1 EXHIBIT 17(B) PROXY VAN KAMPEN AMERICAN CAPITAL TEXAS TAX FREE INCOME FUND SPECIAL MEETING OF SHAREHOLDERS PROXY SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES The undersigned holder of shares of beneficial interest, par value $.01 per share (the "Shares"), of the VAN KAMPEN AMERICAN CAPITAL TEXAS TAX FREE INCOME FUND, a Delaware business trust (the "Texas Fund"), hereby appoints Don G. Powell, Dennis J. McDonnell and Ronald A. Nyberg, and each of them, with full power of substitution and revocation, as proxies to represent the undersigned at the Special Meeting of Shareholders to be held at the offices of Van Kampen American Capital, Inc., One Parkview Plaza, Oakbrook Terrace, Illinois 60181, on Tuesday, September 10, 1996 at 2:00 p.m., and any and all adjournments thereof (the "Special Meeting"), and thereat to vote all Shares which the undersigned would be entitled to vote, with all powers the undersigned would possess if personally present, in accordance with the following instructions. If more than one of the proxies, or their substitutes, are present at the Special Meeting or any adjournment thereof, they jointly (or, if only one is present and voting then that one) shall have authority and may exercise all powers granted hereby. This Proxy, when properly executed, will be voted in accordance with the instructions marked hereon by the undersigned. IF NO SPECIFICATION IS MADE, THIS PROXY WILL BE VOTED "FOR" EACH OF THE PROPOSALS DESCRIBED HEREIN AND IN THE DISCRETION OF THE PROXIES UPON SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING. Account No. No. of Shares Class of Shares Proxy No. 1. FOR AGAINST ABSTAIN ------ ------ ------ The proposal to approve the Agreement and Plan of Reorganization pursuant to which the Texas Fund would (i) ------ ------ ------ transfer all of its assets to the Van Kampen American Capital Municipal Income Fund (the "Municipal Fund") in exchange solely for Class A, B and C shares of beneficial interest of the Municipal Fund and the Municipal Fund's assumption of the liabilities of the Texas Fund, (ii) distribute such shares of the Municipal Fund to the holders of shares of the Texas Fund and (iii) be dissolved, all as more fully described in the Prospectus/Proxy Statement. 2. FOR AGAINST ABSTAIN ------ ------ ------ The proposal to approve a new investment advisory agreement for the Texas Fund, as more fully described in ------ ------ ------ the Prospectus/Proxy Statement. 3. FOR AGAINST ABSTAIN ------ ------ ------ To act upon any and all other business which may come before the Special Meeting or any adjournment thereof. ------ ------ ------ The undersigned hereby acknowledges receipt of the accompanying Notice of Special Meeting and Proxy Statement for the Special Meeting to be held on September 10, 1996. Please sign this Proxy exactly as your name or names appear on the books of the Texas Fund. When signing as attorney, trustee, executor, administrator, custodian, guardian or corporate officer, please give full title. If shares are held jointly, each holder should sign. - ----------------------------------------------------- ----------------------------------- , Shareholder signature 1996 Date - ----------------------------------------------------- ----------------------------------- , Co-owner signature (if applicable) 1996 Date