File No. 333-08225 CIK #910919

Securities and Exchange Commission
Washington, D. C. 20549

Post-Effective

Amendment No. 3

..

to

Form S-6

For Registration under the Securities Act of 1933 of Securities of Unit Investment Trusts Registered on Form N-8B-2

EVEREN Unit Investment Trusts, Series 51

Name and executive office address of Depositor:

Ranson & Associates, Inc. 250 North Rock Road, Suite 150 Wichita, Kansas 67206

Name and complete address of agent for service:

Robin Pinkerton Ranson & Associates, Inc. 250 North Rock Road, Suite 150 Wichita, Kansas 67206

( X ) Check box if it is proposed that this filing will become effective at 2:00 p.m. on October 30, 1998 pursuant to paragraph (b) of Rule 485.

KEMPER GOVERNMENT SECURITIES TRUST

KEMPER DEFINED FUNDS GNMA PORTFOLIO KEMPER DEFINED FUNDS U.S. TREASURY PORTFOLIO EVEREN UNIT INVESTMENT TRUSTS GNMA PORTFOLIO EVEREN UNIT INVESTMENT TRUSTS U.S TREASURY PORTFOLIO

PART ONE

Each Series of the Kemper Government Securities Trust, GNMA Portfolio, Kemper Defined Funds GNMA Portfolio and EVEREN Unit Investment Trusts GNMA Portfolio (collectively, the "GNMA Trust") was formed for the purpose of obtaining safety of capital and current monthly distributions of interest and principal through investment in a portfolio consisting of mortgage-backed Securities of the modified pass-through type. All payments of principal and interest on the mortgage-backed Securities are fully guaranteed by the Government National Mortgage Association ("GNMA"). The full faith and credit of the United States is pledged to the payment of the Securities in the GNMA Trust but the Units of such Series are not backed by such full faith and credit.

Each Series of the Kemper Government Securities Trust, U.S. Treasury Portfolio, Kemper Defined Funds U.S. Treasury Portfolio and EVEREN Unit Investment Trusts U.S. Treasury Portfolio (collectively, the "U.S. Treasury Portfolio Series") was formed for the purpose of providing safety of capital and investment flexibility through an investment in a portfolio of interest-bearing (or in certain Series zero coupon) U.S. Treasury obligations that are backed by the full faith and credit of the United States Government. Interest income distributed by the U.S. Treasury Portfolio Series is generally exempt from state personal income taxes in all states.

Certain Series are available to non-resident aliens and the income from such Series, provided certain conditions are met, will be exempt from withholding for U.S. Federal income tax for such foreign investors. A foreign investor must provide a completed W-8 form to his financial representative or the trustee to avoid withholding on his account.

Units of the Trusts are not deposits or obligations of, or guaranteed by, any bank, and are not Federally insured or otherwise protected by the Federal Deposit Insurance Corporation and involve investment risk including loss of principal.

SPONSOR: RANSON & ASSOCIATES, INC.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

The investor is advised to read and retain both parts of this Prospectus for future reference.

The date of this Part One is that date set forth in

Part Two of the Prospectus

TABLE OF CONTENTS

                                                                      Page

SUMMARY - GNMA PORTFOLIO                                               4

GNMA PORTFOLIO                                                         6
   The GNMA Trust                                                      6
   Risk Factors                                                        7
   Portfolios                                                          7
   Origination                                                         8
   Nature of Ginnie Maes and GNMA Guaranty                             9
   Life of the Securities and of the Series of the GNMA Trust         10

SUMMARY - U.S. TREASURY PORTFOLIO                                     12

THE U.S. TREASURY PORTFOLIO SERIES                                    15
   Risk Factors                                                       15
   General                                                            16

PORTFOLIO SELECTION                                                   16

THE UNITS                                                             17

ESTIMATED LONG-TERM AND CURRENT RETURNS                               17

PUBLIC OFFERING OF UNITS                                              18
   Public Offering Price                                              18
   Public Distribution                                                22
   Profits of Sponsor                                                 23

TAX STATUS OF THE TRUSTS                                              24
   Regulated Investment Companies                                     24
   U.S. Treasury Portfolio Series                                     26
   Kemper Government Securities Trust, GNMA Portfolio (Foreign
     Investors Trust) and Kemper Defined Funds, GNMA Portfolio,
     Series 1                                                         31

RETIREMENT PLANS                                                      35

DISTRIBUTION REINVESTMENT                                             37

REDEMPTION                                                            38
   Right of Redemption                                                38
   Computation of Redemption Value                                    39
   Postponement of Redemption                                         40

RIGHTS OF UNITHOLDERS                                                 40
   Unitholders                                                        40
   Ownership of Units                                                 41
   Certain Limitations                                                41

EXPENSES AND CHARGES                                                  42
   Initial Expenses                                                   42
   Fees                                                               42
   Other Charges                                                      42

DISTRIBUTIONS FROM THE INTEREST, PRINCIPAL AND
 CAPITAL GAINS ACCOUNTS.                                              43
   GNMA Trust                                                         43
   U.S. Treasury Portfolio Series                                     43
   General                                                            44

ADMINISTRATION OF THE TRUST                                           45

                                  -2-

   Records and Accounts                                               45
   Portfolio Supervision                                              45
   Reports to Unitholders                                             46
   Amendments                                                         48
   Termination                                                        49

RESIGNATION, REMOVAL AND LIABILITY                                    49
   Regarding the Trustee                                              49
   Regarding the Sponsor                                              50
   Regarding the Evaluator                                            50

MISCELLANEOUS                                                         50
   Sponsor                                                            50
   Trustee                                                            51
   Legal Opinions                                                     51

INDEPENDENT AUDITORS                                                  51


Essential Information*
Report of Independent Auditors*
Statement of Assets and Liabilities*
Statement of Operations*
Statement of Changes in Net Assets*
Schedule of Investments*

Notes to Schedule of Investments*

                               GNMA MIDGET SERIES             GNMA SERIES
                            ------------------------     ------------------------
                            PERCENT OF    PERCENT OF     PERCENT OF    PERCENT OF
                             OFFERING     NET AMOUNT      OFFERING     NET AMOUNT
TICKET SIZE                   PRICE        INVESTED        PRICE        INVESTED
-----------                 ----------    ----------     ----------    ----------
Less than $100,000            3.50%         3.627%         3.95%         4.112%
$100,000 to $249,999          3.25          3.359          3.70          3.842
$250,000 to $499,999          2.85          2.934          3.35          3.466
$500,000 to $999,999*         2.60          2.669          3.10          3.199

                                              DOLLAR WEIGHTED AVERAGE YEARS TO MATURITY

                             0-1.99 YEARS     2-2.99 YEARS     3-4.99 YEARS     5-6.99 YEARS     7-9.99 YEARS
                             ------------     ------------     ------------     ------------     ------------
TICKET SIZE                                  SALES CHARGE (PERCENT OF PUBLIC OFFERING PRICE)
-----------                  --------------------------------------------------------------------------------
Less than $500,000              1.25%            1.50%            1.75%            2.25%            3.00%
$500,000 to $999,999            1.00             1.25             1.50             1.75             2.50
$1,000,000 to $1,499,999*       1.00             1.00             1.25             1.50             2.00

The reduced sales charges as shown on the tables above will apply to all purchases of Units on any one day by the same person from the same firm, and for this purpose, purchases of Units of one or more Series of the Trusts will be aggregated with concurrent purchases of Units of any other unit investment trust that may be offered by the Sponsor.

Additionally, Units purchased in the name of a spouse or child (under 21) of such purchaser will be deemed to be additional purchases by such purchaser. The reduced sales charge is also applicable to a trustee or other fiduciary purchasing Units for a single trust estate or single fiduciary account.

The Sponsor will also allow purchasers who commit to purchase $1 million or more of a Series units during a 12 month period to do so at the applicable sales charge for such series pursuant to a letter of intent, subject to certain restrictions.

The Sponsor intends to permit officers, directors and employees of the Sponsor and Evaluator to purchase Units of any Series of the Trusts without a sales charge, although a transaction processing fee may be imposed on such trades. The Sponsor reserves the right to reject, in whole or in part, any order for the purchase of Units and the right to charge the amount of the sales charge from time to time.

Units may be purchased at the Public Offering Price less the concession the Sponsor typically allows to dealers and other selling agents for purchases (see "Public Distribution of Units") by investors who purchase Units through registered investment advisers, certified financial planners or registered broker-dealers who in each case either charge periodic fees for financial planning, investment advisory or asset management services, or provide such services in connection with the establishment of an investment account for which a comprehensive "wrap fee" charge is imposed.

In addition to the Public Offering Price, the price of a Unit of a Series of the Kemper Government Securities Trust will include accrued interest on the Portfolio Obligations from the last Record Date of that Series of such Trust to the date of settlement for any purchase. Therefore, accrued interest will generally be added to the value of the Units of such Trust. If a Unitholder of the Kemper Government Securities Trust sells all or a portion of his Units, he will receive his proportionate share of the accrued interest for that Series of the Trusts from the purchaser of his Units. Similarly, if a Unitholder of the Kemper Government Securities Trust redeems all or a portion of his Units, the Redemption Price per Unit will include accrued interest on the Portfolio Obligations in such Series.

