UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   -----------
                                    FORM 10-Q
                                   -----------

     [X] QUARTERLY REPORT PURSUANT TO SECTION 12 OR 15(D) OF THE SECURITIES
           EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED MARCH 31, 2006

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                                  ACT OF 1934

            FOR THE TRANSITION PERIOD FROM ___________ TO ___________

                                   -----------
                         COMMISSION FILE NUMBER 0-19564
                                   -----------

                       MUNICIPAL SECURITIES PURCHASE, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

            DELAWARE                                         13-3633082
------------------------------------------       -------------------------------
(State or other jurisdiction incorporation       (I.R.S. Employer Identification
          or organization)                                         No.)


  201 HIGH RIDGE ROAD, STAMFORD,
           CONNECTICUT                                        06927
--------------------------------------------------------------------------------
(Address of principal executive offices)                    (Zip Code)

       (REGISTRANTS TELEPHONE NUMBER, INCLUDING AREA CODE) (203) 357-4000


           SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

                                      NONE

           SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:

                               TITLE OF EACH CLASS

                    COMMON STOCK, PAR VALUE $10.00 PER SHARE

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes X  No__.
                                      --

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated  filer, or a  non-accelerated  filer. See definition of "accelerated
filer and large  accelerated  filer" in Rule 12b-2 of the Exchange  Act.  (Check
one):

Large accelerated filer__  Accelerated filer__  Non-accelerated  filer X
                                                                       --

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes __ No X.
                                           --

At April 25, 2006, 10 shares of voting common stock,  which  constitutes  all of
the  outstanding  common  equity,  with a par  value of $10.00  per  share  were
outstanding.

REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b)
OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED  DISCLOSURE
FORMAT.


<PAGE>


                       MUNICIPAL SECURITIES PURCHASE, INC.




                                                                           PAGE


PART I.       FINANCIAL INFORMATION

Item 1.    Financial Statements
                Statement of Financial Position                               1
                Statement of Income                                           2
                Statement of Changes in Shareowner's Equity                   3
                Statement of Cash Flows                                       4
                Notes to Unaudited Interim Financial Statements               5

Item 2.    Management's Discussion and Analysis of
           Results of Operations and Financial Condition                      6

Item 4.    Controls and Procedures                                            7


PART II.      OTHER INFORMATION

Item 6.    Exhibits                                                           8
Signatures                                                                    9




Unless the context otherwise requires, the "Company," "Municipal-SPI," "We,"
"Us," or "Our" shall mean Municipal Securities Purchase, Inc.


FORWARD-LOOKING STATEMENTS

This document contains "forward-looking statements" - that is, statements
related to future, not past, events. In this context, forward-looking statements
often address our expected future business and financial performance, and often
contain words such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," or "will." Forward-looking statements by their nature address matters
that are, to different degrees, uncertain. For us, particular uncertainties
arise from the behavior of financial markets, including fluctuations in interest
rates and from numerous other matters of national, regional and global scale,
including those of a political, economic, business, competitive or regulatory
nature. These uncertainties may cause our actual future results to be materially
different than those expressed in our forward-looking statements. We do not
undertake to update our forward-looking statements.


<PAGE>


                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                       MUNICIPAL SECURITIES PURCHASE, INC.

                         Statement of Financial Position
<TABLE>
<CAPTION>

                                                                                      MARCH 31,          DECEMBER 31,
                                                                                        2006                 2005
                                                                                    ------------         ------------
                                          ASSETS                                    (unaudited)
<S>                                                                                <C>                   <C>
Liquidity fees receivable                                                           $  1,332,253         $  1,149,615
Due from GE Capital                                                                      309,036            2,854,275
                                                                                    ------------         ------------
             Total assets                                                           $  1,641,289         $  4,003,890
                                                                                    ============         ============

               LIABILITIES AND SHAREOWNER'S EQUITY

Deferred liquidity fee income                                                        $   399,938           $  393,002
Accounts payable and accrued expenses                                                     51,863               13,700
                                                                                    ------------         ------------
             Total liabilities                                                           451,801              406,702
                                                                                    ------------         ------------

Common stock, par value $10.00 per share. Authorized,
    issued, and outstanding 10 shares                                                        100                  100
Additional paid-in capital                                                               822,145              822,145
Retained earnings                                                                        367,243            2,774,943
                                                                                    ------------         ------------
             Total shareowner's equity                                                 1,189,488            3,597,188
                                                                                    ------------         ------------
             Total liabilities and shareowner's equity                              $  1,641,289         $  4,003,890
                                                                                    ============         ============
</TABLE>

See accompanying notes to unaudited interim financial statements.


