you Invest Your Maximum
per Trust Sales Charge
(in thousands):* will be:
_________________ ________________
$250 but less than $500 1.45%
$500 but less than $1,000 1.40%
$1,000 or more 1.25%
* The breakpoint sales charges are also applied on a Unit basis
utilizing a breakpoint equivalent in the above table of $10 per Unit and
will be applied on whichever basis is more favorable to the investor.
The breakpoints will be adjusted to take into consideration purchase
orders stated in dollars which cannot be completely fulfilled due to the
requirement that only whole Units be issued.
The reduced sales charge for quantity purchases will apply only to
purchases made by the same person on any one day from any one dealer. We
will consider Units you purchase in the name of your spouse or your
child under 21 years of age to be purchases by you for determining the
reduced sales charge. The reduced sales charge will also apply to a
trustee or other fiduciary purchasing Units for a single trust estate or
single fiduciary account. You must inform your dealer of any combined
purchases before the sale in order to be eligible for the reduced sales
charge. Any reduced sales is the responsibility of the party making the
sale.
Investors purchasing Units through registered broker/dealers who charge
periodic fees in lieu of commissions or who charge for financial
planning, investment advisory or asset management services or provide
these services as part of an investment account where a comprehensive
Page 11
"wrap fee" or similar charge is imposed, may purchase Units at the
Public Offering Price, less the concession we would typically allow such
broker/dealer. See "Distribution of Units-Dealer Concessions."
Employees, officers and directors (and immediate family members) of the
Sponsor, our related companies, dealers and their affiliates, and
vendors providing services to us may purchase Units at the Public
Offering Price less the applicable dealer concession. Immediate family
members include spouses, children, grandchildren, parents, grandparents,
siblings, mothers-in-law, fathers-in-law, sons-in-law, daughters-in-law,
brothers-in-law and sisters-in-law, and trustees, custodians or
fiduciaries for the benefit of such persons.
The Sponsor and certain dealers may establish a schedule where
employees, officers and directors of such dealers can purchase Units of
a Trust at the Public Offering Price less the established schedule
amount, which is designed to compensate such dealers for activities
relating to the sale of Units (the "Employee Dealer Concession").
The Value of the Securities.
The Evaluator will determine the aggregate underlying value of the
Securities in a Trust as of the Evaluation Time on each business day and
will adjust the Public Offering Price of the Units according to this
valuation. This Public Offering Price will be effective for all orders
received before the Evaluation Time on each such day. If we or the
Trustee receive orders for purchases, sales or redemptions after that
time, or on a day which is not a business day, they will be held until
the next determination of price. The term "business day" as used in this
prospectus will exclude Saturdays, Sundays and certain holidays on which
the NYSE is closed.
The aggregate underlying value of the Securities in a Trust will be
determined by the Evaluator as follows:
a) On the basis of current market offering prices for the Securities
obtained from dealers or brokers who customarily deal in bonds
comparable to those held by a Trust;
b) If such prices are not available for any of the Securities, on the
basis of current market offering prices of comparable bonds;
c) By determining the value of the Securities on the offering side of
the market by appraisal; or
d) By any combination of the above.
After the initial offering period is over, the aggregate underlying
value of the Securities in a Trust will be determined as set forth
above, except that bid prices are used instead of offering prices when
necessary. The offering price of the Securities may be expected to be
greater than the bid price by approximately 1/16 to 1/4 of 1% of the
aggregate principal amount of such Securities.
Distribution of Units
We intend to qualify Units of the Trust for sale in a number of states.
All Units will be sold at the then current Public Offering Price.
Dealer Concessions.
Dealers and other selling agents can purchase Units at prices which
represent a concession or agency commission of 1.0% of the Public
Offering Price per Unit. Dealers and other selling agents who sell Units
of a Trust during the initial offering period in the dollar amounts
shown below will be entitled to the following additional sales
concessions as a percentage of the Public Offering Price:
Total Sales Additional
per Trust Concession
(in millions)
_____________________ __________
$1 but less than $10 .05%
$10 or more .10%
Dealers and other selling agents who, during any consecutive 12-month
period, sell at least $1.75 billion worth of primary market units of
unit investment trusts sponsored by us will receive a concession of
$30,000 in the month following the achievement of this level. We reserve
the right to change the amount of concessions or agency commissions from
time to time. Certain commercial banks may be making Units of a Trust
available to their customers on an agency basis. A portion of the sales
charge paid by these customers is kept by or given to the banks in the
amounts shown above.
Award Programs.
From time to time we may sponsor programs which provide awards to a
dealer's or selling agent's registered representatives who have sold a
minimum number of Units during a specified time period. We may also pay
fees to qualifying dealers for services or activities which are meant to
result in sales of Units of the Trusts. In addition, we will pay to
dealers who sponsor sales contests or recognition programs that conform
to our criteria, or participate in our sales programs, amounts equal to
no more than the total applicable sales charges on Units sold by such
person during such programs. We make these payments out of our own
assets, and not out of Trust assets. These programs will not change the
price you pay for your Units.
Page 12
Investment Comparisons.
From time to time we may compare the estimated returns of the Trusts
(which may show performance net of the expenses and charges the Trusts
would have incurred) and returns over specified periods of other similar
trusts we sponsor in our advertising and sales materials, with (1)
returns on other taxable investments such as the common stocks
comprising various market indexes, corporate or U.S. Government bonds,
bank CDs and money market accounts or funds, (2) performance data from
Morningstar Publications, Inc. or (3) information from publications such
as Money, The New York Times, U.S. News and World Report, BusinessWeek,
Forbes or Fortune. The investment characteristics of the Trusts differ
from other comparative investments. You should not assume that these
performance comparisons will be representative of a Trust's future
relative performance.
The Sponsor's Profits
We will receive a gross sales commission equal to the maximum sales
charge per Unit less any reduction as stated in "Public Offering." Also,
any difference between our cost to purchase the Securities and the price
at which we sell them to a Trust is considered a profit or loss (see
Note 2 of "Notes to Schedules of Investments"). During the initial
offering period, dealers and others may also realize profits or sustain
losses as a result of fluctuations in the Public Offering Price they
receive when they sell the Units.
