<DOCUMENT>
<TYPE>EX-99.2.K.4
<SEQUENCE>7
<FILENAME>ecf4-1815_5603819ex992k4.txt
<TEXT>
                                                                 Exhibit (k)(4)


==============================================================================

                            AUCTION AGENT AGREEMENT

                                    between

                     MUNIYIELD MICHIGAN INSURED FUND, INC.

                                      and

                             THE BANK OF NEW YORK

                            Dated as of         , 2004

                                  Relating to

                        AUCTION MARKET PREFERRED STOCK

                                   ("AMPS"),

                                   Series D

                                      of

                     MUNIYIELD MICHIGAN INSURED FUND, INC.



==============================================================================


<PAGE>

      THIS AUCTION AGENT AGREEMENT, dated as of [ ], 2004, is between
MUNIYIELD MICHIGAN INSURED FUND, INC., a Maryland corporation (the "Company"),
and THE BANK OF NEW YORK, a New York banking corporation.

      The Company proposes to duly authorize and issue 1,000 shares of Auction
Market Preferred Stock, Series D ("Series D AMPS") with a par value of $.10
per share and a liquidation preference of $25,000 per share plus an amount
equal to accumulated but unpaid dividends (whether or not earned or declared),
pursuant to the Company's Articles Supplementary (as defined below). The
Series D AMPS are sometimes referred to as the "AMPS." A separate Auction (as
defined below) will be conducted for each series of AMPS. The Company desires
that The Bank of New York perform certain duties as agent in connection with
each Auction of shares of AMPS (in such capacity, the "Auction Agent"), and as
the transfer agent, registrar, dividend disbursing agent and redemption agent
with respect to the shares of AMPS (in such capacity, the "Paying Agent"),
upon the terms and conditions of this Agreement, and the Company hereby
appoints The Bank of New York as said Auction Agent and Paying Agent in
accordance with those terms and conditions (hereinafter generally referred to
as the "Auction Agent," except in Sections 3 and 4 below).

      NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein, the Company and the Auction Agent agree as
follows:

I.    DEFINITIONS AND RULES OF CONSTRUCTION.

      1.1.  Terms Defined by Reference to Articles Supplementary.

Capitalized terms not defined herein shall have the respective meanings
specified in the Articles Supplementary.

      1.2.  Terms Defined Herein.

As used herein and in the Settlement Procedures (as defined below), the
following terms shall have the following meanings, unless the context
otherwise requires:

            (a) "Affiliate" shall mean any Person, other than Merrill Lynch,
            Pierce, Fenner & Smith Incorporated, made known to the Auction
            Agent to be controlled by, in control of, or under common control
            with, the Company or its successors.

            (b) "Agent Member" of any Person shall mean such Person's agent
            member of the Securities Depository that will act on behalf of a
            Bidder.

            (c) "Articles Supplementary" shall mean the Articles Supplementary
            of the Company, establishing the powers, preferences and rights of
            the AMPS, filed on , 2004 with the state of Maryland.

            (d) "Auction" shall have the meaning specified in Section 2.1
            hereof.

            (e) "Auction Agent Acceptance Fee" means an acceptance fee as set
            forth in a written agreement between the Auction Agent and the
            Company.

                                      2
<PAGE>


            (f) "Auction Agent Fee" means the fees, other than the Auction
            Agent Acceptance Fee, set forth in a written agreement signed by
            the Auction Agent and the Company.

            (g) "Auction Procedures" shall mean the Auction Procedures that
            are set forth in Paragraph 10 of the Articles Supplementary.

            (h) "Authorized Officer" shall mean each Vice President, Assistant
            Vice President, and Assistant Treasurer of the Auction Agent
            assigned to the Dealing and Trading Group of its Corporate Trust
            Department, and every other officer or employee of the Auction
            Agent designated as an "Authorized Officer" for purposes hereof in
            a written communication to the Company.

            (i) "Broker-Dealer Agreement" shall mean each agreement between
            the Auction Agent and a Broker-Dealer substantially in the form
            attached hereto as Exhibit A.

            (j) "Company Officer" shall mean the Chairman and Chief Executive
            Officer, the President, each Vice President (whether or not
            designated by a number or word or words added before or after the
            title "Vice President"), the Secretary, the Treasurer, each
            Assistant Secretary and each Assistant Treasurer of the Company
            and every other officer or employee of the Company designated as a
            "Company Officer" for purposes hereof in a written notice from the
            Company to the Auction Agent.

            (k) "Holder" shall be a holder of record of one or more shares of
            AMPS, listed as such in the stock register maintained by the
            Paying Agent pursuant to Section 4.6 hereof.

            (l) "Settlement Procedures" shall mean the Settlement Procedures
            attached as Exhibit A to the Broker-Dealer Agreement.

      1.3.  Rules of Construction.

Unless the context or use indicates another or different meaning or intent,
the following rules shall apply to the construction of this Agreement:

            (a) Words importing the singular number shall include the plural
            number and vice versa.