In the case of certain Series of Kemper Defined Funds, the Public Offering Price includes accrued interest which consists of two elements. The first element arises as a result of accrued interest which is the accumulation of unpaid interest on a security from the later of the last day on which interest thereon was paid or the date of original issuance of the security. Interest on the Portfolio Obligations in a Trust is paid monthly or semi-annually to the Trust. The aggregate amount of such accrued interest on the Portfolio Obligations in a Trust in certain Series of Kemper Defined Funds to the First Settlement Date of such Trust is referred to herein as "Purchased Interest." Included in the Public Offering Price of the Trust Units is Purchased Interest. The second element of accrued interest arises because the estimated net interest on the Units in a Trust is accounted for daily on an accrual basis (herein referred to as "Daily Accrued Interest" for purposes of certain Kemper Defined Funds Trusts). Because of this, the Units always have an amount of interest earned but not yet paid or reserved for payment. For this reason, the Public Offering Price of Units in certain Series of Kemper Defined Funds will include the proportionate share of Daily Accrued Interest to the date of settlement. If a Unitholder in certain Series of Kemper Defined Funds sells or redeems all or a portion of his Units or if the Portfolio Obligations are sold or otherwise removed or if the Trust is liquidated, he will receive at that time his proportionate share of the Purchased Interest and Daily Accrued Interest computed to the settlement date in the case of sale or liquidation and to the date of tender in the case of redemption in the Trust.

In the case of certain other Series of Kemper Defined Funds and all Series of EVEREN Unit Investment Trusts, the Public Offering Price includes accrued interest as described in this paragraph. Accrued interest is the accumulation of unpaid interest on a security from the last day on which interest thereon was paid. Interest on Securities generally is paid semi-annually (monthly in the case of Ginnie Maes, if any) although a Trust accrues such interest daily. Because of this, a Trust always has an amount of interest earned but not yet collected by the Trustee. For this reason, with respect to sales settling subsequent to the First Settlement Date, the Public Offering Price of Units will have added to it the proportionate share of accrued interest to the date of settlement. Unitholders will receive on the next distribution date of a Trust the amount, if any, of accrued interest paid on their Units. In an effort to reduce the amount of accrued interest which would otherwise have to be paid in addition to the Public Offering Price in the sale of Units to the public, the Trustee will advance the amount of accrued interest as of the First Settlement Date and the same will be distributed to the Sponsor as the Unitholder of record as of the First Settlement Date. Consequently, the amount of accrued interest to be added to the Public Offering Price of Units will include only accrued interest from the First Settlement Date to the date of settlement, less any distributions from the Interest Account subsequent to the First Settlement Date. Because of the varying interest payment dates of the Securities, accrued interest at any point in time will be greater than the amount of interest actually received by the Trusts and distributed to Unitholders. Therefore, there will always remain an item of accrued interest that is added to the value of the Units. If a Unitholder sells or redeems all or a portion of his Units, he will be entitled to receive his proportionate share of the accrued interest from the purchaser of his Units. Since the Trustee has the use of the funds held in the Interest Account for distributions to Unitholders and since such Account is non- interest bearing to Unitholders, the Trustee benefits thereby.

The Public Offering Price on any date will vary from the amount stated under "Essential Information" in Part Two due to fluctuations in the valuation of the underlying Portfolio Obligations in such Series of the Trusts and accrued interest, and, in the case of certain Trusts, the additions or deletions of Purchased Interest and Daily Accrued Interest.

The aggregate bid prices of the Portfolio Obligations in a Series of the Trusts, are determined for each Series of the Trusts by the Evaluator, in the following manner: (a) on the basis of current bid prices for the Portfolio Obligations, (b) if bid prices are not available for the Portfolio Obligations, on the basis of current bid prices for comparable securities, (c) by determining the value of the Portfolio Obligations on the bid side of the market by appraisal, or (d) by any combination of the above. The Evaluator may obtain current price information as to the Portfolio Obligations from investment dealers or brokers, including the Sponsor. Such evaluations and computations will be made as of the close of business on each business day and will be effective for all sales of Units made during the preceding 24-hour period. Evaluations, for purposes of redemptions by the Trustee, will be made each business day as of the Evaluation Time stated under "Essential Information" in Part Two, effective for all redemptions made subsequent to the last preceding determination.

In connection with the Ginnie Maes deposited in the GNMA Trusts, there is a period of time beginning on the first day of each month, during which the total amount of payments (including prepayments, if any)

of principal for the preceding month on the various mortgages underlying each of the Ginnie Maes in the Portfolio of a Series will not yet have been reported by the issuer to GNMA and made generally available to the public. During this period, the precise principal amount of the underlying mortgages remaining outstanding for each Ginnie Mae in the Portfolios, and therefore the precise principal amount of such Security, will not be known, although the principal amount outstanding for the preceding month will be known. Therefore, the exact amount of principal to be acquired by the Trustee as a holder of such Securities which may be distributed to Unitholders of such Series with the next monthly distribution will not be known. The Sponsor does not expect that the amounts of such prepayments and the differences in such principal amounts from month to month will be material in relation to a Series of the GNMA Trusts due to the number of mortgages underlying each Ginnie Mae and the number of such Ginnie Maes in each Series of the GNMA Trusts. However, there can be no assurance that they will not be material. For purposes of the determination by the Evaluator of the bid prices of the Ginnie Maes in the GNMA Portfolios and for purposes of calculations of accrued interest on the Units, during the period in each month prior to the time when the precise amounts of principal of the Ginnie Maes for the month become publicly available, the Evaluator will base its evaluations and calculations, which are the basis for calculations of the Public Offering Price, the Sponsor's Repurchase Price and the Redemption Price per Unit, upon the principal amount of such Series outstanding for the preceding month. The Sponsor expects that the differences in such principal amounts from month to month will not be material to each GNMA Portfolio Series of the Trusts. Nevertheless, the Sponsor will adopt procedures as to pricing and evaluation for the Units of each Series of the GNMA Trusts, with such modifications, if any, deemed necessary by the Sponsor for the protection of Unitholders, designed to minimize the impact of such differences upon the calculation of the Public Offering Price per Unit, the Sponsor's Repurchase Price per Unit and the Redemption Price per Unit of such Series.

Public Distribution. The Sponsor has qualified Units for sale in various states. Units will be sold through dealers who are members of the National Association of Securities Dealers, Inc. and through others. Such firms receive a discount from the Public Offering Price as indicated in the tables under "Profit of Sponsor" below. Certain commercial banks are making Units of the Trust available to their customers on an agency basis. A portion of the sales charge paid by their customers is retained by or remitted to the banks in an amount as indicated in the tables under "Profit of Sponsor" below. Under the Glass-Steagall Act, banks are prohibited from underwriting Trust Units; however, the Glass-Steagall Act does permit certain agency transactions and the banking permitted regulators have indicated that these particular agency transactions are permitted under such Act. In addition, state securities laws on this issue may differ from the interpretations of Federal law expressed herein and banks and financial institutions may be required to register as dealers pursuant to state law. The Sponsor reserves the right to reject, in whole or in part, any order for the purchase of Units. The Sponsor reserves the right to change the discounts from time to time. The difference between the discounts and the sales charge will be retained by the Sponsor.

The Sponsor also reserves the right to change the discounts set forth above from time to time. In addition to such discounts, the Sponsor may, from time to time, pay or allow an additional discount, in the form of cash or other compensation, to dealers employing registered representatives who sell, during a specified time period, a minimum dollar amount of Units of the Series of the Trusts and other unit investment trusts underwritten by the Sponsor.

While not obligated to do so, the Sponsor intends, subject to change at any time, to maintain a market for Units of the Series of the Trusts offered hereby and to continuously offer to purchase said Units at prices based on the aggregate bid prices of the underlying Portfolio Obligations in such Series, together with accrued interest to the expected date of settlement.

The Sponsor may suspend or discontinue purchases of Units at prices based on the bid prices of Securities in any Series of the Trusts if the supply of Units exceeds demand, or for other business reasons.

Profits of Sponsor. Sales of Units may be made to or through dealers or through others at prices which represent discounts from the Public Offering Price as set forth below. Discounted rates for the GNMA Portfolio Series are as follows:

                                      GNMA           GNMA
Ticket Size*                     Midget Series      Series
------------                     -------------      ------
Less than $100,000                   2.10%           2.60%
$100,000 to $249,999                 2.10            2.60
$250,000 to $499,999                 1.80            2.30
$500,000 to $999,999**               1.55            2.05

** For transactions in excess of this amount, contact the Sponsor for the applicable rates.

On the sale of Units, the Sponsor will retain the difference between the discount and the sales charge. The Sponsor may also realize profits or sustain losses while maintaining a market in the Units, in the amount of any difference between the prices at which it buys Units and the prices at which Units are resold after allowing for the discount.

Cash, if any, received by a dealer from Unitholders prior to the settlement date for a purchase of Units of any Series may be used in such dealer's business subject to the limitations of Rule 15c3-3 under the Securities Exchange Act of 1934 and may be of benefit to the dealer.

TAX STATUS OF THE TRUSTS

Regulated Investment Companies. Each Series of the GNMA Trusts (except for Kemper Government Securities Trust GNMA Portfolio (Foreign Investors Trusts) and Kemper Defined Funds, GNMA Portfolio, Series 1) is an association taxable as a corporation under the Internal Revenue Code and intends to qualify on a continuing basis for special Federal income tax treatment as a "regulated investment company" under the Internal Revenue Code of 1986 (the "Code"). If the Trust so qualifies and timely distributes to Unitholders 90% or more of its taxable income (without regard to its net capital gain, i.e., the excess of its long-term capital gain over its net short-term capital loss), it will not be subject to Federal income tax on the portion of its taxable income (including any net capital gain) that it distributes to Unitholders. In addition, to the extent the Trust distributes to Unitholders at least 98% of its taxable income (including any net capital gain), it will not be subject to the 4% excise tax on certain undistributed income of "regulated investment companies." Each Series of the GNMA Portfolio intends to timely distribute its taxable income (including any net capital gains) to avoid the imposition of Federal income tax or the excise tax. Distributions of the entire net investment income of each Series of such Trusts is required by the Indenture.

