NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
investment company. The Trust's investment objective is to manage a portfolio of high quality securities while
providing high current income exempt from regular federal and New Jersey state income tax consistent with the
preservation of capital. The ability of issuers of debt securities held by the Trust to meet their obligations may be
affected by economic developments in the state, a specific industry or region. No assurance can be given that the
Trust's investment objective will be achieved.
The following is a summary of significant accounting policies followed by the Trust.
SECURITIES VALUATION: Municipal securities (including commitments to purchase such securities on a
"when-issued" basis) are valued on the basis of prices provided by a pricing service which uses information with
respect to transactions in bonds, quotations from bond dealers, market transactions in comparable securities and
various relationships between securities in determining values. Any securities or other assets for which such
current market quotations are not readily available are valued at fair value as determined in good faith under
procedures established by and under the general supervision and responsibility of the Trust's Board of Directors.
Short-term securities which mature in more than 60 days are valued at current market quotations. Short-term
securities which mature in 60 days or less are valued at amortized cost if their term to maturity from date of
purchase is 60 days or less, or by amortizing their value on the 61st day prior to maturity, if their original term to
maturity from date of purchase exceeded 60 days.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are recorded on
the trade date. Realized and unrealized gains and losses are calculated on the identified cost basis. Interest
income is recorded on the accrual basis and the Trust accretes original issue discounts or amortizes premium on
securities purchased using the inte