            (b) The captions and headings herein are solely for convenience of
            reference and shall not constitute a part of this Agreement nor
            shall they affect its meaning, construction or effect.

            (c) The words "hereof," "herein," "hereto," and other words of
            similar import refer to this Agreement as a whole.

                                      3
<PAGE>


            (d) All references herein to a particular time of day shall be to
            Eastern Standard Time.

II.   THE AUCTION.

      2.1.  Purpose; Incorporation by Reference of Auction Procedures and
            Settlement Procedures.

            (a) The Articles Supplementary provide that the Applicable Rate on
            shares of Series D AMPS for each Dividend Period therefor after
            the Initial Dividend Period shall be the rate per annum that a
            commercial bank, trust company or other financial institution
            appointed by the Company advises results from implementation of
            the Auction Procedures. The Board of Directors of the Company has
            adopted a resolution appointing The Bank of New York as Auction
            Agent for purposes of the Auction Procedures. The Auction Agent
            hereby accepts such appointment and agrees that, on each Auction
            Date, it shall follow the procedures set forth in this Section 2
            and the Auction Procedures for the purpose of determining the
            Applicable Rate for the AMPS for the next Dividend Period
            therefor. Each periodic operation of such procedures is
            hereinafter referred to as an "Auction."

            (b) All of the provisions contained in the Auction Procedures and
            in the Settlement Procedures are incorporated herein by reference
            in their entirety and shall be deemed to be a part hereof to the
            same extent as if such provisions were set forth fully herein. In
            the case of any conflict between the terms of any document
            incorporated herein by reference and the terms hereof, the Auction
            Agent is, subject to its obligations as set forth in Section 6.1,
            authorized to perform its duties according to the terms hereof,
            and shall have no liability for so doing.

      2.2.  Preparation for Each Auction; Maintenance of Registry of Existing
            Holders.

            (a) As of the date hereof, the Company shall provide the Auction
            Agent with a list of the Broker-Dealers and shall cause to be
            delivered to the Auction Agent for execution by the Auction Agent
            a Broker-Dealer Agreement signed by each such Broker-Dealer. The
            Auction Agent shall keep a list of Broker-Dealers with whom it has
            signed such Broker-Dealer Agreements, and shall endeavor to keep
            such list current and accurate and shall indicate thereon, or on a
            separate list, the identity of each Existing Holder, if any, whose
            most recent Order was submitted by a Broker-Dealer on such list
            and resulted in such Existing Holder continuing to hold or
            purchasing shares of AMPS. Not later than five Business Days prior
            to any Auction Date for which any change in such list of
            Broker-Dealers is to be effective, the Company shall notify the
            Auction Agent in writing of such change and, if any such change is
            the addition of a Broker-Dealer to such list, the Company shall
            cause to be delivered to the Auction Agent for execution by the
            Auction Agent a Broker-Dealer Agreement signed by such
            Broker-Dealer. The

                                      4
<PAGE>


            Auction Agent shall have entered into a Broker-Dealer
            Agreement with each Broker-Dealer prior to the participation of
            any such Broker-Dealer in any Auction.

            (b) In the event that the Auction Date for any Auction shall be
            changed after the Auction Agent shall have given the notice
            referred to in clause (vii) of Paragraph (a) of the Settlement
            Procedures, the Auction Agent, by such means as the Auction Agent
            deems practicable, shall give notice of such change to the
            Broker-Dealers not later than the earlier of 9:15 A.M. on the new
            Auction Date or 9:15 A.M. on the old Auction Date.

            (c) The provisions contained in paragraph 2 of the Articles
            Supplementary concerning Special Dividend Periods and the
            notification of a Special Dividend Period will be followed by the
            Company and, to the extent applicable, the Auction Agent, and the
            provisions contained therein are incorporated herein by reference
            in their entirety and shall be deemed to be a part of this
            Agreement to the same extent as if such provisions were set forth
            fully herein.

            (d) (i) On each Auction Date, the Auction Agent shall determine
            the Reference Rate and the Maximum Applicable Rate. If the rate
            obtained by the Auction Agent is not quoted on an interest or
            discount basis, the Auction Agent shall convert the quoted rate to
            an interest rate after consultation with the Company as to the
            method of such conversion. Not later than 9:30 A.M. on each
            Auction Date, the Auction Agent shall notify the Company and the
            Broker-Dealers of the Reference Rate so determined and of the
            Maximum Applicable Rate.

                  (ii) If the Reference Rate is the applicable LIBOR Rate and
            such rate is to be based on rates supplied by LIBOR Dealers and
            one or more of the LIBOR Dealers shall not provide a quotation for
            the determination of the applicable LIBOR Rate, the Auction Agent
            promptly shall notify the Company so that the Company can
            determine whether to select a Substitute LIBOR Dealer or
            Substitute LIBOR Dealers to provide the quotation or quotations
            not being supplied by any LIBOR Dealer or LIBOR Dealers. The
            Company promptly shall advise the Auction Agent of any such
            selection. If the Company does not select any such Substitute
            LIBOR Dealer or Substitute LIBOR Dealers, then the rates shall be
            supplied by the remaining LIBOR Dealer or LIBOR Dealers.

