Edgar Filing: MORGAN STANLEY QUALITY MUNICIPAL SECURITIES

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-07560

Morgan Stanley Quality Municipal Securities

(Exact name of registrant as specified in charter)

522 Fifth Avenue, New York, New York 10036

(Address of principal executive offices) (Zip code)

Ronald E. Robison

522 Fifth Avenue, New York, New York 10036

(Name and address of agent for service)

Registrant’s telephone number, including area code: 212-296-6990

Date of fiscal year end: October 31, 2008

Date of reporting period: January 31, 2008

Item 1. Schedule of Investments.

The Trust’s schedule of investments as of the close of the reporting period prepared pursuant to Rule 12-12 of Regulation S-X is as follows:

Morgan Stanley Quality Municipal Securities

Portfolio of Investments January 31, 2008 (unaudited)

PRINCIPAL
AMOUNT IN
THOUSANDS

COUPON
RATE

MATURITY
DATE

VALUE

Tax-Exempt Municipal Bonds (153.4%)

Alabama (1.1%)

2,000

Jefferson County, Alabama, School Ser 2004 A

5.50

01/01/22

2,160,420

Alaska (1.2%)

3,000

Northern Tobacco Securitization Corporation, Alaska, Asset Backed Ser 2006 A

5.00

06/01/46

2,526,300

Arizona (2.5%)

3,890

Salt River Project Agricultural Improvement & Power District, Arizona, 2002 Ser B

5.00

01/01/22

4,102,783

1,000

Surprise Municipal Property Corporation, Arizona, Ser 2007

4.90

04/01/32

936,210

5,038,993

Arkansas (1.0%)

1,000

Baxter County Regional Hospital Inc, Arkansas Ser 2007

5.00

09/01/22

1,005,160

1,000

Baxter County Regional Hospital Inc, Arkansas Ser 2007

5.00

09/01/26

974,570

1,979,730

California (32.3%)

5,000

California Economic Recovery, Ser 2004 A

5.00

07/01/16

5,372,800

3,000

California Health Facilities Financing Authority, Cedars-Sinai Medical Center Ser 2005

5.00

11/15/34

2,973,540

5,000

California Public Works Board, Mental Health 2004 Ser A

5.00

06/01/24

5,049,650

4,000

California, Ser 2007 (MBIA Insd)

4.25

08/01/33

3,664,640

3,000

California, Various Purpose dtd 05/01/03

5.00

02/01/32

3,013,170

2,000

California, Various Purpose dtd 12/01/05

5.00

03/01/27

2,032,480

12,000

California, Various Purpose dtd 11/01/06

4.50

10/01/36

11,168,280

2,000

Golden State Tobacco Securitization Corporation, California, Enhanced Asset Backed Ser 2005 A (AMBAC Insd)

5.00

06/01/29

2,004,880

4,000

Golden State Tobacco Securitization Corporation, California, Enhanced Asset Backed Ser 2007 A

5.125

06/01/47

3,465,320

4,000

Golden State Tobacco Securitization Corporation, California, Enhanced Asset Backed Ser 2007 A

5.75

06/01/47

3,834,720

5,000

Los Angeles Department of Water & Power, California, Water 2004 Ser C (MBIA Insd)

5.00

07/01/23

5,264,150

4,000

Los Angeles, Community College District, California, 2003 Ser B (FSA Insd)

5.00

08/01/27

4,203,200

3,040

Milpitas Redevelopment Agency, California, Area #1 Ser 2003 (MBIA Insd)

5.00

09/01/22

3,187,714

4,240

San Diego County Water Authority, California, Ser 2004 A COPs (FSA Insd)

5.00

05/01/29

4,357,745

1,000

San Diego County, Burnham Institute for Medical Research Ser 2006 COPs

5.00

09/01/34

924,630

4,000

San Francisco City & County, California, Laguna Honda Hospital Ser 2005 I (FSA Insd)*

5.00

06/15/30

4,148,780

2,000

Tobacco Securitization Authority of Northern California, Sacramento County Tobacco Securitization Corporation Ser 2006 A-1

5.00

06/01/37

1,724,120

66,389,819

Colorado (4.9%)

2,590

Arkansas River Power Authority, Colorado, Power Ser 2006 (XLCA Insd)