In any taxable year of the Trusts, the distributions of its income, other than distributions which are designated as capital gain dividends, will, to the extent of the earnings and profits of such Series, constitute dividends for Federal income tax purposes which are taxable as ordinary income to Unitholders. To the extent that the distributions to a Unitholder in any year exceed the Trust's current and accumulated earnings and profits, they will be treated as a return of capital and will reduce the Unitholder's basis in his Units, and to the extent that they exceed his basis, will be treated as a gain from the sale of his Units as discussed below. Distributions from each Series of the GNMA Trusts will not be eligible for the 70% dividends received deduction for corporations. Although distributions generally will be treated as distributed when paid, distributions declared in October, November or December, payable to Unitholders of record on a specified date in one of those months and paid during January of the following year will be treated as having been distributed by each Series of such Trusts (and received by the Unitholders) on December 31 of the year such distributions are declared. Under the Code, certain miscellaneous itemized deductions, such as investment expenses, tax return preparation fees and employee business expenses, will be deductible by individuals only to the extent they exceed 2% of adjusted gross income. Miscellaneous itemized deductions subject to this limitation under present law do not include expenses incurred by the GNMA Trusts, as long as the Units of such Trusts are held by or for 500 or more persons at all times during the taxable year or another exception is met. In the event the Units of any Series of a GNMA Trust are held by fewer than 500 persons, additional taxable income will be realized by the individual (and other noncorporate) Unitholders in excess of the distributions received from such Series.

Distributions of the Trusts' net capital gain which the Trusts designate as capital gain dividends will be taxable to Unitholders thereof as long-term capital gains, regardless of the length of time the Units have been held by a Unitholder. However, if a Unitholder receives a long-term capital gain dividend (or is allocated a portion of the

Trust's undistributed long-term capital gain) and sells his Units at a loss prior to holding them for 6 months, such loss will be recharacterized as long-term capital loss to the extent of such long-term capital gain received as a dividend or allocated to a Unitholder. Distributions in partial liquidation, reflecting the proceeds of prepayments, redemptions, maturities (including monthly mortgage payments of principal in GNMA Series) or sales of Portfolio Obligations from a Series of such Trusts (exclusive of net capital gain) will not be taxable to Unitholders of such Series to the extent that they represent a return of capital for tax purposes. The portion of distributions which represents a return of capital will, however, reduce a Unitholder's basis in his Units, and to the extent they exceed the basis of his Units will be taxable as a capital gain. A Unitholder may recognize a taxable gain or loss when his Units are sold or redeemed. Such gain or loss will generally constitute either a long-term or short-term capital gain or loss depending upon the length of time the Unitholder has held his Units. Any loss on Units held six months or less will be treated as long-term capital loss to the extent of any long-term capital gains dividends received (or deemed to have been received) by the Unitholder with respect to such Units. For taxpayers other than corporations, net capital gains are presently subject to a maximum stated marginal tax rate of 28%. However, it should be noted that legislative proposals are introduced from time to time that affect tax rates and could affect relative differences at which ordinary income and capital gains are taxed. A capital loss is long-term if the asset is held for more than one year and short-term if held for one year or less.

"The Revenue Reconciliation Act of 1993" (the "Tax Act") raised tax rates on ordinary income while capital gains remain subject to a 28% maximum stated rate for taxpayers other than corporations. Because some or all capital gains are taxed at a comparatively lower rate under the Tax Act, the Tax Act includes a provision that recharacterizes capital gains as ordinary income in the case of certain financial transactions that are "conversion transactions" effective for transactions entered into after April 30, 1993. Unitholders and prospective investors should consult with their tax advisers regarding the potential effect of this provision on their investment in Units. If a Ginnie Mae or Fannie Mae has been purchased by a GNMA Trust at a market discount (i.e., for a purchase price less than its stated redemption price at maturity (or if issued with original issue discount, its "revised issue price")) unless the amount of market discount is "de minimis" as specified in the Code each payment of principal on such security will generally constitute ordinary income to such Series of the Trust to the extent of any accrued market discount unless the Trust elects to include the accrued market discount in taxable income as it accrues. In the case of a Ginnie Mae, the amount of market discount that is deemed to accrue each month shall generally be the amount of discount that bears the same ratio to the total amount of remaining market discount that the amount of interest paid during the accrual period (each month) bears to the total amount of interest remaining to be paid on the Ginnie Mae as of the beginning of the accrual period.

Each Unitholder of each Series of the GNMA Trusts shall receive an annual statement describing the tax status of the distributions paid by such Series of such Trust.

Each Unitholder will be requested to provide the Unitholder's taxpayer identification number to the Trustee and to certify that the Unitholder has not been notified that payments to the Unitholder are

subject to back-up withholding. If the proper taxpayer identification number and appropriate certification are not provided when requested, distributions by the Trust to such Unitholder (including amounts received upon the redemption of Units) will be subject to back-up withholding.

The foregoing discussion relates only to the Federal income tax status of the Trust and to the tax treatment of distributions by the Trust to United States Unitholders.

A Unitholder who is a foreign investor (i.e., an investor other than a United States citizen or resident or a United States corporation, partnership, estate or trust) should be aware that, generally, subject to applicable tax treaties, distributions from the Trust which constitute dividends for Federal income tax purposes (other than dividends which the Trust designates as capital gain dividends) will be subject to United States income taxes, including withholding taxes. However, distributions received by a foreign investor from the Trust that are designated by the Trust as capital gain dividends should not be subject to United States Federal income taxes, including withholding taxes, if all of the following conditions are met (i) the capital gain dividend is not effectively connected with the conduct by the foreign investor of a trade or business within the United States, (ii) the foreign investor (if an individual) is not present in the United States for 183 days or more during his or her taxable year, and (iii) the foreign investor provides all certification which may be required of his status (foreign investors may contact the Sponsor to obtain a Form W-8 which must be filed with the Trustee and refiled every three calendar years thereafter). Foreign investors should consult their tax advisers with respect to United States tax consequences of ownership of Units. Units in the Trust and Trust distributions may also be subject to state and local taxation and Unitholders should consult their tax advisers in this regard.

U.S. Treasury Portfolio Series. In the opinion of Chapman and Cutler, counsel for the Sponsor:

(1) Each Series of the U.S. Treasury Portfolio is not an association taxable as a corporation for Federal income tax purposes; each Unitholder will be treated as the owner of a pro rata portion of the U.S. Treasury Portfolio Series of the Trust under the Code and income of such Series will be treated as the income of the Unitholders under the Code. Each Unitholder will be considered to have received his or her pro rata share of income derived from each Series asset when such income is considered to be received by each U.S. Treasury Portfolio Series.

(2) Each Unitholder will have a taxable event when the U.S. Treasury Portfolio Series disposes of a U.S. Treasury Obligation, or when the Unitholder redeems or sells his Units. Unitholders must reduce the tax basis of their Units for their share of accrued interest received by the U.S. Treasury Portfolio Series, if any, on U.S. Treasury Obligations delivered after the Unitholder pay for their Units to the extent that such interest accrued on such U.S. Treasury Obligations before the date each U.S. Treasury Portfolio Series acquired ownership of the U.S. Treasury Obligations (and the amount of this reduction may exceed the amount of accrued interest paid to the seller) and, consequently, such Unitholders may have an

increase in taxable gain or reduction in capital loss upon the disposition of such Units. Gain or loss upon the sale or redemption of Units is measured by comparing the proceeds of such sale or redemption with the adjusted basis of the Units. If the Trustee disposes of U.S. Treasury Obligations (whether by sale, payment on maturity, redemption or otherwise), gain or loss is recognized to the Unitholder. The amount of any such gain or loss is measured by comparing the Unitholder's pro rata share of the total proceeds from such disposition with the Unitholder's basis for his or her fractional interest in the asset disposed of. In the case of a Unitholder who purchases Units, such basis (before adjustment for earned original issue discount, amortized bond premium and accrued market discount (if the Unitholder has elected to include such market discount in income as it accrues), if any) is determined by apportioning the cost of the Units among each of the U.S. Treasury Portfolio Series assets ratably according to value as of the valuation date nearest the date of acquisition of the Units. The tax basis reduction requirements of said Code relating to amortization of bond premium may, under some circumstances, result in the Unitholder realizing a taxable gain when his Units are sold or redeemed for an amount equal to or less than his original cost.

(3) Certain Series of the U.S. Treasury Portfolio Series contain Stripped Treasury Securities. The basis of each Unit and of each U.S. Treasury Obligation which was issued with original issue discount must be increased by the amount of accrued original issue discount and the basis of each Unit and of each U.S. Treasury Obligation which was purchased by such Trusts at a premium must be reduced by the annual amortization of bond premium which the Unitholder has properly elected to amortize under Section 171 of the Code. A Trust may contain certain "zero coupon" Securities (the "Stripped Treasury Securities") that are treated as bonds that were originally issued at an original issue discount provided, pursuant to a Treasury Regulation (the "Regulation") issued on December 28, 1992, that the amount of original issue discount determined under
Section 1286 of the Code is not less than a "de minimis" amount as determined thereunder. Because the Stripped Treasury Securities represent interests in "stripped" U.S. Treasury bonds, a Unitholder's initial cost for his pro rata portion of each Stripped Treasury Securities held by the Trust (determined at the time he acquires his Units, in the manner described above) shall be treated as its "purchase price" by the Unitholder. Original issue discount is effectively treated as interest for Federal income tax purposes, and the amount of original issue discount in this case is generally the difference between the bond's purchase price and its stated redemption price at maturity. A Unitholder will be required to include in gross income for each taxable year the sum of his daily portions of original issue discount attributable to the Stripped Treasury Securities held by the U.S. Treasury Portfolio Series as such original issue discount accrues and will, in general, be subject to Federal income tax with respect to the total amount of such original issue discount that accrues for such year even though the income is not distributed to the Unitholders during such year to the extent it is not less than a "de minimis" amount as determined under the Regulation. To the extent that the amount of such discount is less than the respective "de minimis" amount, such discount shall be treated as zero. In general, original issue discount accrues daily under a constant interest rate method which takes into account the semi-annual compounding of accrued interest.