                  (iii) If, after the date of this Agreement, there is any
            change in the prevailing rating of AMPS by either of the rating
            agencies (or Substitute Rating Agency or successor rating agency)
            referred to in the definition of the Maximum Applicable Rate,
            subject to the provisions of paragraph 12 of the Articles
            Supplementary, thereby resulting in any change in the
            corresponding applicable percentage or corresponding applicable
            spread for the AMPS, as set forth in said definition (the
            "Percentage or Spread"), the Company shall notify the Auction
            Agent in writing of such change in the Percentage or Spread prior
            to 9:00 A.M. on the Auction Date for AMPS next succeeding such
            change. The Percentage for the

                                      5
<PAGE>


            AMPS on the date of this Agreement is as specified in paragraph
            10(a)(vii) of the Articles Supplementary. The Auction Agent shall
            be entitled to conclusively rely on the last Percentage or Spread
            of which it has received notice from the Company (or, in the
            absence of such notice, the Percentage or Spread set forth in the
            preceding sentence) in determining the Maximum Applicable Rate as
            set forth in Section 2.2(d)(i) hereof.

            (e) The Auction Agent shall maintain by series a current registry
            of the Existing Holders of the shares of each series of AMPS for
            purposes of each Auction. The Company shall use its best efforts
            to provide or cause to be provided to the Auction Agent within ten
            Business Days following the date of the Closing a list of the
            initial Existing Holders of each series of AMPS, and the
            Broker-Dealer of each such Existing Holder through which such
            Existing Holder purchased such shares. The Auction Agent may
            conclusively rely upon, as evidence of the identities of the
            Existing Holders, such list, the results of each Auction and
            notices from any Existing Holder, the Agent Member of any Existing
            Holder or the Broker-Dealer of any Existing Holder with respect to
            such Existing Holder's transfer of any shares of AMPS to another
            Person.

            (f) In the event of any partial redemption of any series of AMPS,
            upon notice by the Company to the Auction Agent of such partial
            redemption, the Auction Agent promptly shall request the
            Securities Depository to notify the Auction Agent of the
            identities of the Agent Members (and the respective numbers of
            shares) from the accounts of which shares have been called for
            redemption and the person or department at such Agent Member to
            contact regarding such redemption, and at least two Business Days
            prior to the Auction preceding the date of redemption with respect
            to shares of such series of AMPS being partially redeemed, the
            Auction Agent shall request each Agent Member so identified to
            disclose to the Auction Agent (upon selection by such Agent Member
            of the Existing Holders whose shares are to be redeemed) the
            number of shares of such series of AMPS of each such Existing
            Holder, if any, to be redeemed by the Company, provided that the
            Auction Agent has been furnished with the name and telephone
            number of a person or department at such Agent Member from which
            it is to request such information. In the absence of receiving any
            such information with respect to an Existing Holder, from such
            Existing Holder's Agent Member or otherwise, the Auction Agent may
            continue to treat such Existing Holder as having ownership of the
            number of shares of such series of AMPS shown in the Auction
            Agent's registry of Existing Holders.

                  (i) The Auction Agent shall register a transfer of the
            ownership of shares of a series of AMPS from an Existing Holder to
            another Existing Holder, or to another Person if permitted by the
            Company, only if (A) such transfer is made pursuant to an Auction
            or (B) if such transfer is made other than pursuant to an Auction,
            the Auction Agent has been notified of such transfer in writing in
            a notice substantially in the form of Exhibit C to the
            Broker-Dealer Agreements, by such Existing Holder or by the Agent
            Member of such Existing Holder. The Auction Agent is not required
            to accept any notice of transfer delivered for an

                                      6
<PAGE>


            Auction unless it is received by the Auction Agent by 3:00 P.M. on
            the Business Day next preceding the applicable Auction Date. The
            Auction Agent shall rescind a transfer made on the registry of the
            Existing Holders of any shares of AMPS if the Auction Agent has
            been notified in writing, in a notice substantially in the form of
            Exhibit D to the Broker-Dealer Agreement, by the Agent Member or
            the Broker-Dealer of any Person that (i) purchased any shares of
            AMPS and the seller failed to deliver such shares or (ii) sold any
            shares of AMPS and the purchaser failed to make payment to such
            Person upon delivery to the purchaser of such shares.