5.25

10/01/40

2,624,369

2,000

Colorado Health Facilities Authority, Adventist/Sunbelt Ser 2006 D

5.25

11/15/35

2,031,500

5,000

Colorado Health Facilities Authority, Catholic Health Initiatives Ser 2001 A

5.25

09/01/11

†

5,456,150

10,112,019

Connecticut (0.7%)

1,500

Mashantucket (Western) Pequot Tribe, Connecticut, 2006 Ser A

5.50

09/01/36

1,406,730

District of Columbia (1.0%)

2,000

District of Columbia Ballpark, Ser 2006 B-1 (FGIC Insd)

5.00

02/01/31

2,004,580

Florida (8.0%)

1,000

Highlands County Health Facilities Authority, Florida, Adventist Health/Sunbelt Ser 2006 C

5.25

11/15/36

1,011,140

1,000

Lee County Industrial Development Authority, Florida, Shell Point Village/The Alliance Community for Retirement Living Inc, Ser 2006

5.125

11/15/36

890,030

5,000

Miami-Dade County, Florida, Miami Int'l Airport Ser 2000 A (AMT) (FGIC Insd)

6.00

10/01/24

5,264,700

1,995

Miami-Dade County, Florida, Ser 2005 A (MBIA Insd)

0.00

††

10/01/30

1,543,372

4,000

South Miami Health Facilities Authority, Florida, Baptist Health South Florida Ser 2007 *

5.00

08/15/42

3,966,380

1,000

St Johns County Industrial Development Authority, Florida, Glenmoor Ser 2006 A

5.25

01/01/26

907,580

3,250

St Johns, Florida, Industrial Development Authority, Glenmoor Refg 2006 Ser A

5.375

01/01/40

2,850,575

16,433,777

Georgia (8.3%)

5,000

Atlanta, Georgia, Airport Ser 2004 C (FSA Insd)

5.00

01/01/33

5,102,900

1,200

De Kalb County, Georgia, Water & Sewer Ser 2003 A

5.00

10/01/23

1,264,284

3,000

Fulton County, Georgia, Water & Sewerage Ser 2004 (FGIC Insd)

5.25

01/01/35

3,092,040

2,000

Georgia Road & Tollway Authority, Ser 2001

5.375

03/01/17

2,189,680

2,000

Georgia Road & Tollway Authority, Ser 2004

5.00

10/01/22

2,130,660

3,000

Georgia Road & Tollway Authority, Ser 2004

5.00

10/01/23

3,195,990

16,975,554

Hawaii (10.6%)

10,000

Hawaii Department of Budget & Finance, Hawaiian Electric Co Inc Ser 1993 (AMT) (MBIA Insd)

5.45

11/01/23

10,085,000

3,000

Hawaii, Airports Refg Ser 2000 B (AMT) (FGIC Insd)

6.625

07/01/18

3,190,050

8,000

Honolulu City & County, Hawaii, Ser 2003A (MBIA Insd) *

5.25

03/01/24

8,523,760

21,798,810

Illinois (9.3%)

3,600

Chicago Park District, Illinois, Harbor Ser A (AMBAC Insd)

5.00

01/01/27

3,722,544

3,000

Chicago, Illinois, O'Hare Int'l Airport 3rd Lien Ser 2005 A (MBIA Insd)

5.25

01/01/26

3,084,930

3,000

Chicago, Illinois, O'Hare Int'l Airport Passenger Fee Ser 2001 A (AMT) (AMBAC Insd)

5.375

01/01/32

3,027,450

3,000

Illinois Toll Highway Authority, Priority Refg 1998 Ser A (FSA Insd)

5.50

01/01/15

3,442,050

8,480

Metropolitan Pier & Exposition Authority, Illinois, McCormick Place Ser 2002 A (MBIA Insd)

0.00

†††

06/15/26

5,895,042

19,172,016

Indiana (1.5%)

3,000

Indiana Health & Educational Facility Financing Authority, Clarian Health Ser 2006 A

5.25

02/15/40

2,993,010

Kansas (1.3%)

2,500

Wyandotte County/Kansas City, Kansas, Ser 2004 B (FSA Insd)

5.00

09/01/28

2,585,550

Louisiana (0.5%)

1,000

Louisiana Public Facilities Authority, Pennington Medical Foundation Ser 2006

5.00

07/01/31

979,020

Maine (0.0%)

Maine Health & Higher Educational Facilities Authority, Ser 1993 D (FSA Insd)