In maintaining a market for the Units, any difference between the price
at which we purchase Units and the price at which we sell or redeem them
will be a profit or loss to us.
The Secondary Market
Although not obligated, we intend to maintain a market for the Units
after the initial offering period and continuously offer to purchase
Units at prices based on the Redemption Price per Unit.
We will pay all expenses to maintain a secondary market, except the
Evaluator fees, Trustee costs to transfer and record the ownership of
Units and costs incurred in annually updating the Trusts' registration
statements. We may discontinue purchases of Units at any time. IF YOU
WISH TO DISPOSE OF YOUR UNITS, YOU SHOULD ASK US FOR THE CURRENT MARKET
PRICES BEFORE MAKING A TENDER FOR REDEMPTION TO THE TRUSTEE.
How We Purchase Units
The Trustee will notify us of any tender of Units for redemption. If our
bid is equal to or greater than the Redemption Price per Unit, we may
purchase the Units. You will receive your proceeds from the sale no
later than if they were redeemed by the Trustee. We may tender Units we
hold to the Trustee for redemption as any other Units. If we elect not
to purchase Units, the Trustee may sell tendered Units in the over-the-
counter market, if any. However, the amount you will receive is the same
as you would have received on redemption of the Units.
Expenses and Charges
The estimated annual expenses of the Trusts are listed under "Fee
Table." If actual expenses exceed the estimate, the appropriate Trust
will bear the excess. The Trustee will pay operating expenses of a Trust
from the Interest Account of such Trust if funds are available, and then
from the Principal Account. The Interest and Principal Accounts are
noninterest-bearing to Unit holders, so the Trustee may earn interest on
these funds, thus benefiting from their use.
As Sponsor, we will be compensated for providing bookkeeping and other
administrative services to the Trusts, and will receive brokerage fees
when the Trusts use us (or our affiliates) as agent in buying or selling
Securities. Legal, typesetting, electronic filing and regulatory filing
fees and expenses associated with updating the Trusts' registration
statements yearly are also now chargeable to the Trusts. Historically,
we paid these fees and expenses. First Trust Advisors L.P., an affiliate
of ours, acts as Portfolio Supervisor and will receive the fee set forth
under "Fee Table" for providing portfolio supervisory services to the
Trust. In providing portfolio supervisory services, the Portfolio
Supervisor may purchase research services from a number of sources,
which may include dealers of the Trust.
The fees payable to us, the Portfolio Supervisor and Trustee are based
on the largest aggregate number of Units of the Trust outstanding at any
time during the calendar year, except during the initial offering
period, in which case these fees are calculated based on the largest
number of Units outstanding during the period for which compensation is
paid. These fees may be adjusted for inflation without Unit holders'
approval, but in no case will the annual fees paid to us or our
Page 13
affiliates for providing a given service to all unit investment trusts
for which we provide such services exceed the actual cost of providing
such services in such year. The Evaluator will receive a fee of $25 per
day per Trust for providing evaluation services to the Trusts.
In addition to a Trust's operating expenses, and those fees described
above, each Trust may also incur the following charges:
- - All legal expenses of the Trustee according to its responsibilities
under the Indenture;
- - The expenses and costs incurred by the Trustee to protect a Trust and
your rights and interests;
- - Fees for any extraordinary services the Trustee performed under the
Indenture;
- - Payment for any loss, liability or expense the Trustee incurred
without negligence, bad faith or willful misconduct on its part, in
connection with its acceptance or administration of a Trust;
- - Payment for any loss, liability or expenses we incurred without
negligence, bad faith or willful misconduct in acting as Depositor of a
Trust; and/or
- - All taxes and other government charges imposed upon the Securities or
any part of a Trust.
The above expenses and the Trustee's annual fee are secured by a lien on
the respective Trust. In addition, if there is not enough cash in the
Interest or Principal Accounts of a Trust, the Trustee has the power to
sell Securities to make cash available to pay these charges, which may
result in capital gains or losses to you. See "Tax Status."
The Trusts will be audited annually. So long as we are making a
secondary market for Units, we will bear the cost of these annual audits
to the extent the cost exceeds $0.0050 per Unit. Otherwise, a Trust will
pay for the audit. You can request a copy of the audited financial
statements from the Trustee.
Tax Status
Federal Tax Status.
This section summarizes some of the main U.S. federal income tax
consequences of owning Units of a Trust. This section is current as of
the date of this prospectus. Tax laws and interpretations change
frequently, and these summaries do not describe all of the tax
consequences to all taxpayers. For example, these summaries generally do
not describe your situation if you are a non-U.S. person, a
broker/dealer, or other investor with special circumstances. In
addition, this section does not describe your state or foreign taxes. As
with any investment, you should consult your own tax professional about
your particular consequences. In addition, the Internal Revenue Service
issued new withholding and reporting regulations effective January 1,
2001. Foreign investors should consult their own tax advisors regarding
the tax consequences of these regulations.
Trust Status.
Each Trust will not be taxed as a corporation for federal income tax
purposes. As a Unit owner, you will be treated as the owner of a pro
rata portion of the Securities and other assets held by a Trust, and as
such you will be considered to have received a pro rata share of income
(i.e., interest, accruals of original issue discount and market
discount, and capital gains, if any) from each Security when such income
is considered to be received by a Trust.
Your Tax Basis and Income or Loss upon Disposition.
If your Trust disposes of Securities, you will generally recognize gain
or loss. If you dispose of your Units or redeem your Units for cash, you
will also generally recognize gain or loss. To determine the amount of
this gain or loss, you must subtract your tax basis in the related
Securities from your share of the total proceeds received in the
transaction. You can generally determine your initial tax basis in each
Security or other Trust asset by apportioning the cost of your Units,
generally including sales charges, among each Security or other Trust
asset ratably according to their value on the date you acquire your
Units. In certain circumstances, however, you may have to adjust your
tax basis after you acquire your Units (for example, in the case of
original issue discount, premium and accrued interest, as discussed
below).
If you are an individual, the maximum marginal federal tax rate for net
capital gain is generally 20% (10% for certain taxpayers in the lowest
tax bracket). For tax years beginning after December 31, 2000, the 20%
rate is reduced to 18% and the 10% rate is reduced to 8% for long-term
gains from most property with a holding period of more than five years.