            (g) The Auction Agent may, but shall not be obligated, to request
            that the Broker-Dealers, as set forth in Section 3.2(c) of the
            Broker-Dealer Agreements, provide the Auction Agent with a list of
            their respective customers that such Broker-Dealers believe are
            Beneficial Owners of shares of any series of AMPS. The Auction
            Agent shall keep confidential any such information and shall not
            disclose any such information so provided to any Person other than
            the relevant Broker-Dealer and the Company; provided, however,
            that the Auction Agent reserves the right and is authorized to
            disclose any such information if (i) it is ordered to do so by a
            court of competent jurisdiction or a regulatory body, judicial or
            quasi-judicial agency or authority having the authority to compel
            such disclosure, (ii) it is advised by its counsel that its
            failure to do so would be unlawful or (iii) failure to do so would
            expose the Auction Agent to loss, liability, claim, damage or
            expense for which it has not received indemnity or security
            satisfactory to it.

      2.3.  Auction Schedule.

      The Auction Agent shall conduct Auctions in accordance with the schedule
set forth below. Such schedule may be changed by the Auction Agent with the
consent of the Company, which consent shall not be withheld unreasonably. The
Auction Agent shall give notice of any such change to each Broker-Dealer. Such
notice shall be received prior to the first Auction Date on which any such
change shall be effective. The Auction Agent will follow The Bond Market
Association's Market Practice U.S. Holiday Recommendations for shortened
trading days for bond markets (the "BMA Recommendation") unless the Auction
Agent is instructed otherwise by the Company. In the event of a BMA
Recommendation on an Auction Date, the Submission Deadline will be 11:30 A.M.
instead of 1:00 P.M. and as a result the notice of Auction results will occur
at an earlier time.

                Time                                Event
                ----                                -----
      By 9:30 A.M.             Auction Agent advises the Company   and the
                               Broker-Dealers of the Reference Rate and the
                               Maximum Applicable Rate as set forth in Section
                               2.2(d)(i) hereof.

      9:30 A.M. - 1:00 P.M.    Auction Agent assembles information
                               communicated to it by Broker-Dealers as
                               provided in Paragraph 10(c)(i) of the



                                      7
<PAGE>


                               Articles Supplementary. Submission deadline is
                               1:00 P.M.

      Not earlier than 1:00    Auction Agent makes determinations pursuant to
      P.M.                     Paragraph 10(d)(i) of the Articles
                                Supplementary.

      By approximately         Auction Agent advises the Company of the
      3:00 P.M.                results of the Auction as provided in Paragraph
                               10(d)(ii) of the Articles Supplementary.

                               Submitted Bids and Submitted Sell Orders are
                               accepted and rejected in whole or in part and
                               shares of AMPS allocated as provided in
                               Paragraph 10(e) of the Articles Supplementary.

                               Auction Agent gives notice of the Auction
                               results as set forth in Section 2.4 hereof.

      2.4.  Notice of Auction Results.

      On each Auction Date, the Auction Agent shall notify Broker-Dealers of
the results of the Auction held on such date by telephone or other mutually
acceptable electronic means as set forth in Paragraph (a) of the Settlement
Procedures. Unless instructed otherwise in writing by the Company, the Auction
Agent is authorized to release the Applicable Rate determined as a result of
the Auction for public dissemination.

      2.5.  Broker-Dealers.

            (a) Not later than 12:00 noon on each Auction Date, the Company
            shall pay to the Auction Agent in Federal Funds or similar
            same-day funds an amount in cash equal to (i) in the case of any
            Auction Date immediately preceding a 7-Day Dividend Period, the
            product of (A) a fraction the numerator of which is the number of
            days in such Dividend Period (calculated by counting the first day
            of such Dividend Period but excluding the last day thereof) and
            the denominator of which is 360, times (B) 1/4 of 1%, times (C)
            $25,000 times (D) the sum of the aggregate number of Outstanding
            shares of the series of AMPS for which the Auction is conducted
            and (ii) in the case of any Special Dividend Period, the amount
            determined by mutual consent of the Company and the Broker-Dealers
            pursuant to Section 3.5 of the Broker-Dealer Agreements. The
            Auction Agent shall apply such moneys as set forth in Section 3.5
            of the Broker-Dealer Agreements and shall thereafter remit to the
            Company any remaining funds paid to the Auction Agent pursuant to
            this Section 2.5(a).

            (b) The Company may designate an Affiliate or Merrill Lynch,
            Pierce, Fenner & Smith Incorporated to act as a Broker-Dealer.

            (c) The Auction Agent shall terminate any Broker-Dealer Agreement
            as set forth therein if so directed by the Company.

                                      8
<PAGE>


            (d) Subject to Section 2.5(b) hereof, the Auction Agent from time
            to time shall enter into such Broker-Dealer Agreements as the
            Company shall request.

            (e) Subject to Section 2.2(a), the Auction Agent shall maintain a
            list of Broker-Dealers.