In the case of the Stripped Treasury Securities, this method will generally result in an increasing amount of income to the Unitholders each year. Unitholders should consult their tax advisers regarding the Federal income tax consequences and accretion of original issue discount.

(4) The Unitholder's aliquot share of the total proceeds received on the disposition of, or principal paid with respect to, a U.S. Treasury Obligation held by the U.S. Treasury Portfolio Series will constitute ordinary income (which will be treated as interest income for most purposes) to the extent it does not exceed the accrued market discount on such U.S. Treasury Obligation issued that has not previously been included in taxable income by such Unitholder. A Unitholder may generally elect to include market discount in income as such discount accrues. In general, market discount is the excess, if any, of the Unitholder's pro rata portion of the outstanding principal balance of a U.S. Treasury Obligation over the Unitholder's initial tax basis for such pro rata portion, determined at the time such Unitholder acquires his Units. However, market discount with respect to any U.S. Treasury Obligation will generally be considered zero if it amounts to less than 0.25% of the obligation's stated redemption price at maturity times the number of years to maturity. The market discount rules do not apply to Stripped Treasury Securities because they are stripped debt instruments subject to special original issue discount rules as discussed above. If a Unitholder sells his Units, gain, if any, will constitute ordinary income to the extent of the aggregate of the accrued market discount on the Unitholder's pro rata portion of each U.S. Treasury Obligation that is held by the U.S. Treasury Portfolio Series that has not previously been included in taxable income by such Unitholder. In general, market discount accrues on a ratable basis unless the Unitholder elects to accrue such discount on a constant interest rate basis. However, a Unitholder should consult his own tax adviser regarding the accrual of market discount. The deduction by a Unitholder for any interest expense incurred to purchase or carry Units will be reduced by the amount of any accrued market discount that has not yet been included in taxable income by such Unitholder. In general, the portion of any interest expense which is not currently deductible would be ultimately deductible when the accrued market discount is included in income. Unitholders should consult their tax advisers regarding whether an election should be made to include market discount in income as it accrues and as to the amount of interest expense which may not be currently deductible.

(5) The Code provides that "miscellaneous itemized deductions" are allowable only to the extent that they exceed two percent of an individual taxpayer's adjusted gross income. Miscellaneous itemized deductions subject to this limitation under present law include a Unitholder's pro rata share of expenses paid by the applicable Series of the U.S. Treasury Portfolio Series, including fees of the Trustee, and the Evaluator, but does not include amortizable bond premium on U.S. Treasury Obligations held by the U.S. Treasury Portfolio Series.

"The Revenue Reconciliation Act of 1993" (the "Tax Act") raised tax rates on ordinary income while capital gains remain subject to a 28%

maximum stated rate for taxpayers other than corporations. Because some or all capital gains are taxed at a comparatively lower rate under the Tax Act, the Tax Act includes a provision that recharacterizes capital gains as ordinary income in the case of certain financial transactions that are "conversion transactions" effective for transactions entered into after April 30, 1993. Unitholders and prospective investors should consult with their tax advisers regarding the potential effect of this provision on their investment in Units.

The tax basis of a Unitholder with respect to his interest in a U.S. Treasury Obligation is increased by the amount of original issue discount (and market discount, if the Unitholder elects to include market discount, if any, on the U.S. Treasury Obligations held by the Trust in income as it accrues) thereon properly included in the Unitholder's gross income as determined for Federal income tax purposes and reduced by the amount of any amortized acquisition premium which the Unitholder has properly elected to amortize under Section 171 of the Code. A Unitholder's tax basis in his Units will equal his tax basis in is pro rata portion of all of the asset of the Trust.

A Unitholder will recognize taxable capital gain (or loss) when all or part of his pro rata interest in a U.S. Treasury Obligation is disposed of in a taxable transaction for an amount greater (or less) than his tax basis therefor. Any gain recognized on a sale or exchange and not constituting a realization of accrued "market discount," and any loss will, under current law, generally be capital gain or loss except in the case of a dealer or financial institution. As previously discussed, gain realized on the disposition of the interest of a Unitholder in any U.S. Treasury Obligation deemed to have been acquired with market discount will be treated as ordinary income to the extent the gain does not exceed the amount of accrued market discount not previously taken into income. Any capital gain or loss arising from the disposition of a U.S. Treasury Obligation by the Trust or the disposition of Units by a Unitholder will be short-term capital gain or loss unless the Unitholder has held his Units for more than one year in which case such capital gain or loss will be long-term. The tax basis reduction requirements of the Code relating to amortization of bond premium may under some circumstances, result in the Unitholder realizing taxable gain when his Units are sold or redeemed for an amount equal to or less than his original cost.

If the Unitholder disposes of a Unit, he is deemed thereby to have disposed of his entire pro rata interest in all Trust assets including his pro rata portion of the U.S. Treasury Obligations represented by the Unit. This may result in a portion of the gain, if any, on such sale being taxable as ordinary income under the market discount rules (assuming no election was made by the Unitholder to include market discount in income as it accrues) as previously discussed.

The Sponsor believes that Unitholders who are individuals will not be subject to any state personal income taxes on the interest received by a U.S. Treasury Portfolio Series and distributed to them. However, Unitholders (including individuals) may be subject to state and local taxes on any capital gains (or market discount treated as ordinary income) derived from a U.S. Treasury Portfolio Series and to other state and local taxes (including corporate income or franchise taxes, personal property or intangibles taxes, and estate or inheritance taxes) on their Units or the income derived therefrom. In addition, individual

Unitholders (and any other Unitholders which are not subject to state and local taxes on the interest income derived from U.S. Treasury Portfolio Series) will probably not be entitled to a deduction for state and local tax purposes for their share of the fees and expenses paid by a U.S. Treasury Portfolio Series, for any amortized bond premium or for any interest on indebtedness incurred to purchase or carry their Units. Therefore, even though the Sponsor believes that interest income from a U.S. Treasury Portfolio Series is exempt from state personal income taxes in all states, Unitholders should consult their own tax advisers with respect to state and local taxation of the purchase, ownership and disposition of Units.

A Unitholder of a U.S. Treasury Portfolio Series who is not a citizen or resident of the United States or a United States domestic corporation (a "Foreign Investor") will not be subject to U.S. Federal income taxes, including withholding taxes on amounts distributed from the U.S. Treasury Portfolio Series (including any original issue discount) on, or any gain from the sale or other disposition of, his Units or the sale or disposition of any U.S. Treasury Obligations by the Trustee, provided that (i) the interest income or gain is not effectively connected with the conduct by the Foreign Investor of a trade or business within the United States, (ii) with respect to any gain, the Foreign Investor (if an individual) is not present in the United States for 183 days or more during the taxable year, and (iii) the Foreign Investor provides the required certification of his status and of the matters contained in clauses (i) and (ii) above, and further provided that the exemption from withholding for U.S. Federal income taxes for interest on any U.S. Treasury Obligation shall only apply to the extent the U.S. Treasury Obligation was issued after July 18, 1984.

Unless an applicable treaty exemption applies and proper certification is made, amounts otherwise distributable by the U.S. Treasury Portfolio Series to a Foreign Investor will generally be subject to withholding taxes under Section 1441 of the Code unless the Unitholder timely provides his financial representative or the Trustee with a statement that (i) is signed by the Unitholder under penalties of perjury, (ii) certifies that such Unitholder is not a United States person, or in the case of an individual, that he is neither a citizen nor a resident of the United States, and (iii) provides the name and address of the Unitholder. The statement may be made, at the option of the person otherwise required to withhold, on Form W-8 or on a substitute form that is substantially similar to Form W-8. If the information provided on the statement changes, the beneficial owner must so inform the person otherwise required to withhold within 30 days of such change.

Foreign Unitholders should consult their own tax advisers with respect to the foreign and United States tax consequences on ownership of Units.

It should be remembered that even if distributions are reinvested they are still treated as distributions for income tax purposes.

It should also be remembered that Unitholders of Series holding Stripped Treasury Securities will be required for Federal income tax purposes to include amounts in ordinary gross income in advance of the receipt of the cash attributable to such income.

Each Unitholder (other than a foreign investor who has properly provided the certifications described above) will be requested to provide the Unitholder's taxpayer identification number to the Trustee and to certify that the Unitholder has not been notified by the Internal Revenue Service that payments to the Unitholder are subject to back-up withholding. If the proper taxpayer identification number and appropriate certification are not provided when requested, distributions by a Trust to such Unitholder will be subject to back-up withholding.

Kemper Government Securities Trust, GNMA Portfolio (Foreign Investors Trust) and Kemper Defined Funds, GNMA Portfolio, Series 1. In the opinion of Chapman and Cutler, counsel for the Sponsor:

(1) Each GNMA Portfolio Series is not an associate taxable as a corporation for Federal income tax purposes; each Unitholder will be treated as the owner of a pro rata portion of the GNMA Portfolio Series of the respective Trust under the Code and income of such Series will be treated as the income of the Unitholders under the Code. Each Unitholder will be considered to have received his or her pro rata share of income derived from each GNMA Portfolio Series asset when income is received by a GNMA Portfolio Series.