Net capital gain equals net long-term capital gain minus net short-term
capital loss for the taxable year. Capital gain or loss is long-term if
the holding period for the asset is more than one year and is short-term
if the holding period for the asset is one year or less. You must
exclude the date you purchase your Units or the date the Trust purchases
a Security to determine the holding period. The tax rates for capital
gains realized from assets held for one year or less are generally the
same as for ordinary income. The Internal Revenue Code may, however,
treat certain capital gains as ordinary income in special situations
(for example, in the case of gain attributable to market discount).
Page 14
Discount, Accrued Interest and Premium.
Some Securities may have been sold with original issue discount. This
generally means that the Securities were originally issued at a price
below their face (or par) value. Original issue discount accrues on a
daily basis and generally is treated as interest income for federal
income tax purposes. The basis of your Units and of each Security which
was issued with original issue discount must be increased as original
issue discount accrues.
Some Securities may have been purchased at a market discount. Market
discount is generally the excess of the stated redemption price at
maturity for the Security over the purchase price of the Security (not
including unaccrued original issue discount). Market discount can arise
based on the price the Trust pays for a Security or on the price you pay
for your Units. Market discount is taxed as ordinary income. You will
recognize this income when the Trust receives principal payments on the
Security, when the Security is sold or redeemed, or when you sell or
redeem your Units. Alternatively, you may elect to include market
discount in taxable income as it accrues. Whether or not you make this
election will affect how you calculate your basis and the timing of
certain interest expense deductions.
Alternatively, some Securities may have been purchased at a premium.
Generally, if the tax basis of your pro rata portion of any Security
exceeds the amount payable at maturity, such excess is considered
premium. You may elect to amortize bond premium. If you make this
election, you may reduce your interest income received on the Security
by the amount of the premium that is amortized and your tax basis will
be reduced.
If the price of your Units included accrued interest on a Security, you
must include the accrued interest in your tax basis in that Security.
When the Trust receives this accrued interest, you must treat it as a
return of capital and reduce your tax basis in the Security.
This discussion provides only the general rules with respect to the tax
treatment of original issue discount, market discount and premium. The
rules, however, are complex and special rules apply in certain
circumstances. For example, the accrual of market discount or premium
may differ from the discussion set forth above in the case of Securities
that were issued with original issue discount.
Limitations on the Deductibility of Trust Expenses.
Generally, for federal income tax purposes, you must take into account
your full pro rata share of the Trust's income, even if some of that
income is used to pay Trust expenses. You may deduct your pro rata share
of each expense paid by the Trust to the same extent as if you directly
paid the expense. You may be required to treat some or all of the
expenses of the Trust as miscellaneous itemized deductions. However,
individuals may only deduct certain miscellaneous itemized deductions to
the extent they exceed 2% of adjusted gross income.
Foreign, State and Local Taxes.
If you are a foreign investor (i.e., an investor other than a U.S.
citizen or resident or a U.S. corporation, partnership, estate or
trust), you will not be subject to U.S. federal income taxes, including
withholding taxes, on interest income or on any gain from the sale or
redemption of your Units, provided that certain conditions are met. You
should consult your tax advisor with respect to the conditions you must
meet in order to be exempt for U.S. tax purposes.
Under the existing income tax laws of the State and City of New York,
the Trust will not be taxed as a corporation, and the income of the
Trust will be treated as the income of the Unit holders in the same
manner as for Federal income tax purposes. You should consult your tax
advisor regarding potential foreign, state or local taxation with
respect to your Units.
Retirement Plans
You may purchase Units of a Trust for:
- - Individual Retirement Accounts,
- - Keogh Plans,
- - Pension funds, and
- - Other tax-deferred retirement plans.
Generally, the federal income tax on capital gains and income received
in each of the above plans is deferred until you receive distributions.
These distributions are generally treated as ordinary income but may, in
some cases, be eligible for special averaging or tax-deferred rollover
treatment. Before participating in these plans, you should consult your
attorney or tax advisor. Brokerage firms and other financial
institutions offer these plans with varying fees and charges.
Rights of Unit Holders
Unit Ownership.
The Trustee will treat as Record Owner of Units persons registered as
such on its books. It is your responsibility to notify the Trustee when
you become Record Owner, but normally your broker/dealer provides this
Page 15
notice. You may elect to hold your Units in either certificated or
uncertificated form.
Certificated Units. When you purchase your Units you can request that
they be evidenced by certificates, which will be delivered shortly after
your order. Certificates will be issued in fully registered form,
transferable only on the books of the Trustee in denominations of one
Unit or any multiple thereof. You can transfer or redeem your
certificated Units by endorsing and surrendering the certificate to the
Trustee, along with a written instrument of transfer. You must sign your
name exactly as it appears on the face of the certificate with your
signature guaranteed by an eligible institution. In certain cases the
Trustee may require additional documentation before they will transfer
or redeem your Units.
You may be required to pay a nominal fee to the Trustee for each
certificate reissued or transferred, and to pay any government charge
that may be imposed for each transfer or exchange. If a certificate gets
lost, stolen or destroyed, you may be required to furnish indemnity to
the Trustee to receive replacement certificates. You must surrender
mutilated certificates to the Trustee for replacement.
Uncertificated Units. You may also choose to hold your Units in
uncertificated form. If you choose this option, the Trustee will
establish an account for you and credit your account with the number of
Units you purchase. Within two business days of the issuance or transfer
of Units held in uncertificated form, the Trustee will send you:
- - A written initial transaction statement containing a description of
your Trust;
- - A list of the number of Units issued or transferred;
- - Your name, address and Taxpayer Identification Number ("TIN");
- - A notation of any liens or restrictions of the issuer and any adverse
claims; and
- - The date the transfer was registered.
Uncertificated Units may be transferred the same way as certificated
Units, except that no certificate needs to be presented to the Trustee.
Also, no certificate will be issued when the transfer takes place unless
you request it. You may at any time request that the Trustee issue
certificates for your Units.
Unit Holder Reports.