      2.6.  Ownership of Shares of AMPS and Submission of Bids by the Company
            and its Affiliates.

      Neither the Company nor any Affiliate of the Company may submit any Sell
Order or Bid, directly or indirectly, in any Auction, except that an Affiliate
of the Company that is a Broker-Dealer may submit a Sell Order or Bid on
behalf of a Beneficial Owner or a Potential Beneficial Owner. The Company
shall notify the Auction Agent if the Company or, to the best of the Company's
knowledge, any Affiliate of the Company becomes a Beneficial Owner of any
shares of AMPS. Any shares of a series of AMPS redeemed, purchased or
otherwise acquired (i) by the Company shall not be reissued, except in
accordance with the requirements of the Securities Act of 1933, as amended, or
(ii) by its Affiliates shall not be transferred (other than to the Company).
The Auction Agent shall have no duty or liability with respect to enforcement
of this Section 2.6.

      2.7.  Access to and Maintenance of Auction Records.

      The Auction Agent shall afford to the Company, its agents, independent
public accountants and counsel, access at reasonable times during normal
business hours to review and make extracts or copies (at the Company's sole
cost and expense) of all books, records, documents and other information
concerning the conduct and results of Auctions, provided that any such agent,
accountant or counsel shall furnish the Auction Agent with a letter from the
Company requesting that the Auction Agent afford such person access. The
Auction Agent shall maintain records relating to any Auction for a period of
two years after such Auction (unless requested by the Company to maintain such
records for such longer period not in excess of four years, then for such
longer period which shall not be in excess of four years), and such records,
in reasonable detail, shall accurately and fairly reflect the actions taken by
the Auction Agent hereunder. The Company agrees to keep confidential any
information regarding the customers of any Broker-Dealer received from the
Auction Agent in connection with this Agreement or any Auction, and shall not
disclose such information or permit the disclosure of such information without
the prior written consent of the applicable Broker-Dealer to anyone except
such agent, accountant or counsel engaged to audit or review the results of
Auctions as permitted by this Section 2.7, provided that the Company reserves
the right to disclose any such information if it is advised by its counsel
that its failure to do so would (i) be unlawful or (ii) expose it to
liability, unless the Broker-Dealer shall have offered indemnification
satisfactory to the Company. Any such agent, accountant or counsel, before
having access to such information, shall agree to keep such information
confidential and not to disclose such information or permit disclosure of such
information without the prior written consent of the applicable Broker-Dealer,
provided that such agent, accountant or counsel may reserve the right to
disclose any such information if it is advised by its counsel that its failure
to do so would (i) be unlawful or (ii) expose it to liability, unless the
Broker-Dealer shall have offered indemnification satisfactory to such agent,
accountant or counsel. The Auction Agent shall have no liability in connection
with allowing

                                      9
<PAGE>


access to the Company's books, records, documents and other information
pursuant to the terms of this Section 2.7 to the Company, its agents,
independent public accountants and counsel.

III.  THE AUCTION AGENT AS PAYING AGENT.

      3.1.  The Paying Agent.

      The Board of Directors of the Company has adopted a resolution
appointing The Bank of New York as transfer agent, registrar, dividend
disbursing agent and redemption agent for the Company in connection with any
shares of AMPS (in such capacity, the "Paying Agent"). The Paying Agent hereby
accepts such appointment and agrees to act in accordance with its standard
procedures and the provisions of the Articles Supplementary which are
specified herein with respect to the shares of AMPS and as set forth in this
Section 3.

      3.2.  The Company's Notices to the Paying Agent.

      Whenever any shares of AMPS are to be redeemed, the Company promptly
shall deliver to the Paying Agent a Notice of Redemption upon the terms set
forth in Section 4(c) of the Articles Supplementary, which will be mailed by
the Company to each Holder at least five Business Days prior to the date such
Notice of Redemption is required to be mailed pursuant to the Articles
Supplementary. The Paying Agent shall have no responsibility to confirm or
verify the accuracy of any such Notice.

      3.3.  The Company to Provide Funds for Dividends and Redemptions.

            (a) Not later than noon on each Dividend Payment Date, the Company
            shall deposit with the Paying Agent an aggregate amount of Federal
            Funds or similar same-day funds equal to the declared dividends to
            be paid to Holders on such Dividend Payment Date, and shall give
            the Paying Agent irrevocable instructions to apply such funds to
            the payment of such dividends on such Dividend Payment Date.

            (b) If the Company shall give a Notice of Redemption, then by noon
            of the date fixed for redemption, the Company shall deposit in
            trust with the Paying Agent an aggregate amount of Federal Funds
            or similar same-day funds sufficient to redeem such shares of AMPS
            called for redemption and shall give the Paying Agent irrevocable
            instructions and authority to pay the redemption price to the
            Holders of shares of AMPS called for redemption upon surrender of
            the certificate or certificates therefor.