(2) Each Unitholder will have a taxable event when a GNMA Portfolio Series disposes of a Security, or when the Unitholder redeems or sells his Units. Unitholders must reduce the tax basis of their Units for their share of accrued interest received by a GNMA Portfolio Series, if any, on Securities delivered after the Unitholders pay for their Units to the extent that such interest accrued on such Securities before the date each GNMA Portfolio Series acquired ownership of the GNMA Portfolio Series (and the amount of this reduction may exceed the amount of accrued interest paid to the seller) and, consequently, such Unitholders may have an increase in taxable gain or reduction in capital loss upon the disposition of such Units. Gain or loss upon the sale or redemption of Units is measured by comparing the proceeds of such sale or redemption with the adjusted basis of the Units. If the Trustee disposes of Securities (whether by sale, payment on maturity, redemption or otherwise), gain or loss is recognized to the Unitholder. The amount of any such gain or loss is measured by comparing the Unitholder's pro rata share of the total proceeds for such disposition with the Unitholder's basis for his or her fractional interest in the asset disposed of. In the case of a Unitholder who purchases Units, such basis (before adjustment for earned original issue discount, amortized bond premium and accrued market discount (if the Unitholder has elected to include such market discount in income as it accrues), if any) is determined by apportioning the cost of the Units among each of a GNMA Portfolio Series assets ratably according to value as of the valuation date nearest the date of acquisition of the Units. The tax basis reduction requirements of said Code relating to amortization of bond premium may, under some circumstances, result in the Unitholder realizing a taxable gain when his Units are sold or redeemed for an amount equal to or less than his original cost.

(3) Each GNMA Portfolio Series contains Stripped Treasury Securities. The basis of each Unit and of each U.S. Treasury Obligation which was issued with original issue discount must be increased by the amount of accrued original issue discount and the basis of each Unit and of each U.S. Treasury Obligation which was purchased by such Trusts at a premium must be reduced by the annual amortization of bond premium which the Unitholder has properly elected to amortize under Section 171 of the Code. The Stripped Treasury Securities held by the Trusts are treated as bonds that were originally issued at an original issue discount provided, pursuant to a Treasury Regulation (the "Regulation") issued on December 28, 1992, that the amount of original issue discount determined under Section 1286 of the Code is not less than a "de minimis" amount as determined thereunder. Because the Stripped Treasury Securities represent interests in "stripped" U.S. Treasury bonds, a Unitholder's initial cost for his pro rata portion of each Stripped Treasury Security held by a Trust (determined at the time he acquires his Units, in the manner described above) shall be treated as its "purchase price" by the Unitholder. Original issue discount is effectively treated as interest for Federal income tax purposes, and the amount of original issue discount in this case is generally the difference between the bond's purchase price and its stated redemption price at maturity. A Unitholder will be required to include in gross income for each taxable year the sum of his daily portions of original issue discount attributable to the Stripped Treasury Securities held by a Trust as such original discount accrues and will, in general, be subject to Federal income tax with respect to the total amount of such original issue discount that accrues for such year even though the income is not distributed to the Unitholders during such year to the extent it is not less than a "de minimis" amount as determined under the Regulation. To the extent that the amount of such discount is less than the respective "de minimis" amount such discount shall be treated as zero. In general, original issue discount accrues daily under a constant interest rate method which takes into account the semi- annual compounding of accrued interest. In the case of the Stripped Treasury Securities this method will generally result in an increasing amount of income to the Unitholders each year. Unitholders should consult their tax advisers regarding the Federal income tax consequences and accretion of original issue discount.

(4) The Unitholder's aliquot share of the total proceeds received on the disposition of, or principal paid with respect to, a Security held by a Trust will constitute ordinary income (which will be treated as interest income for most purposes) to the extent it does not exceed the accrued market discount on such Security that has not previously been included in taxable income by such Unitholder. A Unitholder may generally elect to include market discount in income as such discount accrues. In general, market discount is the excess, if any, of the Unitholder's pro rata portion of the outstanding principal balance of a Security over the Unitholder's initial tax basis for such pro rata portion, determined at the time such Unitholder acquires his Units. However, market discount with respect to any Security will generally be considered zero if it amounts to less than 0.25% of the obligation's stated redemption price at maturity times the number of years to maturity. The market discount rules do not apply to Stripped Treasury Securities because they are stripped debt instruments subject to special original issue discount rules as discussed above. If a

Unitholder sells his Units, gain, if any, will constitute ordinary income to the extent of the aggregate of the accrued market discount on the Unitholder's pro rata portion of each Security issued that is held by a Trust that has not previously been included in taxable income by such Unitholder. In general, market discount accrues on a ratable basis unless the Unitholder elects to accrue such discount on a constant interest rate basis. However, a Unitholder should consult his own tax adviser regarding the accrual of market discount. The deduction by a Unitholder for any interest expense incurred to purchase or carry Units will be reduced by the amount of any accrued market discount that has not yet been included in taxable income by such Unitholder. In general, the portion of any interest expense which is not currently deductible would be ultimately deductible when the accrued market discount is included in income. Unitholders should consult their tax advisers regarding whether an election should be made to include market discount in income as it accrues and as to the amount of interest expense which may not be currently deductible.

(5) The Code provides that "miscellaneous itemized deductions" are allowable only to the extent that they exceed two percent of an individual taxpayer's adjusted gross income. Miscellaneous itemized deductions subject to this limitation under present law include a Unitholder's pro rata share paid by the Trust, including fees of the Trustee and the Evaluator but does not include amortizable bond premium on Securities held by the Trusts.

"The Revenue Reconciliation Act of 1993" (the "Tax Act") raised tax rates on ordinary income while capital gains remain subject to a 28% maximum stated rate for taxpayers other than corporations. Because some or all capital gains are taxed at a comparatively lower rate under the Tax Act, the Tax Act included a provision that recharacterizes capital gains as ordinary income in the case of certain financial transactions that are "conversion transactions" effective for transactions entered into after April 30, 1993. Unitholders and prospective investors should consult with their tax advisers regarding the potential effect of this provision on their investment in Units.

A Unitholder of a GNMA Portfolio Series who is not a citizen or resident of the United States or a United States domestic corporation (a "Foreign Investor") will generally not be subject to U.S. Federal income taxes, including withholding taxes on amounts distributed from the Trusts (including any original issue discount) on, or any gain from the sale or other disposition of, his Units or the sale or disposition of any Securities by the Trustee, provided that (i) the interest income or gain is not effectively connected with the conduct by the Foreign Investor of a trade or business within the United States, (ii) with respect to any gain, the Foreign Investor (if an individual) is not present in the United States for 183 days or more during the taxable year, and (iii) the Foreign Investor provides the required certification of his status and of the matters contained in clauses (i) and (ii) above, and further provided that the exemption from withholding for U.S. Federal income taxes for interest on any Stripped Treasury Security shall only apply to the extent the Stripped Treasury Security was issued after July 18, 1984 and for interest on any Ginnie Mae to the extent the mortgages underlying such Ginnie Mae were originated after July 18, 1984.

Unless an applicable treaty exemption applies and proper certification is made, amounts otherwise distributable by the Trusts to a Foreign Investor will generally be subject to withholding taxes under
Section 1441 of the Code unless the Unitholder timely provides his financial representative or the Trustee with a statement that (i) is signed by the Unitholder under penalties of perjury, (ii) certifies that such Unitholder is not a United States person, or in the case of an individual, that he is neither a citizen nor a resident of the United States, and (iii) provides the name and address of the Unitholder. The statement may be made, at the option of the person otherwise required to withhold, on Form W-8 or on a substitute form that is substantially similar to Form W-8. If the information provided on the statement changes, the beneficial owner must so inform the person otherwise required to withhold within 30 days of such change.

The foregoing discussions relate only to Federal income taxes on distributions by the Trusts; such distributions may also be subject to state and local taxation. Unitholders should consult their own tax advisers regarding questions of state and local taxation applicable to the Units.

Foreign Unitholders should consult their own tax advisers with respect to the foreign and United States tax consequences or ownership of Units.

It should be remembered that even if distributions are reinvested, they are still treated as distributions for income tax purposes.

It should also be remembered that Unitholders may be required for Federal income tax purposes to include amounts in ordinary gross income in advance of the receipt of the cash attributable to such income.

Each Unitholder (other than a foreign investor who has properly provided the certifications described above) will be requested to provide the Unitholder's taxpayer identification number to the Trustee and to certify that the Unitholder has not been notified that payments to the Unitholder are subject to back-up withholding. If the proper taxpayer identification number and appropriate certification are not provided when requested, distributions by a Trust to such Unitholder will be subject to back-up withholding.

Foreign Investors Trust - Each Kemper Government Securities Trust, GNMA Portfolio Series of Midget Foreign Investors Trust, which is available only to non-resident alien investors, is not an association taxable as a corporation for Federal income tax purposes and income received by such Series will be treated as the income of the Unitholders.

A Unitholder of a Series of a Midget Foreign Investors Trust who is not a citizen or resident of the United States or a United States domestic corporation (a "Foreign Investor") will not be subject to U.S. Federal income taxes, including withholding taxes on amounts distributed from a Trust (including any original issue discount) on, or any gain from the sale or other disposition of, his Units or the sale or disposition of any Ginnie Mae by the trustee, provided that (i) the interest income or gain is not effectively connected with the conduct by the Foreign Investor of a trade or business within the United States, (ii) with

respect to any gain, the Foreign Investor (if an individual) is not present in the United States for 183 days or more during the taxable year, and (iii) the Foreign Investor provides the required certification of his status and of the matters contained in clauses (i) and (ii) above, and further provided that the exemption from withholding for U.S. Federal income taxes for interest on any Ginnie Mae shall only apply to the extent the mortgages underlying the Ginnie Mae were originated after July 18, 1984.