In connection with each distribution, the Trustee will provide you with
a statement detailing the per Unit amount of interest (if any)
distributed. After the end of each calendar year, the Trustee will
provide you with the following information:
- - The amount of interest received by your Trust less deductions for
payment of applicable taxes, fees and Trust expenses, redemption of
Units and the balance remaining on the last business day of the calendar
year;
- - The dates Securities were sold and the net proceeds received from
such sales less deduction for payment of applicable taxes, fees and
Trust expenses, redemption of Units and the balance remaining on the
last business day of the calendar year;
- - The Securities held and the number of Units outstanding on the last
business day of the calendar year;
- - The Redemption Price per Unit on the last business day of the
calendar year; and
- - The amounts actually distributed during the calendar year from the
Interest and Principal Accounts, separately stated.
You may request from the Trustee copies of the evaluations of the
Securities as prepared by the Evaluator to enable you to comply with
federal and state tax reporting requirements.
Distributions
You will begin receiving distributions on your Units only after you
become a Record Owner. The Trustee will credit any interest received on
the Trust's Securities to the Interest Account of the Trust. All other
receipts, such as return of capital, are credited to the Principal
Account of the Trust.
After deducting the amount of accrued interest the Trustee advanced to
us as Unit holder of record as of the First Settlement Date, the Trustee
will distribute an amount substantially equal to your pro rata share of
the balance of the Interest Account calculated on the basis of one-
twelfth of the estimated annual amount of interest received in the
Income Account after deducting estimated expenses on or near the
Distribution Dates to Unit holders of record on the preceding
Distribution Record Date. See "Summary of Essential Information."
Because interest is not received by the Trusts at a constant rate
throughout the year, the distributions you receive may be more or less
than the amount credited to the Interest Account as of the Distribution
Record Date. In order to minimize fluctuations in distributions, the
Trustee is authorized to advance such amounts as may be necessary to
provide distributions of approximately equal amounts. The Trustee will
be reimbursed, without interest, for any such advances from funds in the
Interest Account at the next Distribution Record Date. The Trustee will
Page 16
distribute amounts in the Principal Account on the last day of each
month to Unit holders of record on the fifteenth day of each month
provided the amount equals at least $1.00 per 100 Units. However,
amounts in the Principal Account from the sale of Securities designated
to meet redemptions of Units or to pay expenses will not be distributed.
If the Trustee does not have your TIN, it is required to withhold a
certain percentage of your distribution and deliver such amount to the
Internal Revenue Service ("IRS"). You may recover this amount by giving
your TIN to the Trustee, or when you file a tax return. However, you
should check your statements to make sure the Trustee has your TIN to
avoid this "back-up withholding
Within a reasonable time after the Trust is terminated you will receive
the pro rata share of the money from the disposition of the Securities.
The Trustee may establish reserves (the "Reserve Account") within a
Trust to cover anticipated state and local taxes or any governmental
charges to be paid out of such Trust.
Universal Distribution Option. You may elect to have your principal and
interest distributions automatically distributed to any other investment
vehicle of which you have an existing account. If you elect this option,
the Trustee will notify you of each distribution made pursuant to this
option. You may elect to terminate your participation at any time by
notifying the Trustee in writing.
Redeeming Your Units
You may redeem all or a portion of your Units at any time by sending the
certificates representing the Units you want to redeem to the Trustee at
its unit investment trust office. If your Units are held in
uncertificated form, you need only to deliver a request for redemption
to the Trustee. In either case, the certificates or the redemption
request must be properly endorsed with proper instruments of transfer
and signature guarantees as explained in "Rights of Unit Holders-Unit
Ownership" (or by providing satisfactory indemnity if the certificates
were lost, stolen, or destroyed). No redemption fee will be charged, but
you are responsible for any governmental charges that apply. Certain
broker/dealers may charge a transaction fee for processing redemption
requests. Units redeemed directly through the Trustee are not subject to
such transaction fees. Three business days after the day you tender your
Units (the "Date of Tender") you will receive cash in an amount for each
Unit equal to the Redemption Price per Unit calculated at the Evaluation
Time on the Date of Tender.
The Date of Tender is considered to be the date on which the Trustee
receives your certificates or redemption request (if such day is a day
the NYSE is open for trading). However, if your certificates or
redemption request are received after 4:00 p.m. Eastern time (or after
any earlier closing time on a day on which the NYSE is scheduled in
advance to close at such earlier time), the Date of Tender is the next
day the NYSE is open for trading.
Any amounts paid on redemption representing interest will be withdrawn
from the Interest Account of the Trust if funds are available for that
purpose, or from the Principal Account. All other amounts paid on
redemption will be taken from the Principal Account of the Trust. The
IRS will require the Trustee to withhold a portion of your redemption
proceeds if the Trustee does not have your TIN, as generally discussed
under "Distributions."
The Trustee may sell Securities to make funds available for redemption.
If Securities are sold, the size and diversification of a Trust will be
reduced. These sales may result in lower prices than if the Securities
were sold at a different time.
Your right to redeem Units (and therefore, your right to receive
payment) may be delayed:
- - If the NYSE is closed (other than customary weekend and holiday
closings);
- - If the SEC determines that trading on the NYSE is restricted or that
an emergency exists making sale or evaluation of the Securities not
reasonably practical; or
- - For any other period permitted by SEC order.
The Trustee is not liable to any person for any loss or damage which may
result from such a suspension or postponement.
The Redemption Price.
The Redemption Price per Unit is determined by the Trustee by:
adding
1. cash in the Interest and Principal Accounts not designated to
purchase Securities;
2. the aggregate underlying value of the Securities held in a Trust; and
3. accrued interest on the Securities.
deducting
1. any applicable taxes or governmental charges that need to be paid out
of a Trust;
2. any amounts owed to the Trustee for its advances;
Page 17
3. estimated accrued expenses of a Trust, if any;
4. cash held for distribution to Unit holders of record of a Trust as of
the business day before the evaluation being made; and
5. other liabilities incurred by a Trust; and
dividing
1. the result by the number of outstanding Units of a Trust.
Until the earlier of six months after the Initial Date of Deposit or the
end of the initial offering period, the Redemption Price per Unit will
include estimated organization costs as set forth under "Fee Table."