5.50

07/01/18

60,113

Maryland (3.8%)

1,000

Baltimore County, Maryland, Oak Crest Village Ser 2007 A

5.00

01/01/37

923,230

1,500

Maryland Health & Higher Educational Facilities Authority, King Farm Presbyterian Community 2006 Ser B

5.00

01/01/17

1,494,600

2,000

Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical Ser 2001

5.25

07/01/11

†

2,181,400

3,000

Northeast Maryland Waste Disposal Authority, Montgomery County Ser 2003 (AMT) (AMBAC Insd)

5.50

04/01/16

3,241,410

7,840,640

Michigan (1.4%)

3,000

Michigan Hospital Finance Authority, Henry Ford Health Refg Ser 2006 A

5.25

11/15/46

2,976,630

Missouri (2.1%)

4,000

Missouri Health & Educational Facilities Authority, Barnes-Jewish/Christian Health Ser 1993 A

5.25

05/15/14

4,408,480

Nebraska (2.5%)

5,000

Nebraska Public Power District, 2003 Ser A (AMBAC Insd)

5.00

01/01/35

5,062,450

Nevada (2.0%)

3,000

Clark County, Nevada, Airport SubLien Ser 2004 (AMT) (FGIC Insd)

5.50

07/01/20

3,202,500

1,000

Reno, Nevada, Renown Regional Medical Center Ser 2007 A

5.25

06/01/37

980,130

4,182,630

New Hampshire (1.5%)

3,000

Manchester, New Hampshire, Water Works Ser 2003 (FGIC Insd)

5.00

12/01/34

3,047,550

New Jersey (5.3%)

3,000

New Jersey Economic Development Authority, Cigarette Tax Ser 2004 #

5.75

06/15/29

2,989,890

1,500

New Jersey Economic Development Authority, Seabrook Village Inc Ser 2006

5.25

11/15/36

1,315,995

3,300

Newark Housing Authority, New Jersey, Port Authority-Port Newark Marine Terminal Ser 2004 (MBIA Insd)

5.00

01/01/14

†

3,684,681

3,000

Tobacco Settlement Financing Corporation, New Jersey, Ser 2007-1A

4.625

06/01/26

2,625,060

3,000

Tobacco Settlement Financing Corporation, New Jersey, Ser 2007-1B

0.00

06/01/41

320,310

10,935,936

New York (10.2%)

5,000

Metropolitan Transportation Authority, New York, Transportation Ser 2003 B (MBIA Insd)

5.25

11/15/22

5,341,149

3,000

Nassau County Tobacco Settlement Corporation, New York, Ser 2006 A-3

5.125

06/01/46

2,871,480

3,000

New York City Municipal Water Finance Authority, New York, 2005 Ser B (AMBAC Insd)

5.00

06/15/28

3,111,900

6,000

Tobacco Settlement Financing Corporation, New York, State Contingency Ser 2003 B-1C

5.50

06/01/21

6,483,420

3,000

Triborough Bridge & Tunnel Authority, New York, Refg Ser 2002 B

5.25

11/15/19

3,256,320

21,064,269

North Carolina (1.0%)

2,000

North Carolina Municipal Power Agency #1, Catawba Ser 1993 (MBIA Insd)

5.25

01/01/20

2,133,040

Ohio (2.6%)

5,000

Cuyahoga County, Ohio, Cleveland Clinic Ser 2003 A

6.00

01/01/32

5,417,950

Pennsylvania (1.9%)

2,000

Allegheny County Redevelopment Authority, Pennsylvania, West Penn Allegheny Health 2007 A *

5.375

11/15/40

1,743,340

2,000

Pennsylvania, First Ser 2003 (MBIA Insd) *

5.00

01/01/13

†

2,210,910

3,954,250

Rhode Island (0.8%)

1,500

Rhode Island Economic Development Corporation, Airport Refg Ser 2004 A (AMT) (FSA Insd)

5.00

07/01/21

1,550,205

South Carolina (5.5%)

2,000

Charleston Educational Excellence Financing Corporation, South Carolina, Charleston County School District Ser 2005

5.25

12/01/29

2,058,700

4,565

Grand Strand Water & Sewer Authority, South Carolina, Refg Ser 2002 (FSA Insd)