Interest income received by the Trust is subject to withholding taxes under Section 1441 of the Code prior to distribution of such interest income to each Unitholder unless the Unitholder provides his financial representative or the Trustee with a statement that (i) is signed by the Unitholder under penalties of perjury, (ii) certifies that such Unitholder is not a United States person, or in the case of an individual, that he is neither a citizen nor a resident of the United States, and (iii) provides the name and address of the Unitholder. The statement may be made, at the option of the person otherwise required to withhold, on Form W-8 or on a substitute form that is substantially similar to Form W-8. If the information provided on the statement changes, the beneficial owner must so inform the person otherwise required to withhold within 30 days of such change.

The foregoing discussions relate only to Federal income taxes on distributions by each Series of a Trust; such distributions may also be subject to state and local taxation. Unitholders should consult their own tax advisers regarding questions of state and local taxation applicable to the Units. Foreign Unitholders should consult their own tax advisers with respect to United States Federal income tax consequences or ownership of Units.

It should be remembered that even if distributions are reinvested, they are still treated as distributions for income tax purposes.

RETIREMENT PLANS

As indicated under "Tax Status of the Trusts" above, Unitholders of a U.S. Treasury Portfolio Series will be required for Federal income tax purposes to include amounts in ordinary gross income in advance of the receipt of the cash attributable to such income. Therefore, purchase of Units may be appropriate only for an account which can pay taxes with other funds in advance of the receipt of the cash attributable to such income or for Individual Retirement Accounts, Keogh plans, pension funds and other qualified retirement plans, certain of which are briefly described below.

The various Series of the Trusts which are not Foreign Investors Trusts, may be well suited for purchase by Individual Retirement Accounts, Keogh Plans, pension funds and other qualified retirement plans, certain of which are briefly described below.

Generally, capital gains and income received in each of the foregoing plans are deferred from Federal taxation. All distributions from such plans are generally treated as ordinary income but may, in some cases, be eligible for special income averaging or tax-deferred rollover treatment. Investors considering participation in any such plan should review specific tax laws related thereto and should consult their

attorneys or tax advisers with respect to the establishment and maintenance of any such plan. Such plans are offered by brokerage firms and other financial institutions. Each Series of the Trusts will waive the $1,000 minimum investment requirement for IRA accounts. The minimum investment is $250 for tax-deferred plans such as IRA accounts. Fees and charges with respect to such plans may vary.

Individual Retirement Account - IRA. Any individual under age 70-1/2 may contribute the lesser of $2,000 or 100% of compensation to an IRA annually. Such contributions are fully deductible if the individual (and spouse if filing jointly) are not covered by a retirement plan at work. The deductible amount an individual may contribute to an IRA will be reduced $10 for each $50 of adjusted gross income over $25,000 ($40,000 if married, filing jointly or $0 if married, filing separately), if either an individual or their spouse (if married, filing jointly) is an active participant in an employer maintained retirement plan. Thus, if an individual has adjusted gross income over $35,000 ($50,000 if married, filing jointly or $0 if married, filing separately) and if an individual or their spouse is an active participant in an employer maintained retirement plan, no IRA deduction is permitted. Under the Code, an individual may make nondeductible contributions to the extent deductible contributions are not allowed. All distributions from an IRA (other than the return of certain excess contributions) are treated as ordinary income for Federal income taxation purposes provided that under the Code an individual need not pay tax on the return of nondeductible contributions, the amount includable in income for the taxable year is the portion of the amount withdrawn for the taxable year as the individual's aggregate nondeductible IRA contributions bear to the aggregate balance of all IRAs of the individual.

A participant's interest in an IRA must be, or commence to be, distributed to the participant not later than April 1 of the calendar year following the year during which the participant attains at 70-1/2. Distributions made before attainment of age 59-1/2, except in the case of the participant's death or disability, or where the amount distributed is to be rolled over to another IRA, or where the distributions are taken as a series of substantially equal periodic payments over the participant's life or life expectancy (or the joint lives or life expectancies of the participant and the designated beneficiary) are generally subject to a surtax in an amount equal to 10% of the distribution. The amount of such periodic payments may not be modified before the later of five years or attainment of age 59-1/2. Excess contributions are subject to an annual 6% excise tax.

IRA applications, disclosure statement and trust agreements are available from the Sponsor upon request.

Qualified Retirement Plans. Units of a Series of the Trust which are not Foreign Investors Trusts may be purchased by qualified pension or profit sharing plans maintained by corporations, partnerships or sole proprietors. The maximum annual contribution for a participant in a money purchase pension plan or to paired profit sharing and pension plans is the lesser of 25% of compensation or $30,000. Prototype plan documents for establishing qualified retirement plans are available from the Sponsor upon request.

Excess Distributions Tax. In addition to the other taxes due by reason of a plan distribution, a tax of 15% may apply to certain aggregate distributions from IRAs, Keogh plans, and corporate retirement plans to the extent such aggregate taxable distributions exceed specified amounts (generally $150,000, as adjusted) during a tax year. This 15% tax will not apply to distributions on account of death, qualified domestic relations orders or amounts eligible for tax-deferred rollover treatment. In general, for lump sum distributions the excess distribution over $750,000 (as adjusted) will be subject to the 15% tax.

The Trustee has agreed to act as custodian for certain retirement plan accounts. An annual fee per account, if not paid separately, will be assessed by the Trustee and paid through the liquidation of shares of the retirement account. An individual wishing the Trustee to act as custodian must complete a Ranson UIT/IRA application and forward it along with a check made payable to the Trustee. Certificates for Individual Retirement Accounts can not be issued.

DISTRIBUTION REINVESTMENT

Each Unitholder of the Trust may elect, at the time of purchase, to have distributions of principal (including capital gains, if any) or interest or both automatically invested without charge in shares of any mutual fund registered in such Unitholder's state of residence which is underwritten or advised by Zurich Kemper Investments, Inc. (the "Kemper Funds"), other than those Kemper Funds sold with a contingent deferred sales charge. Since the portfolio securities and investment objectives of such Kemper Funds may differ significantly from that of the Trusts, Unitholders should carefully consider the consequences before selecting such Kemper Funds for reinvestment.

Detailed information with respect to the investment objectives and management of these Kemper Funds is contained in their respective prospectuses, which can be obtained from the Sponsor or an investor's financial representative upon request. An investor should read the appropriate prospectus prior to making the election to reinvest. Unitholders who desire to have their distributions automatically reinvested should inform their financial representative at the time of purchase or should file with the Program Agent referred to below a written notice of such election.

Unitholders who initially elect to receive distributions in cash may elect to participate in the reinvestment program by filing with the Program Agent an election to have such distributions reinvested without charge. The election must be received by the Program Agent at least ten days prior to the Record Date applicable to any distribution in order to be in effect for such distribution. The election to participate in the reinvestment program shall remain in effect until a subsequent notice is received in writing by the Program Agent. See "Administration of the Trust-Distributions from the Interest, Principal and Capital Gains Accounts."

The Program Agent is the Trustee. All inquiries concerning participation in the Reinvestment Plan should be directed to the Program Agent its unit investment trust office.

Unitholders participating in IRA's, Keogh Plans and other tax deferred retirement plans, may find it highly advantageous to participate in the Reinvestment Program in order to keep the monies in the account fully invested at all times. Should reinvestment be selected, an account with an identical registration to that established at the time the Trust Units are purchased will be set up in the reinvestment Fund selected by the investor. Investors should consult with their plan custodian as to the appropriate disposition of distributions. If participants in IRA's, Keogh Plans and other tax deferred retirement plans do not elect a reinvestment option, cash distributions will be sent to the custodian of the retirement plan and will not be sent to the investor, since payments to the investor would constitute a distribution from the plan which would result in tax penalties for premature withdrawals from such programs. See "Retirement Plans."

REDEMPTION

Right of Redemption. It may be possible, in some cases, for Units to be sold in the over-the-counter market for a higher price than the Redemption Value for such Units. Therefore, a Unitholder who wishes to dispose of his Units is advised to inquire through his financial representative as to current market prices for Units in order to determine if there is an over-the-counter price in excess of Redemption Value per Unit or the Sponsor's Repurchase Price for such Series of the Trust.

A Unitholder who does not dispose of Units in the secondary market described above may cause Units to be redeemed by the Trustee by making a written request to the Trustee, The Bank of New York, 101 Barclay Street, New York, New York 10286 and, in the case of Units evidenced by a certificate, by tendering such certificate to the Trustee, properly endorsed or accompanied by a written instrument or instruments of transfer in form satisfactory to the Trustee. Unitholders must sign the request, and such certificate or transfer instrument, exactly as their names appear on the records of the Trustee and on any certificate representing the Units to be redeemed. If the amount of the redemption is $25,000 or less and the proceeds are payable to the Unitholder(s) of record at the address of record, no signature guarantee is necessary for redemption by individual account owners (including joint owners) or fiduciary accounts where the fiduciary is named in the account registration. Additional documentation may be requested, and a signature guarantee is always required, from corporations, executors, administrators, trustees, guardians or associations. If required, the signatures must be guaranteed by a participant in the Securities Transfer Agents Medallion Program ("STAMP") or such other signature guarantee program in addition to or in substitution for STAMP as may be accepted by the Trustee. A certificate should only be sent by registered or certified mail for the protection of the Unitholder. Since tender of the certificate is required for redemption when one has been issued, Units represented by a certificate cannot be redeemed until the certificate representing such Units has been received by the purchaser.

Redemption shall be made by the Trustee on the third business day following the day on which a tender for redemption is received (the "Redemption Date") by payment of cash equivalent to the Redemption Value of such Series, determined as set forth below under "Computation of Redemption Value," next following such tender, multiplied by the number

of Units of such Series being redeemed. Any Units redeemed shall be cancelled and any undivided fractional interest in such Series of the Trusts extinguished. The price received upon redemption might be more or less than the amount paid by the Unitholder depending on the value of the Portfolio Obligations in the Portfolio of the Series at the time of redemption.