                                       1
<PAGE>

                       MUNICIPAL SECURITIES PURCHASE, INC.

                               Statement of Income

                                   (Unaudited)

                                                    ----------------------------
                                                         THREE-MONTHS ENDED
                                                              MARCH 31
                                                    ----------------------------
                                                       2006             2005
                                                    ----------       -----------

Liquidity fee income                                $1,067,286       $ 1,567,150
                                                    ----------       -----------
             Total revenues                          1,067,286         1,567,150
                                                    ----------       -----------

General and administrative expenses                     49,216            44,138
GE Capital commitment fees                              38,251            53,703
                                                    ----------       -----------
             Total operating expenses                   87,467            97,841
                                                    ----------       -----------

             Income before provision for
               income taxes                            979,819         1,469,309
                                                    ----------       -----------

Income tax expense:
    Federal                                            318,931           481,473
    State and local                                     68,588           103,543
                                                    ----------       -----------

             Total income tax expense                  387,519           585,016
                                                    ----------       -----------

             Net income                             $  592,300       $   884,293
                                                    ==========       ===========

See accompanying notes to unaudited interim financial statements.

                                       2
<PAGE>

                       MUNICIPAL SECURITIES PURCHASE, INC.

                   Statement of Changes in Shareowner's Equity

                   Three-months ended March 31, 2006 and 2005

                                   (Unaudited)
<TABLE>
<CAPTION>
                                                      ADDITIONAL
                                         COMMON        PAID-IN          RETAINED
                                          STOCK        CAPITAL          EARNINGS           TOTAL
<S>                                     <C>            <C>             <C>                <C>
Balance, December 31, 2004              $   100        $ 822,145       $5,614,291         $6,436,536
Dividends paid                                                         (6,000,000)        (6,000,000)
Net income                                                                884,293            884,293
                                        ------------------------------------------------------------
Balance, March 31, 2005                 $   100        $ 822,145        $ 498,584         $1,320,829
                                        ------------------------------------------------------------

Balance, December 31, 2005              $   100        $ 822,145       $2,774,943         $3,597,188
Dividends paid                                                         (3,000,000)        (3,000,000)
Net income                                                                592,300            592,300
                                        ------------------------------------------------------------
Balance, March 31, 2006                 $   100        $ 822,145        $ 367,243        $1,189,488
                                        ============================================================
</TABLE>

See accompanying notes to unaudited interim financial statements.

                                       3
<PAGE>

                       MUNICIPAL SECURITIES PURCHASE, INC.


                             Statement of Cash Flows

                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                   -------------------------------
                                                                                        THREE-MONTHS ENDED
                                                                                             MARCH 31
                                                                                   -------------------------------
                                                                                      2006               2005
                                                                                   -----------         -----------
<S>                                                                                 <C>                <C>
Operating activities:
Net income                                                                         $   592,300         $   884,293
    Adjustments to reconcile net income to net cash
      provided by operating activities:
        Change in due from GE Capital                                                2,545,239           5,041,437
        Change in liquidity fees receivable                                           (182,638)            159,306
        Change in deferred liquidity fee income                                          6,936            (104,010)
        Change in accounts payable and accrued expenses                                 38,163              18,974
                                                                                   -----------         -----------
           Cash from operating activities                                            3,000,000           6,000,000

Financing activities:
    Dividends paid                                                                  (3,000,000)         (6,000,000)
                                                                                   -----------         -----------
           Cash used for financing activities                                       (3,000,000)         (6,000,000)

Net change  in cash and equivalents                                                          -                   -
Cash and equivalents at beginning of period                                                  -                   -
                                                                                   -----------         -----------
Cash and equivalents at the end of period                                          $         -         $         -
                                                                                   ===========         ===========
</TABLE>

See accompanying notes to unaudited interim financial statements.