Removing Securities from a Trust
The portfolio of the Trusts are not managed. However, we may, but are
not required to, direct the Trustee to dispose of a Security in certain
limited circumstances, including situations in which:
- - The issuer of the Security has defaulted in the payment of principal
or interest on the Securities;
- - Any action or proceeding seeking to restrain or enjoin the payment of
principal or interest on the Securities has been instituted;
- - The issuer of the Security has breached a covenant which would affect
the payment of principal or interest on the Security, the issuer's
credit standing, or otherwise damage the sound investment character of
the Security;
- - The issuer has defaulted on the payment of any other of its
outstanding obligations;
- - Such Securities are the subject of an advanced refunding;
- - Such factors arise which, in our opinion, adversely affect the tax or
exchange control status of the Securities; or
- - The price of the Security has declined to such an extent, or such
other credit factors exist, that in our opinion keeping the Security
would be harmful to the Trust.
If a Security defaults in the payment of principal or interest and no
provision for payment is made, the Trustee must notify us of this fact
within 30 days. If we fail to instruct the Trustee whether to sell or
hold the Security within 30 days of our being notified, the Trustee may,
in its discretion, sell any defaulted Securities and will not be liable
for any depreciation or loss incurred thereby.
Except in the limited instance in which a Trust acquires Replacement
Securities, as described in "The FT Series," a Trust may not acquire any
securities or other property other than the Securities. The Trustee, on
behalf of a Trust, will reject any offer for new or exchanged securities
or property in exchange for a Security, except that we may instruct the
Trustee to accept such an offer or to take any other action with respect
thereto as we may deem proper if the issuer is in default with respect
to such Securities or in our written opinion the issuer will likely
default in respect to such Securities in the foreseeable future. Any
obligations received in exchange or substitution will be held by the
Trustee subject to the terms and conditions in the Indenture to the same
extent as Securities originally deposited in a Trust. We may get advice
from the Portfolio Supervisor before reaching a decision regarding the
receipt of new or exchanged securities or property. The Trustee may
retain and pay us or an affiliate of ours to act as agent for a Trust to
facilitate selling Securities, exchanged securities or property from a
Trust. If we or our affiliate act in this capacity, we will be held
subject to the restrictions under the Investment Company Act of 1940, as
amended.
The Trustee may sell Securities that we designate; or, without our
direction, in its own discretion, in order to meet redemption requests
or pay expenses. We will maintain a list with the Trustee of which
Securities should be sold. We may consider sales of units of unit
investment trusts which we sponsor in making recommendations to the
Trustee on the selection of broker/dealers to execute the Trust's
portfolio transactions, or when acting as agent for the Trust in
acquiring or selling Securities on behalf of the Trust.
Amending or Terminating the Indenture
Amendments. The Indenture may be amended by us and the Trustee without
your consent:
- - To cure ambiguities;
- - To correct or supplement any defective or inconsistent provision;
- - To make any amendment required by any governmental agency; or
- - To make other changes determined not to be materially adverse to your
best interests (as determined by us and the Trustee).
Termination. As provided by the Indenture, the Trusts will terminate on
the Mandatory Termination Date as stated in the "Summary of Essential
Information" for each Trust. The Trusts may be terminated prior to the
Mandatory Termination Date:
Page 18
- - Upon the consent of 100% of the Unit holders;
- - If the value of the Securities owned by a Trust as shown by any
evaluation is less than 10% of the aggregate principal amount of
Securities deposited in such Trust during the initial offering period
(the "Discretionary Liquidation Amount"); or
- - In the event that Units of a Trust not yet sold aggregating more than
60% of the Units of such Trust are tendered for redemption by
underwriters, including the Sponsor.
In the event of termination, the Trustee will send prior written notice
thereof to all Unit holders which will specify how you should tender
your certificates, if any, to the Trustee. If a Trust is terminated due
to this last reason, we will refund to each purchaser of Units of such
Trust the entire sales charge paid by such purchaser. For various
reasons, a Trust may be reduced below the Discretionary Liquidation
Amount and could therefore be terminated prior to the Mandatory
Termination Date.
Unless terminated earlier, the Trustee will begin to sell Securities in
connection with the termination of a Trust during the period beginning
nine business days prior to, and no later than, the Mandatory
Termination Date. We will determine the manner, timing and execution of
the sale of Securities as part of the termination of such Trust. Because
the Trustee must sell the Securities within a relatively short period of
time, the sale of Securities as part of the termination process may
result in a lower amount than might otherwise be realized if such sale
were not required at this time.
You will receive a cash distribution from the sale of the remaining
Securities, along with your interest in the Interest and Principal
Accounts, within a reasonable time after your Trust is terminated.
Regardless of the distribution involved, the Trustee will deduct from
each Trust any accrued costs, expenses, advances or indemnities provide
by the Indenture, including estimated compensation of the Trustee and
costs of liquidation and any amounts required as a reserve to pay any
taxes or other governmental charges.
Information on the Sponsor, Trustee and Evaluator
The Sponsor.
We, Nike Securities L.P., specialize in the underwriting, trading and
wholesale distribution of unit investment trusts under the "First Trust"
brand name and other securities. An Illinois limited partnership formed
in 1991, we act as Sponsor for successive series of:
- - The First Trust Combined Series
- - FT Series (formerly known as The First Trust Special Situations Trust)
- - The First Trust Insured Corporate Trust
- - The First Trust of Insured Municipal Bonds
- - The First Trust GNMA
First Trust introduced the first insured unit investment trust in 1974.
To date we have deposited more than $35 billion in First Trust unit
investment trusts. Our employees include a team of professionals with
many years of experience in the unit investment trust industry.
We are a member of the National Association of Securities Dealers, Inc.
and Securities Investor Protection Corporation. Our principal offices
are at 1001 Warrenville Road, Lisle, Illinois 60532; telephone number
(630) 241-4141. As of December 31, 2000, the total partners' capital of
Nike Securities L.P. was $21,676,108 (audited).
This information refers only to us and not to the Trusts or to any
series of the Trusts or to any other dealer. We are including this
information only to inform you of our financial responsibility and our
ability to carry out our contractual obligations. We will provide more
detailed financial information on request.