      3.4.  Disbursing Dividends and Redemption Price.

      After receipt of the Federal Funds or similar same-day funds and
instructions from the Company described in Sections 3.3(a) and (b) above, the
Paying Agent shall pay to the Holders (or former Holders) entitled thereto (i)
on each corresponding Dividend Payment Date, dividends on the shares of AMPS
and (ii) on any date fixed for redemption, the redemption price of any shares
of AMPS called for redemption. The amount of dividends for any Dividend Period
to be paid by the Paying Agent to Holders will be determined by the Company as
set forth in

                                      10
<PAGE>


Paragraph 2 of the Articles Supplementary. The redemption price to be paid by
the Paying Agent to the Holders of any shares of AMPS called for redemption
will be determined as set forth in Paragraph 4 of the Articles Supplementary.
The Company shall notify the Paying Agent in writing of a decision to redeem
any shares of AMPS on or prior to the date specified in Section 3.2 above, and
such notice by the Company to the Paying Agent shall contain the information
required to be stated in a Notice of Redemption required to be mailed by the
Company to such Holders. The Paying Agent shall have no duty to determine the
redemption price and may rely conclusively on the amount thereof set forth in
a Notice of Redemption.

IV.   THE PAYING AGENT AS TRANSFER AGENT AND REGISTRAR.

      4.1.  Original Issue of Stock Certificates.

      On the Date of Original Issue for any share of AMPS, one certificate for
each series of AMPS shall be issued by the Company and registered in the name
of Cede & Co., as nominee of the Securities Depository, and countersigned by
the Paying Agent. The Company will give the Auction Agent prior written notice
and instruction as to the issuance and redemption of AMPS.

      4.2.  Registration of Transfer or Exchange of Shares.

      Except as provided in this Section 4.2, the shares of each series of
AMPS shall be registered solely in the name of the Securities Depository or
its nominee. If the Securities Depository shall give notice of its intention
to resign as such, and if the Company shall not have selected a substitute
Securities Depository acceptable to the Paying Agent prior to such
resignation, then upon such resignation, the shares of each series of AMPS, at
the Company's request, may be registered for transfer or exchange, and new
certificates thereupon shall be issued in the name of the designated
transferee or transferees, upon surrender of the old certificate in form
deemed by the Paying Agent properly endorsed for transfer with (a) all
necessary endorsers' signatures guaranteed in such manner and form as the
Paying Agent may require by a guarantor reasonably believed by the Paying
Agent to be responsible, (b) such assurances as the Paying Agent shall deem
necessary or appropriate to evidence the genuineness and effectiveness of each
necessary endorsement and (c) satisfactory evidence of compliance with all
applicable laws relating to the collection of taxes in connection with any
registration of transfer or exchange or funds necessary for the payment of
such taxes.

      4.3.  Removal of Legend.

      Any request for removal of a legend indicating a restriction on transfer
from a certificate evidencing shares of a series of AMPS shall be accompanied
by an opinion of counsel stating that such legend may be removed and such
shares may be transferred free of the restriction described in such legend,
said opinion to be delivered under cover of a letter from a Company Officer
authorizing the Paying Agent to remove the legend on the basis of said
opinion.

      4.4.  Lost, Stolen or Destroyed Stock Certificates.

      The Paying Agent shall issue and register replacement certificates for
certificates represented to have been lost, stolen or destroyed, upon the
fulfillment of such requirements as shall be deemed appropriate by the Company
and by the Paying Agent, subject at all times to

                                      11
<PAGE>


provisions of law, the By-Laws of the Company governing such matters and
resolutions adopted by the Company with respect to lost, stolen or destroyed
securities. The Paying Agent may issue new certificates in exchange for and
upon the cancellation of mutilated certificates. Any request by the Company to
the Paying Agent to issue a replacement or new certificate pursuant to this
Section 4.4 shall be deemed to be a representation and warranty by the Company
to the Paying Agent that such issuance will comply with provisions of
applicable law and the By-Laws and resolutions of the Company.

      4.5.  Disposition of Canceled Certificates; Record Retention.

      The Paying Agent shall retain stock certificates which have been
canceled in transfer or in exchange and accompanying documentation in
accordance with applicable rules and regulations of the Securities and
Exchange Commission for two calendar years from the date of such cancellation.
The Paying Agent, upon written request by the Company, shall afford to the
Company, its agents and counsel access at reasonable times during normal
business hours to review and make extracts or copies (at the Company's sole
cost and expense) of such certificates and accompanying documentation. Upon
request by the Company at any time during this two-year period, the Paying
Agent shall deliver to the Company the canceled certificates and accompanying
documentation. The Company, at its expense, shall retain such records for a
minimum additional period of four calendar years from the date of delivery of
the records to the Company and shall make such records available during this
period at any time, or from time to time, for reasonable periodic, special, or
other examinations by representatives of the Securities and Exchange
Commission. The Company also shall undertake to furnish to the Securities and
Exchange Commission, upon demand, either at their principal office or at any
regional office, complete, correct and current hard copies of any and all such
records.