                                       4
<PAGE>

                       MUNICIPAL SECURITIES PURCHASE, INC.

                 NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS

(1)           BUSINESS DESCRIPTION

              Municipal   Securities   Purchase,   Inc.   (the   Company)  is  a
              wholly-owned  subsidiary of GE Funding Services Inc. (the Parent),
              which is a  wholly-owned  subsidiary  of GEI,  Inc.,  and in turn,
              wholly owned by General Electric Capital Corporation (GE Capital),
              the ultimate parent of which is General  Electric Company (GE). In
              the  fourth  quarter  of  2003,  FGIC  Securities  Purchase,  Inc.
              (FGIC-SPI) changed its name to Municipal Securities Purchase, Inc.
              The Company provides liquidity for certain floating rate municipal
              securities whereby the Company will, under certain  circumstances,
              purchase  such  securities  in the event they are  tendered by the
              holders  as  permitted  under  the  terms of the  respective  bond
              indentures.  As of March 31, 2006,  the Company had  approximately
              $2.5  billion (par amount and  interest) of potential  obligations
              under  such  arrangements.  When  issued,  each  of the  liquidity
              facilities  had a  term  not  exceeding  five  years  (subject  to
              renewal). In order to obtain funds to purchase the securities,  in
              the event such  purchases are  necessary,  the Company has entered
              into standby loan agreements with GE Capital totaling $2.5 billion
              as of March  31,  2006,  under  which GE  Capital  is  irrevocably
              obligated  to lend funds as needed for the Company to purchase the
              securities.

              BASIS OF CONSOLIDATION

              The  preparation of financial  statements in conformity  with U.S.
              generally accepted  accounting  principles  requires management to
              make estimates and assumptions  that affect  reported  amounts and
              related  disclosures.  Actual  results  could  differ  from  those
              estimates.

              The  unaudited  interim   financial   statements  of  the  Company
              contained in this report reflect all normal recurring  adjustments
              necessary,  in the opinion of management,  for a fair statement of
              income, financial position and cash flows. The results reported in
              these  quarterly  financial  statements  should not be regarded as
              necessarily  indicative  of results  that may be expected  for the
              entire year. We label our quarterly  information  using a calendar
              convention,  that is, first quarter is labeled as ending March 31,
              second  quarter as ending on June 30, and third  quarter as ending
              on  September  30. It is our  longstanding  practice to  establish
              interim  quarterly  closing dates using a fiscal  calendar,  which
              requires  our  business to close  their  books on a Saturday.  The
              effects  of this  practice  are  modest  and only  exist  within a
              reporting year.

              These unaudited  interim  financial  statements  should be read in
              conjunction  with  the  financial  statements  and  related  notes
              included in the 2005 Form 10-K.

(2)           INCOME TAXES

              We are  included  in GE's  consolidated  U.S.  federal  income tax
              return under an intercompany  tax-sharing agreement. The provision
              for current tax expense  includes  our effect on the  consolidated
              return. We provide for taxes as if we filed a separate return.



                                       5
<PAGE>


ITEM 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF  OPERATIONS AND
              FINANCIAL CONDITION

              RESULTS OF OPERATIONS

              REVENUES

              We  provide   liquidity   facilities  for  certain  floating  rate
              municipal securities whereby we will, under certain circumstances,
              purchase  such  securities  in the event they are  tendered by the
              holders.  We  earn  liquidity  fees  from  the  issuers  of  these
              securities,  municipal  governments in the U.S., for providing the
              liquidity facilities.

              During 2005 and the three-months ended March 31, 2006, we did not
              commit to any new liquidity facilities.

              We earned  liquidity fees of  approximately  $1.1 million and $1.6
              million  during the  three-months  ended  March 31, 2006 and 2005,
              respectively.  The total  liquidity  facility in force as of March
              31, 2006 and March 31,  2005 was  approximately  $2.5  billion and
              $3.2 billion, respectively.