Code of Ethics. The Sponsor and the Trusts have adopted a code of ethics
requiring the Sponsor's employees who have access to information on
Trust transactions to report personal securities transactions. The
purpose of the code is to avoid potential conflicts of interest and to
prevent fraud, deception or misconduct with respect to the Trusts.
The Trustee.
The Trustee is The Chase Manhattan Bank, with its principal executive
office located at 270 Park Avenue, New York, New York 10017 and its unit
investment trust office at 4 New York Plaza, 6th Floor, New York, New
York, 10004-2413. If you have questions regarding the Trusts, you may
call the Customer Service Help Line at 1-800-682-7520. The Trustee is
supervised by the Superintendent of Banks of the State of New York, the
Federal Deposit Insurance Corporation and the Board of Governors of the
Federal Reserve System.
The Trustee has not participated in selecting the Securities; it only
provides administrative services.
Limitations of Liabilities of Sponsor and Trustee.
Neither we nor the Trustee will be liable for taking any action or for
not taking any action in good faith according to the Indenture. We will
also not be accountable for errors in judgment. We will only be liable
Page 19
for our own willful misfeasance, bad faith, gross negligence (ordinary
negligence in the Trustee's case) or reckless disregard of our
obligations and duties. The Trustee is not liable for any loss or
depreciation when the Securities are sold. If we fail to act under the
Indenture, the Trustee may do so, and the Trustee will not be liable for
any action it takes in good faith under the Indenture.
The Trustee will not be liable for any taxes or other governmental
charges or interest on the Securities which the Trustee may be required
to pay under any present or future law of the United States or of any
other taxing authority with jurisdiction. Also, the Indenture states
other provisions regarding the liability of the Trustee.
If we do not perform any of our duties under the Indenture or are not
able to act or become bankrupt, or if our affairs are taken over by
public authorities, then the Trustee may:
- - Appoint a successor sponsor, paying them a reasonable rate not more
than that stated by the SEC,
- - Terminate the Indenture and liquidate the Trusts, or
- - Continue to act as Trustee without terminating the Indenture.
The Evaluator.
The Evaluator is Securities Evaluation Services, Inc. The Evaluator's
address is 531 East Roosevelt Road, Wheaton, Illinois 60187.
The Trustee, Sponsor and Unit holders may rely on the accuracy of any
evaluation prepared by the Evaluator. The Evaluator will make
determinations in good faith based upon the best available information.
However, the Evaluator will not be liable to the Trustee, Sponsor or
Unit holders for errors in judgment.
Other Information
Legal Opinions.
Our counsel is Chapman and Cutler, 111 W. Monroe St., Chicago, Illinois,
60603. They have passed upon the legality of the Units offered hereby
and certain matters relating to federal tax law. Carter, Ledyard &
Milburn acts as the Trustee's counsel, as well as special New York tax
counsel for the Trusts.
Experts.
The Trusts' statements of net assets, including the schedules of
investments, as of the opening of business on the Initial Date of
Deposit included in this prospectus and elsewhere in the registration
statement have been audited by Deloitte & Touche LLP, independent
auditors, as stated in their report appearing herein and elsewhere in
the registration statement, and are included in reliance upon the
reports of such firm given upon their authority as experts in accounting
and auditing.
Supplemental Information.
If you write or call the Trustee, you will receive free of charge
supplemental information about this Series, which has been filed with
the SEC and to which we have referred throughout. This information
states more specific risk information about the Trusts.
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Page 23
FIRST TRUST(R)
First Trust U.S. Treasury Securities Portfolio, Short-Term, Series 9
First Trust U.S. Treasury Securities Portfolio, Short-Intermediate,
Series 10
FT 526
Sponsor:
NIKE SECURITIES L.P.
1001 Warrenville Road, Suite 300
Lisle, Illinois 60532
1-630-241-4141
Trustee:
THE CHASE MANHATTAN BANK
4 New York Plaza, 6th floor
New York, New York 10004-2413
1-800-682-7520
24-Hour Pricing Line:
1-800-446-0132
This prospectus contains information relating to the above-mentioned
unit investment trusts, but does not contain all of the information
about this investment company as filed with the Securities and Exchange
Commission in Washington, D.C. under the:
- - Securities Act of 1933 (file no. 333-_____) and
- - Investment Company Act of 1940 (file no. 811-05903)
Information about the Trusts, including their Codes of Ethics, can be
reviewed and copied at the Securities and Exchange Commission's Public
Reference Room in Washington D.C. Information regarding the operation of
the Commission's Public Reference Room may be obtained by calling the
Commission at
1-202-942-8090.
Information about the Trusts is available on the EDGAR Database on the
Commission's Internet site at http://www.sec.gov.
To obtain copies at prescribed rates -
Write: Public Reference Section of the Commission
450 Fifth Street, N.W.
Washington, D.C. 20549-0102
e-mail address: publicinfo@sec.gov
April __, 2001
PLEASE RETAIN THIS PROSPECTUS FOR FUTURE REFERENCE
Page 24
First Trust (R)
The FT Series
Information Supplement
This Information Supplement provides additional information concerning
the structure, operations and risks of the unit investment trust
contained in FT 526 not found in the prospectus for the Trusts. This
Information Supplement is not a prospectus and does not include all of
the information you should consider before investing in the Trusts. This
Information Supplement should be read in conjunction with the prospectus
for the Trusts in which you are considering investing.
This Information Supplement is dated April __, 2001. Capitalized terms
have been defined in the Prospectus.
Table of Contents
Risk Factors
General 1
Risk Factors
General. The Trusts may consist of Securities which, in many cases, do
not have the benefit of covenants which would prevent the issuer from
engaging in capital restructurings or borrowing transactions in
connection with corporate acquisitions, leveraged buyouts or
restructurings which could have the effect of reducing the ability of
the issuer to meet its debt obligations and might result in the ratings
of the Securities and the value of the underlying Trust portfolio being
reduced.
Certain of the Securities in the Trusts may have been acquired at a
market discount from par value at maturity. The coupon interest rates on
the discount Securities at the time they were purchased and deposited in
the Trusts were lower than the current market interest rates for newly
issued Securities of comparable rating and type. If such interest rates
for newly issued comparable Securities increase, the market discount of
previously issued Securities will become greater, and if such interest
rates for newly issued comparable Securities decline, the market
discount of previously issued Securities will be reduced, other things
being equal. Investors should also note that the value of Securities
purchased at a market discount will increase in value faster than
Securities purchased at a market premium if interest rates decrease.