      4.6.  Stock Register.

      The Paying Agent shall maintain the stock register, which shall contain
a list of the Holders, the number of shares held by each Holder and the
address of each Holder. The Paying Agent shall record in the stock register
any change of address of a Holder upon notice by such Holder. In case of any
written request or demand for the inspection of the stock register or any
other books of the Company in the possession of the Paying Agent, the Paying
Agent will notify the Company and secure instructions as to permitting or
refusing such inspection; provided, however, that the Auction Agent reserves
the right and is authorized to permit such inspection if (i) it is ordered to
do so by a court of competent jurisdiction or a regulatory body, judicial or
quasi-judicial agency or authority having the authority to compel such
disclosure, (ii) it is advised by its counsel that its failure to do so would
be unlawful or (iii) failure to do so would expose the Auction Agent to loss,
liability, claim, damage or expense for which it has not received indemnity or
security satisfactory to it.

      4.7.  Return of Funds.

      Any funds deposited with the Paying Agent by the Company for any reason
under this Agreement, including for the payment of dividends or the redemption
of shares of any series of AMPS, that remain with the Paying Agent after 12
months shall be repaid to the Company upon written request by the Company.

                                      12
<PAGE>


V.    REPRESENTATIONS AND WARRANTIES.

      5.1.  Representations and Warranties of the Company.

      The Company represents and warrants to the Auction Agent that:

                  (i) the Company is duly organized and is validly existing as
            a corporation in good standing under the laws of the State of
            Maryland, and has full power to execute and deliver this Agreement
            and to authorize, create and issue the shares of each series of
            AMPS;

                  (ii) the Company is registered with the Securities and
            Exchange Commission under the Investment Company Act of 1940, as
            amended, as a closed-end, diversified, management investment
            company;

                  (iii) this Agreement has been duly and validly authorized,
            executed and delivered by the Company and constitutes the legal,
            valid and binding obligation of the Company, enforceable against
            the Company in accordance with its terms, subject as to such
            enforceability to bankruptcy, insolvency, reorganization and other
            laws of general applicability relating to or affecting creditors'
            rights and to general equitable principles;

                  (iv) the forms of the certificates evidencing the shares of
            each series of AMPS comply with all applicable laws of the State
            of Maryland;

                  (v) the shares of each series of AMPS have been duly and
            validly authorized by the Company and, upon completion of the
            initial sale of the shares of such series of AMPS and receipt of
            payment therefor, will be validly issued, fully paid and
            nonassessable;

                  (vi) at the time of the offering of the shares of each
            series of AMPS, the shares offered will be registered under the
            Securities Act of 1933, as amended, and no further action by or
            before any governmental body or authority of the United States or
            of any state thereof is required in connection with the execution
            and delivery of this Agreement or will be required in connection
            with the issuance of the shares of each series of AMPS, except
            such action as required by applicable state securities or
            insurance laws, all of which action will have been taken;

                  (vii) the execution and delivery of this Agreement and the
            issuance and delivery of the shares of each series of AMPS do not
            and will not conflict with, violate, or result in a breach of, the
            terms, conditions or provisions of, or constitute a default under,
            the Charter or the By-Laws of the Company, any law or regulation
            applicable to the Company, any order or decree of any court or
            public authority having jurisdiction over the Company, or any
            mortgage, indenture, contract, agreement or undertaking to which
            the Company is a party or by which it is bound; and

                                      13
<PAGE>


                  (viii) no taxes are payable upon or in respect of the
            execution of this Agreement or will be payable upon or in respect
            of the issuance of the shares of each series of AMPS.

      5.2.  Representations and Warranties of the Auction Agent.

      The Auction Agent represents and warrants to the Company that the
Auction Agent is duly organized and is validly existing as a banking
corporation in good standing under the laws of the State of New York, and has
the corporate power to enter into and perform its obligations under this
Agreement.

VI.   THE AUCTION AGENT.

      6.1.  Duties and Responsibilities.

      (a) The Auction Agent is acting solely as agent for the Company
      hereunder and owes no fiduciary duties to any Person except as
      specifically provided by this Agreement. The Auction Agent owes no
      duties to any person other than the Company by reason of this Agreement.

      (b) The Auction Agent undertakes to perform such duties and only such
      duties as are set forth specifically in this Agreement, and no implied
      covenants or obligations shall be read into this Agreement against the
      Auction Agent.

      (c) In the absence of willful misconduct or negligence on its part, the
      Auction Agent shall not be liable for any action taken, suffered or
      omitted by it or for any error of judgment made by it in the performance
      of its duties under this Agreement. The Auction Agent shall not be
      liable for any error of judgment made in the absence of willful
      misconduct unless the Auction Agent shall have been negligent in
      ascertaining (or failing to ascertain) the pertinent facts.