During the period in which the Sponsor maintains a market for Units, the Sponsor has the right to repurchase any Unit presented for tender to the Trustee for redemption no later than the close of business on the second business day following such presentation.

The Trustee is irrevocably authorized in its discretion, if the Sponsor does not elect to repurchase any Unit tendered for redemption or if the Sponsor itself tenders Units for redemption, in lieu of redeeming Units presented for tender at the Redemption Value, to sell such Units in the over-the-counter market for the account of a tendering Unitholder at prices which will return to the Unitholder monies, net after brokerage commissions, transfer taxes and other charges, equal to or in excess of the Redemption Value for such Units. In the event of any such sale, the Trustee will pay the net proceeds thereof to the Unitholder on the day he would otherwise be entitled to receive payment of the Redemption Value.

Any amounts to be paid on redemption representing interest shall be withdrawn from the Interest Account of such Series to the extent funds are available. All other amounts paid on redemption shall be withdrawn from the Principal Account of such Series. The Trustee is authorized by the Indenture to sell Portfolio Obligations from a Series in order to provide funds for redemption. To the extent Portfolio Obligations are sold, the size of that Series of the Trusts will be reduced. Portfolio Obligations will be sold by the Trustee so as to maintain, as closely as practicable, the original percentage relationship between the principal amounts of the Portfolio Obligations in such Series. The Portfolio Obligations to be sold for purposes of redeeming Units will be selected from a list supplied by the Sponsor. The Portfolio Obligations will be chosen for this list by the Sponsor on the basis of such market and credit factors as it may determine are in the best interests of such Series of the Trust. Provision is made under the Indenture for the Sponsor to specify minimum face amounts in which blocks of Portfolio Obligations are to be sold in order to obtain the best price available. While such minimum amounts may vary from time to time in accordance with market conditions, it is anticipated that the minimum face amounts which would be specified would range from $25,000 to $100,000. Sales may be required at a time when the Portfolio Obligations would not otherwise be sold and might result in lower prices than might otherwise be realized. Moreover, due to the minimum principal amount in which Portfolio Obligations may be required to be sold, the proceeds of such sales may exceed the amount necessary for payment of Units redeemed. To the extent not used to meet other redemption requests in such Series, such excess proceeds will be distributed pro rata to all remaining Unitholders of record of such Series, unless reinvested in substitute Portfolio Obligations. See "Administration of the Trust - Portfolio Supervision."

Computation of Redemption Value. The value of a Unit of a Series of the Trust is determined as of the Evaluation Time stated under "Essential Information" in Part Two (a) semiannually, on June 30 and December 31 of each year (or the last business day prior thereto), (b) on any business

day as of the Evaluation Time next following the tender of any Unit and
(c) on any other business day desired by the Sponsor or the Trustee,

(1) by adding:

a. The aggregate bid side evaluation of the Portfolio Obligations in a Series of the Trust, as determined by the Evaluator;

b. Cash on hand in such Series of the Trusts, other than money deposited to purchase contract obligations or money credited to the Reserve Account; and

c. Accrued but unpaid interest on the Portfolio Obligations in such Series to the redemption date.

(2) and then deducting from the resulting figure: amounts representing any applicable taxes or governmental charges payable by such Series of the Trusts for the purpose of making an addition to the reserve account (as defined in the Indenture), amounts representing estimated accrued expenses (including audit fees) of the Series, amounts representing unpaid fees and expenses of the Trustee, the Sponsor (if applicable), counsel and the Evaluator and monies held for distribution to Unitholders of record of such Series as of the business day prior to the evaluation being made on the days or dates set forth above;

(3) and then dividing the result of the above computation by the total number of Units of such Series outstanding on the date of evaluation. The resulting figure equals the Redemption Value for each Unit of such Series. The Evaluator will determine the aggregate current bid price evaluation of the Portfolio Obligations in each Series of the Trusts as set forth under "Public Offering of Units - Public Offering Price."

Postponement of Redemption. The right of redemption of any Series may be suspended and payment of the Redemption Value per Unit postponed for more than seven calendar days following a tender of Units for redemption for any period (as determined by the Securities and Exchange Commission) during which the New York Stock Exchange is closed, other than for customary weekend and holiday closings, or during which trading on that Exchange is restricted or an emergency exists as a result of which disposal or evaluation of the Portfolio Obligations is not reasonably practicable, or for such other periods as the Securities and Exchange Commission may by order permit. The Trustee is not liable to any person in any way for any loss or damage which may result from any such suspension or postponement.

RIGHTS OF UNITHOLDERS

Unitholders. A Unitholder is deemed to be a beneficiary of the Series of the Trusts which he purchased and is vested with all right, title and interest in the appropriate Series of the Trusts, each of which

was created by the Indenture. A Unitholder may at any time tender his Units to the Trustee for redemption.

Ownership of Units. Ownership of Units of a Series of the Trusts will not be evidenced by Certificates unless a Unitholder or the Unitholder's registered broker/dealer makes a written request to the Trustee. Units are transferable by making a written request to the Trustee and, in the case of Units evidenced by a certificate, by presenting and surrendering such certificate to the Trustee properly endorsed or accompanied by a written instrument or instruments of transfer which should be sent registered or certified mail for the protection of the Unitholder. Unitholders must sign such written request, and such certificate or transfer instrument, exactly as their names appear on the records of the Trustee and on any certificate representing the Units to be transferred. Such signatures must be guaranteed by a participant in the Securities Transfer Agents Medallion Program ("STAMP") or such other signature guarantee program in addition to or in substitution for STAMP as may be accepted by the Trustee.

Certificates will be issued in denominations of 1,000 Units (100 Units for Kemper Defined Funds and EVEREN Unit Investment Trusts) or any whole number of Units in excess thereof. The Trustee may require a Unitholder to pay a reasonable fee, to be determined in the sole discretion of the Trustee, for each certificate reissued or transferred and to pay any governmental charge that may be imposed in connection with each such transfer or exchange. The Trustee at the present time does not intend to charge for the normal transfer or exchange of certificates. Destroyed, stolen, mutilated or lost certificates will be replaced upon delivery to the Trustee of satisfactory indemnity (generally amounting to 3% of the market value of the Units), affidavit of loss, if appropriate, evidence of ownership and payment of expenses incurred. Any mutilated certificate must be presented to the Trustee before a substitute certificate will be issued.

Certain Limitations. The death or incapacity of any Unitholder (or the dissolution of the Sponsor) will not operate to terminate the Trusts or any Series thereof nor entitle the legal representatives or heirs of such Unitholder to claim an accounting or to take any other action or proceeding in any court for a partition or winding up of the Trusts or any Series thereof.

No Unitholder shall have the right to vote except with respect to removal of the Trustee or amendment and termination of the Trust or of the Series of which they are a Unitholder. See "Administration of the Trust - Amendment" and "Administration of the Trust - Termination." Unitholders shall have no right to control the operation or administration of the Trust or any Series thereof in any manner, except upon the vote of Unitholders representing 66-2/3% of the Units of a Series outstanding for purposes of amendment, termination or discharge of the Trustee, all as provided in the Indenture; however, no Unitholder shall ever be under any liability to any third party for any action taken by the Trustee, Evaluator or Sponsor.

General Information
Principal Amount of Securities                                        $2,875,213
Number of Units                                                          320,598
Fractional Undivided Interest in the Trust per Unit                    1/320,598
Principal Amount of Securities per Unit                                   $8.968
Calculation of Public Offering Price:
  Aggregate Bid Price of Securities in the Trust                      $2,900,780
  Aggregate Bid Price of Securities per Unit                              $9.048
  Principal Cash per Unit (1)                                            $(.411)
  Purchased Interest per Unit through settlement date of July 6, 1998      $.008
  Total Price including Purchased Interest per Unit                       $8.645
  Sales Charge of 3.627% (3.50% of Public Offering Price)                  $.314
  Public Offering Price per Unit                                          $8.959
Redemption Price per Unit                                                 $8.645
Calculation of Estimated Net Annual Interest Income per Unit:
  Estimated Annual Interest Income                                      $.594054
  Less:  Estimated Annual Expense                                       $.018837
  Estimated Net Annual Interest Income                                  $.575217
Daily Rate at which Estimated Annual Interest Income Accrues
  per Unit                                                              $.001598
Estimated Current Return Based on Public Offering Price (2)                6.42%
Estimated Long-Term Return (2)                                             5.19%

Record and Distribution Date            Record Date is the first of each month
                                        and distributions to Unitholders on such
                                        record dates will be made on the 15th
                                        day of the month.

Distribution Dates                      No distribution (other than capital
                                        gains distributions) need be made from
                                        the Principal Account if the balance
                                        therein,
                                        excluding capital gains, is less than
                                        $1.00 per 100 Units.

Trustee's Annual Fee(including
estimated expenses)                     $1.63 per 100 Units (includes $.86 of
                                        Trustee's annual fee per $1,000
                                        principal amount of underlying
                                        Securities and $.15 of out-of-pocket
                                        expenses per 100 Units).

Evaluator's Annual Fee                  $.175 per $1,000 principal amount of
                                        underlying Securities.

Surveillance Fee                        $.25 per $1,000 principal amount of
                                        underlying Securities.

Date of Trust Agreement and
Initial Deposit                         July 23, 1997

Mandatory Termination Date              December 31, 2027

Discretionary Liquidation Amount        The Trust may be terminated if the value
                                        thereof is less than $1,442,630 (40% of
                                        the par value of the Securities
                                        deposited in the Trust).