5.375

06/01/19

4,972,244

Lexington County, South Carolina Health Services District, Lexmed Inc Ser 2007

5.00

11/01/16

42,804

210

Richland County Enviromental Improvement Revenue, South Carolina, International Paper Company Ser 2007 A

4.60

09/01/12

212,545

4,000

South Carolina Public Service Authority, Santee Cooper Ser 2003 A (AMBAC Insd)

5.00

01/01/27

4,102,760

11,389,053

Tennessee (2.0%)

4,000

Tennessee Energy Acquisition Corporation, Ser 2006 A *

5.25

09/01/19

4,202,660

Texas (11.8%)

2,000

Alliance Airport Authority, Texas, Federal Express Corp Refg Ser 2006 (AMT)

4.85

04/01/21

1,941,320

1,000

Austin, Texas, Water & Sewer, ROLS RRII R-574

10.384

‡

05/15/27

1,098,460

2,000

Brazos River Authority, Texas, TXU Electric Co Ser 1999 C (AMT)

7.70

03/01/32

2,073,400

5,000

Houston, Texas, Combined Utility First Lien Refg 2004 Ser A (MBIA Insd)

5.25

05/15/25

5,221,150

5,000

Houston, Texas, Water & Sewer Jr Lien Refg Ser 2001 A (FSA Insd)

5.50

12/01/16

5,503,150

1,000

Tarrant County Cultural Educational Facilities Finance Corp, Texas, Air Force Village II Inc Ser 2007

5.125

05/15/37

958,980

4,000

Tarrant County Regional Water District, Texas, Refg & Impr Ser 2002 (FSA Insd)

5.25

03/01/17

4,398,520

3,000

West Harris County Regional Water Authority, Texas, Water Ser 2005 (FSA Insd)

5.00

12/15/24

3,159,210

24,354,190

Utah (1.3%)

2,500

Intermountain Power Agency, Utah, 2003 Ser A (FSA Insd)

5.00

07/01/21

2,698,225

Virginia (10.6%)

1,250

Fairfax County Economic Development Authority, Virginia, Goodwin House Inc Ser 2007

5.125

10/01/42

1,171,813

10,000

Fairfax County Industrial Development Authority, Virginia, Inova Health Refg Ser 1993 A

5.25

08/15/19

11,257,500

4,000

Norfolk, Virginia, Water Ser 1993 (AMBAC Insd)

5.375

11/01/23

4,006,160

3,000

Prince William County Service Authority, Virginia, Water & Sewer Refg Ser 2003

5.00

07/01/19

3,265,110

2,000

Prince William County Service Authority, Virginia, Water & Sewer Refg Ser 2003

5.00

07/01/21

2,152,120

21,852,703

Washington (2.8%)

1,705

Grant County Public Utility District #2, Washington, Wanapum Hydroelectric 2005 Ser A (FGIC Insd)

5.00

01/01/34

1,735,349

4,010

Port of Seattle, Washington, Passenger Facility Ser 1998 A (MBIA Insd) *

5.00

12/01/23

4,056,560

5,791,909

Total Tax-Exempt Municipal Bonds (Cost $308,537,284)

315,479,211

NUMBER OF
SHARES (000)

Short-Term Investment (a) (1.8%)

Investment Company

3,641

Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio - Institutional Class
(Cost $3,641,062)

3,641,062

Total Investments (Cost $312,178,346)

319,120,273

PRINCIPAL
AMOUNT IN
THOUSANDS

Floating Rate Note Obligations Related to Securities Held (-9.6%)

(19,510)

Notes with interest rates ranging from 2.26% to 3.78% at January 31, 2008 and contractual maturities of collateral ranging from 01/01/13 to 08/15/42 †††† (b)
(Cost $(19,658,780))

(19,658,780)

Total Net Investments (Cost $292,519,566) (c) (d)

145.6

299,461,493

Other Assets in Excess of Liabilites

1.5

3,173,818

Preferred Shares of Beneficial Interest

(47.2

)

(97,000,000)

Net Assets Applicable to Common Shareholders

100.0

205,635,311

Note: The categories of

investments are shown as a percentage of net assets applicable to common shareholders.

AMT

Alternative Minimum Tax.

COPs

Certificates of Participation.

ROLS

Reset Option Longs.

A portion of this security has been physically segregated in connection with open futures

contracts in the amount of $188,330.