              OPERATING EXPENSES

              We incurred $87,467 and $97,841 of total operating expenses during
              the  three-months  ended  March 31,  2006 and 2005,  respectively.
              Included in total operating  expenses were commitment fees owed to
              GE Capital under the standby loan  agreements,  which are based on
              the outstanding  par in force on each of the liquidity  facilities
              at a rate of 0.625 basis points.  Commitment fees were $38,251 and
              $53,703  for the  three-months  ended  March  31,  2006 and  2005,
              respectively.  The decrease in  commitment  fees from 2005 to 2006
              corresponds with the respective decrease in liquidity fees earned,
              which is also based upon the par in force on each of the liquidity
              facilities  outstanding.  Total  operating  expenses also includes
              general  and  administrative   expenses,   which  are  principally
              comprised of intercompany overhead expense allocation. General and
              administrative   expenses   were   $49,216  and  $44,138  for  the
              three-months ended March 31, 2006 and 2005, respectively.

              INCOME TAX EXPENSE

              The statutory U.S. Federal tax rate during the three-months  ended
              March 31, 2006 and 2005 was 35%. Our effective tax rate was 39.55%
              including the net effect of state taxes.

              CAPITAL RESOURCES AND LIQUIDITY

              Liquidity is a measure of the ability to generate  sufficient cash
              to meet cash  obligations  as they come due.  The  largest  use of
              potential  liquidity  would be if we were required to purchase all
              securities under the liquidity facilities issued. Since inception,
              we have not been required to purchase any  securities.  If we were
              required to purchase such securities, we would draw on the standby
              loan agreements with GE Capital. Since the standby loan agreements
              with GE Capital are  irrevocable  during the period the  liquidity
              agreements  are   outstanding,   we  believe  we  have  sufficient
              liquidity in the event that we are required to fund any draw downs
              under the liquidity facilities issued.

              Our other  primary  source of cash is from  liquidity  fee income,
              which we lend to GE  Capital.  We  believe  that such  income  and
              access to the intercompany receivable from GE Capital ($309,036 at
              March  31,   2006)  is   sufficient   to  fund  our   general  and
              administrative expenses.

                                       6
<PAGE>

              Net cash provided by operating activities was $3.0 million for the
              three-months ended March 31, 2006 as we collected a portion of the
              intercompany receivable from GE Capital. We used the cash to pay a
              $3.0 million  dividend to the Parent,  resulting in a $3.0 million
              financing  cash outflow  during the  three-months  ended March 31,
              2006. There were no cash flows related to investing activities for
              the three-months ended March 31, 2006.

ITEM 4.       CONTROLS AND PROCEDURES

              Under the  direction of our Chairman of the Board  (serving as the
              principal  executive  officer) and Vice  President  and  Treasurer
              (serving  as  the  chief  financial  officer),  we  evaluated  our
              disclosure  controls  and  procedures  and  internal  control over
              financial reporting and concluded that (i) our disclosure controls
              and  procedures  were  effective as of March 31, 2006, and (ii) no
              change in  internal  control  over  financial  reporting  occurred
              during the  quarter  ended  March 31,  2006,  that has  materially
              affected,  or is  reasonably  likely to  materially  affect,  such
              internal control over financial reporting.


                                       7
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 6.  EXHIBITS


              Exhibit  31(a) -  Certification  Pursuant to Rules  13a-14(a)  and
              15d-14(a) under the Securities Exchange Act of 1934, as Amended.

              Exhibit  31(b) -  Certification  Pursuant to Rules  13a-14(a)  and
              15d-14(a) under the Securities Exchange Act of 1934, as Amended.

              Exhibit 32 - Certification Pursuant to 18 U.S.C. Section 1350.




                                       8
<PAGE>

                                   SIGNATURES


Pursuant to the  requirements  of Section 13 or 15(d) of the  Securities  Act of
1934,  the  registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

                       MUNICIPAL SECURITIES PURCHASE, INC.
                                  (Registrant)


April 26, 2006                           /s/ LeAnn Rogers
---------------                          ---------------------------------------
Date                                              LeAnn Rogers
                                                  Chairman
                                                  (Principal Executive Officer)

April 26, 2006                           /s/ Peter Graham
---------------                          ---------------------------------------
Date                                              Peter Graham
                                                  Vice President and Treasurer
                                                  (Principal Financial and
                                                  Accounting Officer)





                                       9