Conversely, if interest rates increase, the value of Securities
purchased at a market discount will decrease faster than Securities
purchased at a market premium. In addition, if interest rates rise, the
prepayment risk of higher yielding, premium Securities and the
prepayment benefit for lower yielding, discount Securities will be
reduced. A discount Security held to maturity will have a larger portion
of its total return in the form of capital gain and less in the form of
interest income than a comparable Security newly issued at current
market rates. Market discount attributable to interest changes does not
indicate a lack of market confidence in the issue. Neither the Sponsor
nor the Trustee shall be liable in any way for any default, failure or
defect in any of the Securities.
Certain of the Securities in the Trusts may be original issue discount
Securities or zero coupon Securities. Under current law, the original
issue discount, which is the difference between the stated redemption
price at maturity and the issue price of the Securities, is deemed to
accrue on a daily basis and the accrued portion is treated as interest
income for Federal income tax purposes. On sale or redemption, any gain
realized that is in excess of the earned portion of original issue
discount will be taxable as capital gain unless the gain is attributable
to market discount in which case the accretion of market discount is
taxable as ordinary income. See "Tax Status" in the prospectus. The
current value of an original discount Security reflects the present
value of its stated redemption price at maturity. The market value tends
to increase in greater increments as the Securities approach maturity.
The effect of owning deep discount zero coupon Securities which do not
make current interest payments is that a fixed yield is earned not only
on the original investment, but also, in effect, on all earnings during
the life of the discount obligation. This implicit reinvestment of
earnings at the same rate eliminates the risk of being unable to
reinvest the income on such obligations at a rate as high as the
implicit yield on the discount obligation, but at the same time
eliminates the holder's ability to reinvest at higher rates in the
future. For this reason, the zero coupon Securities are subject to
substantially greater price fluctuations during periods of changing
interest rates than are securities of comparable quality which make
regular interest payments.
Certain of the Securities in the Trusts may have been acquired at a
market premium from par value at maturity. The coupon interest rates on
the premium Securities at the time they were purchased and deposited in
the Trusts were higher than the current market interest rates for newly
issued Securities of comparable rating and type. If such interest rates
Page 1
for newly issued and otherwise comparable Securities decrease, the
market premium of previously issued Securities will be increased, and if
such interest rates for newly issued comparable Securities increase, the
market premium of previously issued Securities will be reduced, other
things being equal. The current returns of Securities trading at a
market premium are initially higher than the current returns of
comparable Securities of a similar type issued at currently prevailing
interest rates because premium Securities tend to decrease in market
value as they approach maturity when the face amount becomes payable.
Because part of the purchase price is thus returned not at maturity but
through current income payments, early redemption of a premium Security
at par or early prepayments of principal will result in a reduction in
yield. Redemption pursuant to call provisions generally will, and
redemption pursuant to sinking fund provisions may, occur at times when
the redeemed Securities have an offering side valuation which represents
a premium over par or for original issue discount Securities a premium
over the accreted value. To the extent that the Securities were
deposited in the Trusts at a price higher than the price at which they
are redeemed, this will represent a loss of capital when compared to the
original Public Offering Price of the Units. Because premium Securities
generally pay a higher rate of interest than Securities priced at or
below par, the effect of the redemption of premium Securities would be
to reduce Estimated Net Annual Unit Income by a greater percentage than
the par amount of such Securities bears to the total par amount of
Securities in the Trusts. Although the actual impact of any such
redemptions that may occur will depend upon the specific Securities that
are redeemed, it can be anticipated that the Estimated Net Annual Unit
Income will be significantly reduced after the dates on which such
Securities are eligible for redemption.
Because certain of the Securities may from time to time under certain
circumstances be sold or redeemed or will mature in accordance with
their terms and because the proceeds from such events will be
distributed to Unit holders and will not be reinvested, no assurance can
be given that the Trusts will retain for any length of time its present
size and composition. Neither the Sponsor nor the Trustee shall be
liable in any way for any default, failure or defect in any Security.
Certain of the Securities contained in the Trusts may be subject to
being called or redeemed in whole or in part prior to their stated
maturities pursuant to optional redemption provisions, sinking fund
provisions or otherwise. A Security subject to optional call is one
which is subject to redemption or refunding prior to maturity at the
option of the issuer. A refunding is a method by which a Security issue
is redeemed, at or before maturity, by the proceeds of a new Security
issue. A Security subject to sinking fund redemption is one which is
subject to partial call from time to time at par or from a fund
accumulated for the scheduled retirement of a portion of an issue prior
to maturity. The exercise of redemption or call provisions will (except
to the extent the proceeds of the called Securities are used to pay for
Unit redemptions) result in the distribution of principal and may result
in a reduction in the amount of subsequent interest distributions; it
may also affect the Estimated Long-Term Return and the Estimated Current
Return on Units of the Trusts. Redemption pursuant to call provisions is
more likely to occur, and redemption pursuant to sinking fund provisions
may occur, when the Securities have an offering side valuation which
represents a premium over par or for original issue discount Securities
a premium over the accreted value. Unit holders may recognize capital
gain or loss upon any redemption or call.
The contracts to purchase Securities delivered to the Trustee represent
obligations by issuers or dealers to deliver Securities to the Sponsor
for deposit in the Trusts. Contracts are typically settled and the
Securities delivered within a few business days subsequent to the
Initial Date of Deposit. The percentage of the aggregate principal
amount of the Securities of the Trusts relating to "when, as and if
issued" Securities or other Securities with delivery dates after the
date of settlement for a purchase made on the Initial Date of Deposit,
if any, is indicated in the section for each Trust entitled "Schedule of
Investments" in the prospectus. Interest on "when, as and if issued" and
delayed delivery Securities begins accruing to the benefit of Unit
holders on their dates of delivery. Because "when, as and if issued"
Securities have not yet been issued, as of the Initial Date of Deposit
the Trusts are subject to the risk that the issuers thereof might decide
not to proceed with the offering of such Securities or that the delivery
of such Securities or the delayed delivery Securities may be delayed. If
such Securities or replacement Securities are not acquired by the Trusts
or if their delivery is delayed, the Estimated Long-Term Return and the
Estimated Current Return shown in the prospectus may be reduced.