‡

Current coupon rate for inverse rate municipal obligation. This rate resets periodically as the auction rate on the related security changes. Position in an inverse floating rate municipal obligation has a total value of $1,098,460 which represents 0.5% of net assets applicable to common shareholders.

†

Prerefunded to call date shown.

††

Currently a zero coupon security; will convert to 5.00% on October 1, 2013.

†††

Currently a zero coupon security; will convert to 5.75% on June 15, 2017.

††††

Floating rate note obligations related to securities held. The interest rate shown reflects the rate in effect at January 31, 2008.

Underlying securities related to inverse floaters entered into by the Trust.

(a)

The Trust invests in Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio – Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment advisory fees paid by the Trust are reduced by an amount equal to the advisory and administrative services fees paid by Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio – Institutional Class with respect to assets invested by the Trust in Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio – Institutional Class. For the period ended January 31, 2008, advisory fees paid were reduced by $2,053 relating to the Trust's investment in Morgan Stanley Institutional Liquidity Tax-Exempt Portfolio – Institutional Class.

(b)

Floating Rate Note Obligations Related to Securities Held – The Trust enters into transactions in which it transfers to Dealer Trusts (“Dealer Trusts”), fixed rate bonds in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate investments. The Dealer Trusts fund the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Trust to retain residual interest in the bonds. The Trust enters into shortfall agreements with the Dealer Trusts which commit the Trust to pay the Dealer Trusts, in certain circumstances, the difference between the liquidation value of the fixed rate bonds held by the Dealer Trusts and the liquidation value of the floating rate notes held by third parties, as well as any shortfalls in interest cash flows. The residual interests held by the Trust (inverse floating rate investments) include the right of the Trust (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Trust, thereby collapsing the Dealer Trusts. The Trust accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Trust’s investment assets, and the related floating rate notes reflected as Trust liabilities. The notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. At January 31, 2008, Trust investments with a value of $28,852,390 are held by the Dealer Trusts and serve as collateral for the $19,658,780 in floating rate note obligations outstanding at that date.

(c)

Securities have been designated as collateral in an amount equal to $70,688,386 in connection with open futures contracts.

(d)

The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Bond insurance:

AMBAC

AMBAC Assurance Corporation.

FGIC

Financial Guaranty Insurance Company.

FSA

Financial Security Assurance Inc.

MBIA

Municipal Bond Investors Assurance Corporation.

XLCA

XL Capital Assurance Inc.

Futures Contracts Open at January 31, 2008:

NUMBER OF
CONTRACTS

LONG/SHORT

DESCRIPTION, DELIVERY
MONTH AND YEAR

UNDERLYING FACE
AMOUNT AT VALUE

UNREALIZED
APPRECIATION
(DEPRECIATION)

190

Long

Swap Futures 10 Year,

March 2008

21,481,875

223,133

Long

U.S. Treasury Notes 2 Year,

March 2008

13,195,336

92,889

Short

U.S. Treasury Bonds 20 Year,

March 2008

(3,312,750

)

(8,401

)

Short

U.S. Treasury Notes 5 Year,

March 2008

(9,457,875

)

(198,352

)

205

Short

U.S. Treasury Notes 10 Year,

March 2008

(23,780,000

)

(207,704

)

Net Unrealized Depreciation

(98,435

)

Item 2. Controls and Procedures.

(a) The Trust’s principal executive officer and principal financial officer have concluded that the Trust’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Trust’s in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

(b) There were no changes in the Trust’s internal control over financial reporting that occurred during the registrant’s fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.

Item 3. Exhibits.

(a) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Morgan Stanley Quality Municipal Securities

/s/ Ronald E. Robison

Ronald E. Robison
Principal Executive Officer
March 20, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ Ronald E. Robison

Ronald E. Robison
Principal Executive Officer
March 20, 2008

/s/ Francis Smith

Francis Smith
Principal Financial Officer
March 20, 2008

Exhibit 3 A1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Ronald E. Robison, certify that:

I have reviewed this report on Form N-Q of Morgan Stanley Quality Municipal Securities;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Omitted;

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 20, 2008

/s/ Ronald E. Robison

Ronald E. Robison
Principal Executive Officer

Exhibit 3 A2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Francis Smith, certify that:

I have reviewed this report on Form N-Q of Morgan Stanley Quality Municipal Securities;

(a)

(b)

Omitted;

(c)

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(a)

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 20, 2008

/s/ Francis Smith

Francis Smith
Principal Financial Officer