Exhibit 2 under Form N-1A
                                            Exhibit 3(ii) under Item 601/Reg. SK


                    FEDERATED MUNICIPAL SECURITIES FUND, INC.

               (formerly: Liberty Municipal Securities Fund, Inc.)

                                  Amendment #11
                                 to the By-Laws

                          (effective February 23, 1998)


Delete Sections 1, 2, 3, 4 & 5 from Article IV, OFFICERS, and replace with the
following:

      Section 1. GENERAL PROVISIONS. The Officers of the Corporation shall be a
      President, one or more Vice Presidents, a Treasurer, and a Secretary. The
      Board of Directors, in its discretion, may elect or appoint a Chairman of
      the Board of Directors and other Officers or agents, including one or more
      Assistant Vice Presidents, one or more Assistant Secretaries, and one or
      more Assistant Treasurers. A Vice President, the Secretary or the
      Treasurer may appoint an Assistant Vice President, an Assistant Secretary
      or an Assistant Treasurer, respectively, to serve until the next election
      of Officers. Two or more offices may be held by a single person except the
      offices of President and Vice President may not be held by the same person
      concurrently. It shall not be necessary for any Director or any Officer to
      be a holder of shares in any Series or Class of the Corporation.

      Section 2. ELECTION, TERM OF OFFICE AND QUALIFICATIONS. The Officers shall
      be elected annually by the Board of Directors at its Annual Meeting. Each
      Officer shall hold office for one year and until the election and
      qualification of his successor, or until earlier resignation or removal.
      The Chairman of the Board of Directors, if there is one, shall be elected
      annually by and from the Directors, and serve until a successor is so
      elected and qualified, or until earlier resignation or removal.

      Section 3. REMOVAL. Any Officer elected by the Board of Directors or whose
      appointment has been ratified by the Board of Directors may be removed
      with or without cause at any time by a majority vote of all of the
      Directors. Any other employee of the Corporation may be removed or
      dismissed at any time by the President.

      Section 4. RESIGNATIONS. Any Officer may resign at any time by giving
      written notice to the Board of Directors. Any such resignation shall take
      effect at the time specified therein or, if no time is specified, at the
      time of receipt. Unless otherwise specified , the acceptance of such
      resignation shall not be necessary to make it effective.

      Section 5. VACANCIES. Any vacancy in any of the offices, whether by
      resignation, removal or otherwise, may be filled for the unexpired portion
      of the term by the President. A vacancy in the office of Assistant Vice
      President may be filled by a Vice President; in the office of by the
      Secretary; or in the office of Assistant Treasurer by the Treasurer. Any
      appointment to fill any vacancy shall serve subject to ratification by the
      Board of Directors at its next Regular Meeting.