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Alternate Purchase Plans and Sales Charge Breakpoints
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Tax-Free
Trust of Arizona provides you with the opportunity to invest in the Trust
through two separate classes of shares. All classes represent interests
in the same portfolio of Arizona Obligations. The classes of shares offered
to individuals differ in their sales charge structures and ongoing expenses,
as described below. You should choose the class that best suits your own
circumstances and needs.
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Class
A Shares
"Front-Payment Class" |
Class
C Shares
"Level-Payment Class" |
| Initial
Sales Charge |
Class
A Shares are offered at net asset value plus a maximum sales charge
of 4%, paid at the time of purchase. Thus, your investment is reduced
by the applicable sales charge. Check with your financial professional to see if qualify for a reduced sales charge. |
None.
Class C Shares are offered at net asset value with no sales charge
payable at the time of purchase. |
| Contingent
Deferred Sales Charge ("CDSC") |
None
(except for certain purchases of $1 million or more). |
A
maximum CDSC of 1% is imposed upon the redemption of Class C Shares
held for less than 12 months. No CDSC applies to Class C shares acquired
through the reinvestment of dividends or distributions. |
| Distribution
and Service Fees |
A
distribution fee of 0.15 of 1% is imposed on the average
annual net assets represented by the Class A Shares. |
Level
charge for distribution and service fees for 6 years after the date
of purchase at the aggregate annual rate of 1% of the average net
assets represented by the Class C Shares. |
| Other
Information |
The
initial sales charge is waived or reduced in some cases. Larger purchases
qualify for lower sales charges. |
Class
C shares, together with a pro-rata portion of all Class C shares acquired
through reinvestment of dividends and other distributions paid in
additional Class C Shares, automatically convert to Class A Shares
after 6 years |
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You
may be entitled to substantial reductions in sales charges based on Class A
Shares you or other members of your family already own. Be sure you tell your
financial professional about all those holdings so any reduction in sales charges
on your purchase can be correctly computed. A “single purchaser” will
pay a sales charge based on the value at the time of purchase of his or her
aggregate holdings of Class A Shares of the Fund and Class A Shares of any of
the other funds in the Aquila Group of Funds in accordance with
the following table: |
INVESTMENT |
SALES CHARGE |
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Less
than $25,000 |
4.00% |
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$25,000
but less than $50,000 |
3.75% |
|
$50,000
but less than $100,000 |
3.50% |
|
$100,000
but less than $250,000 |
3.25% |
|
$250,000
but less than $500,000 |
3.00% |
|
$500,000
but less than $1,000,000 |
2.50% |
|
$1,000,000
but less than $2,500,000* |
0.00% |
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$2,500,000
but less than $5,000,000* |
0.00% |
|
$5,000,000
or more* |
0.00% |
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*A Contingent Deferred Sales Charge (CDSC) applies to purchases of Class A Shares over $1 million
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If shares are redeemed in |
Year 1 |
Year 2 |
$1,000,000
but less than $2,500,000 |
1.00% |
1.00% |
| $2,500,000
but less than $5,000,000 |
0.50% |
0.25% |
$5,000,000
or more |
0.00% |
0.00% |
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