Page 2
MEMORANDUM
Re: FT 526
The only difference of consequence (except as described
below) between FT 516, which is the current fund, and FT 526, the
filing of which this memorandum accompanies, is the change in the
series number. The list of securities comprising the Fund, the
evaluation, record and distribution dates and other changes
pertaining specifically to the new series, such as size and
number of Units in the Fund and the statement of condition of the
new Fund, will be filed by amendment.
1940 ACT
FORMS N-8A AND N-8B-2
These forms were not filed, as the Form N-8A and Form N-8B-2
filed in respect of Templeton Growth and Treasury Trust, Series 1
and subsequent series (File No. 811-05903) related also to the
subsequent series of the Fund.
1933 ACT
PROSPECTUS
The only significant changes in the Prospectus from the
Series 516 Prospectuses relate to the series number and size and
the date and various items of information which will be derived
from and apply specifically to the securities deposited in the
Fund.
CONTENTS OF REGISTRATION STATEMENT
ITEM A Bonding Arrangements of Depositor:
Nike Securities L.P. is covered by a Broker's Fidelity
Bond, in the total amount of $1,000,000, the insurer
being National Union Fire Insurance Company of
Pittsburgh.
ITEM B This Registration Statement on Form S-6 comprises the
following papers and documents:
The facing sheet
The Prospectus
The signatures
Exhibits
S-1
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933,
the Registrant, FT 526 has duly caused this Registration
Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the Village of Lisle and State of
Illinois on April 6, 2001.
FT 526
(Registrant)
By: NIKE SECURITIES L.P.
(Depositor)
By Robert M. Porcellino
Senior Vice President
Pursuant to the requirements of the Securities Act of 1933,
this Registration Statement has been signed below by the
following person in the capacity and on the date indicated:
NAME TITLE* DATE
David J. Allen Sole Director of
Nike Securities April 6, 2001
Corporation, the
General Partner of
Nike Securities L.P. Robert M. Porcellino
Attorney-in-Fact**
___________________________
* The title of the person named herein represents his capacity
in and relationship to Nike Securities L.P., the Depositor.
** An executed copy of the related power of attorney was filed
with the Securities and Exchange Commission in connection
with Amendment No. 1 to form S-6 of The First Trust Combined
Series 258 (File No. 33-63483) and the same is hereby
incorporated by this reference.
S-2
CONSENTS OF COUNSEL
The consents of counsel to the use of their names in the
Prospectus included in this Registration Statement will be
contained in their respective opinions to be filed as Exhibits
3.1, 3.2, 3.3 and 3.4 of the Registration Statement.
CONSENT OF DELOITTE & TOUCHE LLP
The consent of Deloitte & Touche LLP to the use of its name
and to the reference to such firm in the Prospectus included in
this Registration Statement will be filed by amendment.
CONSENT OF FIRST TRUST ADVISORS L.P.
The consent of First Trust Advisors L.P. to the use of its
name in the Prospectus included in the Registration Statement is
filed as Exhibit 4.1 to the Registration Statement.
S-3
EXHIBIT INDEX
1.1 Form of Standard Terms and Conditions of Trust for The
First Trust Special Situations Trust, Series 22 and
certain subsequent Series, effective November 20, 1991
among Nike Securities L.P., as Depositor, United States
Trust Company of New York as Trustee, Securities
Evaluation Service, Inc., as Evaluator, and Nike
Financial Advisory Services L.P. as Portfolio Supervisor
(incorporated by reference to Amendment No. 1 to Form S-6
[File No. 33-43693] filed on behalf of The First Trust
Special Situations Trust, Series 22).
1.1.1* Form of Trust Agreement for FT 526 among Nike Securities
L.P., as Depositor, The Chase Manhattan Bank, as Trustee
and First Trust Advisors L.P., as Evaluator and Portfolio
Supervisor.
1.2 Copy of Certificate of Limited Partnership of Nike
Securities L.P. (incorporated by reference to Amendment
No. 1 to Form S-6 [File No. 33-42683] filed on behalf of
The First Trust Special Situations Trust, Series 18).
1.3 Copy of Amended and Restated Limited Partnership
Agreement of Nike Securities L.P. (incorporated by
reference to Amendment No. 1 to Form S-6 [File No.
33-42683] filed on behalf of The First Trust Special
Situations Trust, Series 18).
1.4 Copy of Articles of Incorporation of Nike Securities
Corporation, the general partner of Nike Securities L.P.,
Depositor (incorporated by reference to Amendment No. 1
to Form S-6 [File No. 33-42683] filed on behalf of The
First Trust Special Situations Trust, Series 18).
1.5 Copy of By-Laws of Nike Securities Corporation, the
general partner of Nike Securities L.P., Depositor
(incorporated by reference to Amendment No. 1 to Form S-6
[File No. 33-42683] filed on behalf of The First Trust
Special Situations Trust, Series 18).
2.1 Copy of Certificate of Ownership (included in Exhibit 1.1
filed herewith on page 2 and incorporated herein by reference).
2.2 Copy of Code of Ethics (incorporated by reference to
Amendment No. 1 to form S-6 [File No. 333-31176] filed on behalf
of FT 415).
3.1* Opinion of counsel as to legality of Securities being
registered.
S-4
3.2* Opinion of counsel as to Federal income tax status of
Securities being registered.
3.3* Opinion of counsel as to New York income tax status of
Securities being registered.
3.4* Opinion of counsel as to advancement of funds by Trustee.
4.1* Consent of First Trust Advisors L.P.
6.1 List of Directors and Officers of Depositor and other
related information (incorporated by reference to
Amendment No. 1 to Form S-6 [File No. 33-42683] filed on
behalf of The First Trust Special Situations Trust,
Series 18).
7.1 Power of Attorney executed by the Director listed on page
S-3 of this Registration Statement (incorporated by
reference to Amendment No. 1 to Form S-6 [File No.
33-63483] filed on behalf of The First Trust Combined
Series 258).
___________________________________
* To be filed by amendment.
S-5