Assets
GNMA Securities, at value (cost $2,829,905)                         $2,900,780
Interest receivable                                                     15,870
                                                                     ---------
Total assets                                                         2,916,650


Liabilities and net assets
Cash overdraft                                                         102,825
Accrued liabilities                                                      2,626
                                                                     ---------
                                                                       105,451

Net assets, applicable to 320,598 Units outstanding:
  Cost of Trust assets, exclusive of interest          $2,829,905
  Unrealized appreciation                                  70,875
  Distributable funds                                    (89,581)
                                                        ---------    ---------
Net assets                                                          $2,811,199
                                                                     =========

                                                                   Period from
                                                                       July 23,
                                                      Year ended        1996 to
                                                         June 30,      June 30,
                                                             1998          1997
                                                        ---------     ---------
Investment income - interest                             $207,915      $174,056
Expenses:
  Trustee's fees and related expenses                       6,594         4,479
  Evaluator's and portfolio surveillance fees               1,360           880
                                                        ---------     ---------
Total expenses                                              7,954         5,359
                                                        ---------     ---------
Net investment income                                     199,961       168,697

Realized and unrealized gain on investments:
  Realized gain                                             9,787         3,961
  Unrealized appreciation during the period                67,397         3,478
                                                        ---------     ---------
Net gain on investments                                    77,184         7,439
                                                        ---------     ---------
Net increase in net assets resulting from operations     $277,145      $176,136
                                                        =========     =========

                                                                 Period from
                                                                     July 23,
                                           Year ended                1996 to
                                             June 30,                June 30,
                                                 1998                    1997
                                            ---------               ---------
Operations:
  Net investment income                      $199,961                $168,697
  Realized gain on investments                  9,787                   3,961
  Unrealized appreciation on investments
  during the period                            67,397                   3,478
                                            ---------               ---------
Net increase in net assets resulting from
operations                                    277,145                 176,136

Distributions to Unitholders:
  Net investment income                     (205,870)               (150,187)
  Principal from investment transactions    (294,825)               (148,931)
                                            ---------               ---------
Total distributions to Unitholders          (500,695)               (299,118)

Capital transactions:
  Issuance of  361,526 Units                       -                3,545,894
  Redemption of  4,835 Units                       -                 (63,130)
  Redemption of  36,093 Units               (325,033)                       -
                                           ---------                ---------
Total increase (decrease) in net assets     (548,583)               3,359,782

Net assets:
  At the beginning of the period            3,359,782                       -
                                            ---------               ---------
  At the end of the period (including
  distributable funds applicable to
  Trusts Units of $(89,581) and $19,634
  at June 30, 1998 and 1997, respectively. $2,811,199              $3,359,782
                                            =========               =========
Trust Units outstanding at the end of the
period                                        320,598                 356,691
                                            =========               =========
Net asset value per Unit at the end of the
period                                         $8.769                  $9.419
                                            =========               =========

                   EVEREN Defined Funds

                  GNMA Portfolio Series 6

                   Schedule of Investments

                         June 30, 1998


         Government National Mortgage Association
     Modified Pass-Through Mortgage-Backed Securities

Principal                Range of Stated
   Amount     Coupon      Maturities (1)     Value
---------        ---       ---                 ---
$2,612,552     6.500%      2011-2012     $2,174,583
   712,661     7.000%      2011-2012        726,197
 ---------                                ---------
$3,325,213                               $2,900,780
 =========                                =========

Gross unrealized appreciation                                  $70,875
Gross unrealized depreciation                                       -
                                                            ----------
Net unrealized appreciation                                    $70,875
                                                             =========

General Information
Principal Amount of Securities                                  $3,288,547
Number of Units                                                    365,958
Fractional Undivided Interest in the Trust per Unit              1/365,958
Principal Amount of Securities per Unit                             $8.986
Calculation of Public Offering Price:
  Aggregate Bid Price of Securities in the Trust                $3,348,456
  Aggregate Bid Price of Securities per Unit                        $9.150
  Principal Cash per Unit (1)                                      $(.504)
  Purchased Interest per Unit through settlement date of
  July 6, 1998                                                       $.009
  Total Price including Purchased Interest per Unit                 $8.655
  Sales Charge of 4.112% (3.95% of Public Offering Price)            $.356
  Public Offering Price per Unit                                    $9.011
Redemption Price per Unit                                           $8.655
Calculation of Estimated Net Annual Interest Income per Unit:
  Estimated Annual Interest Income                                $.649018
  Less:  Estimated Annual Expense                                 $.018586
  Estimated Net Annual Interest Income                            $.630432
Daily Rate at which Estimated Annual Interest Income Accrues
per Unit                                                          $.001751
Estimated Current Return Based on Public Offering Price (2)          7.00%
Estimated Long-Term Return (2)                                       5.69%

Record and Distribution Date         Record Date is the first of each month and
                                     distributions to Unitholders on such
                                     record dates will be made on the 15th day
                                     of the month.

Distribution Dates                   No distribution (other than capital gains
                                     distributions) need be made from the
                                     Principal Account if the balance therein,
                                     excluding capital gains, is less than $1.00
                                     per 100 Units.

Trustee's Annual Fee                 (including estimated expenses) $1.67 per
                                     100 Units (includes $.86 of Trustee's
                                     annual fee per $1,000 principal amount of
                                     underlying Securities and $.15 of out-of-
                                     pocket expenses per 100 Units).

Evaluator's Annual Fee               $.175 per $1,000 principal amount of
                                     underlying Securities.

Surveillance Fee                     $.25 per $1,000 principal amount of
                                     underlying Securities.

Date of Trust Agreement and Initial
Deposit                              July 23, 1996

Mandatory Termination Date           December 31, 2027

Discretionary Liquidation Amount     The Trust may be terminated if the value
                                     thereof is less than $1,798,032 (40% of the
                                     par value of the Securities deposited in
                                     the Trust).

Assets
GNMA Securities, at value (cost $3,211,542)                         $3,348,456
Interest receivable                                                     19,792
                                                                     ---------
Total assets                                                         3,368,248


Liabilities and net assets
Cash overdraft                                                         130,107
Accrued liabilities                                                      2,606
                                                                     ---------
                                                                       132,713

Net assets, applicable to 365,958 Units outstanding:
  Cost of Trust assets, exclusive of interest          $3,211,542
  Unrealized appreciation                                 136,914
  Distributable funds                                   (112,921)
                                                        ---------    ---------
Net assets                                                          $3,235,535
                                                                     =========

                                                        Period from
                                                           July 23,
                                           Year ended       1996 to
                                             June 30,      June 30,
                                                 1998         1997
                                            ---------    ---------
Investment income - interest                 $277,256     $244,686
Expenses:
  Trustee's fees and related expenses           8,059        5,293
  Evaluator's and portfolio
    surveillance fees                           1,660        1,303
                                            ---------    ---------
Total expenses                                  9,719        6,596
                                            ---------    ---------
Net investment income                         267,537      238,090

Realized and unrealized gain on
  investments:
  Realized gain                                20,526        2,649
  Unrealized appreciation during the
    period                                     90,462       46,452
                                            ---------    ---------
Net gain on investments                       110,988       49,101
                                            ---------    ---------
Net increase in net assets resulting
  from operations                            $378,525     $287,191
                                            =========    =========

                                                          Period from
                                                             July 23,
                                             Year ended       1996 to
                                               June 30,      June 30,
                                                   1998         1997
                                              ---------    ---------
Operations:
  Net investment income                        $267,537     $238,090
  Realized gain on investments                   20,526        2,649
  Unrealized appreciation on investments         90,462       46,452
                                              ---------    ---------
Net increase in net assets resulting from
operations                                      378,525      287,191

Distributions to Unitholders:
  Net investment income                       (275,363)    (208,470)
  Principal from investment transactions      (457,683)     (86,099)
                                              ---------    ---------
Total distributions to Unitholders            (733,046)    (294,569)

Capital transactions:
  Issuance of  450,491 Units                         -     4,396,570
  Redemption of  9,849 Units                         -      (95,477)
  Redemption of  74,684 Units                 (703,659)            -
                                              ---------    ---------
Total increase (decrease) in net assets     (1,058,180)    4,293,715

Net assets:
  At the beginning of the period              4,293,715            -
                                              ---------    ---------
  At the end of the period (including
  distributable funds applicable to Trusts
  Units of $(112,921) and $16,105 at
  June 30, 1998 and 1997, respectively.      $3,235,535   $4,293,715
                                              =========    =========
Trust Units outstanding at the end of the
 period                                         365,958      440,642
                                              =========    =========
Net asset value per Unit at the end of the
 period                                          $8.841       $9.744
                                              =========    =========

                         EVEREN Defined Funds

                        GNMA Portfolio Series 7

                         Schedule of Investments

                               June 30, 1998


                 Government National Mortgage Association
             Modified Pass-Through Mortgage-Backed Securities

 Principal                Range of Stated
    Amount      Coupon     Maturities (1)        Value
 ---------         ---     ---                     ---
  $731,536       8.000%    2026-2027          $755,324
 2,557,011       7.000%    2025-2027        2,593,132
 ---------                                   ---------
$3,288,547                                  $3,348,456
 =========                                   =========

Gross unrealized appreciation                                   $136,914
Gross unrealized depreciation                                          -
                                                              ----------
Net unrealized appreciation                                     $136,914
                                                               =========

           Signature                            Title



Douglas K. Rogers    Executive Vice and President and Director
Douglas K. Rogers


Alex R. Meitzner     Chairman of the Board and Director
Alex R. Meitzner


Robin K. Pinkerton   President, Secretary, Treasurer and
Robin K. Pinkerton   Director

                                             Robin Pinkerton