      (d) The Auction Agent shall not be responsible or liable for any failure
      or delay in the performance of its obligations under this Agreement
      arising out of or caused, directly or indirectly, by circumstances
      beyond its reasonable control, including, without limitation, acts of
      God; earthquakes; fires, floods; wars; civil or military disturbances;
      sabotage; acts of war or terrorism; epidemics; riots; interruptions,
      loss or malfunctions of utilities; computer (hardware or software) or
      communications services; accidents; labor disputes (including, without
      limitation, strikes or work stoppages); acts of civil or military
      authority or governmental actions; it being understood that the Auction
      Agent shall use reasonable efforts which are consistent with accepted
      practices in the banking industry to resume performance as soon as
      practicable under the circumstances. In no event shall the Auction Agent
      be responsible or liable for special, indirect or consequential loss or
      damage of any kind whatsoever (including, but not limited to, loss of
      profit), even if the Auction Agent has been advised of the likelihood of
      such loss or damage and regardless of the form of action.

                                      14
<PAGE>


      6.2.  Rights of the Auction Agent.

            (a) The Auction Agent may conclusively rely upon, and shall be
            protected in acting or refraining from acting upon, any
            communication authorized hereby and any written instruction,
            notice, request, direction, consent, report, certificate, share
            certificate or other instrument, paper or document reasonably
            believed by it to be genuine. The Auction Agent shall not be
            liable for acting upon any telephone communication or by other
            electronic means acceptable to the parties authorized hereby which
            the Auction Agent believes in good faith to have been given by the
            Company or by a Broker-Dealer. The Auction Agent may record
            telephone communications with the Company or with the
            Broker-Dealers or with both.

            (b) The Auction Agent may consult with counsel of its choice, and
            the written advice of such counsel shall be full and complete
            authorization and protection in respect of any action taken,
            suffered or omitted by it hereunder in good faith and in reliance
            thereon.

            (c) The Auction Agent shall not be required to advance, expend or
            risk its own funds or otherwise incur or become exposed to
            financial liability in the performance of its duties hereunder.
            The Auction Agent shall be under no liability for interest on any
            money received by it hereunder except as otherwise agreed in
            writing with the Company.

            (d) The Auction Agent may perform its duties and exercise its
            rights hereunder either directly or by or through agents or
            attorneys.

            (e) The Auction Agent shall have no obligation or liability with
            respect to the registration or exemption therefrom of the AMPS
            under the federal or state securities laws or with respect to the
            sufficiency or the conformity of any transfer of the AMPS to the
            terms of the Auction Agreement, the Broker-Dealer Agreements, the
            AMPS or any other document contemplated thereby.



      6.3.  Auction Agent's Disclaimer.

      The Auction Agent makes no representation as to the validity or the
adequacy of this Agreement, the Broker-Dealer Agreements or the AMPS.

      6.4.  Compensation, Expenses and Indemnification.

            (a) The Company shall pay to the Auction Agent reasonable
            compensation for all services rendered by it under this Agreement
            and under the Broker-Dealer Agreements as shall be agreed by the
            Auction Agent and the Company from time to time as shall be set
            forth in a separate writing signed by the Company and the Auction
            Agent, subject to adjustments if the AMPS no longer are held of
            record by the Securities Depository or its nominee or if there
            shall be such other change

                                      15
<PAGE>


            as shall increase materially the Auction Agent's obligations
            hereunder or under the Broker-Dealer Agreements.

            (b) The Company shall reimburse the Auction Agent upon its request
            for all reasonable expenses, disbursements and advances incurred
            or made by the Auction Agent in accordance with any provision of
            this Agreement and of the Broker-Dealer Agreements (including the
            reasonable compensation, expenses and disbursements of its agents
            and counsel), except any expense, disbursement or advance
            attributable to its negligence or willful misconduct.

            (c) The Company shall indemnify the Auction Agent for, and hold it
            harmless against, any loss, liability or expense incurred without
            negligence or willful misconduct on its part arising out of or in
            connection with its agency under this Agreement and under the
            Broker-Dealer Agreements, including the costs and expenses of
            defending itself against any claim of liability in connection with
            its exercise or performance of any of its duties hereunder and
            thereunder, except such as may result from its negligence or
            willful misconduct.

VII.  MISCELLANEOUS.

      7.1.  Term of Agreement.

            (a) The term of this Agreement is unlimited unless it shall be
            terminated as provided in this Section 7.1. The Company may
            terminate this Agreement at any time by so notifying the Auction
            Agent, provided that if any AMPS remain outstanding the Company
            shall have entered into an agreement in substantially the form of
            this Agreement with a successor auction agent. The Auction Agent
            may terminate this Agreement upon prior notice to the Company on
            the date specified in such notice, which date shall be no earlier
            than 60 days after delivery of such notice. If the Auction Agent
            resigns while any shares of AMPS remain outstanding, the Company
            shall use its best efforts to enter into an agreement with a
            successor auction agent containing substantially the same terms
            and conditions as this Agreement.

            (b) Except as otherwise provided in this Section 7.1(b), the
            respective rights and duties of the Company and the Auction Agent
            under this Agreement shall cease upon termination of this
            Agreement. The Company's representations, warranties, covenants
            and obligations to the Auction Agent under Sections 5 and 6.4
            hereof shall survive the termination hereof. Upon termination of
            this Agreement, the Auction Agent shall (i) resign as Auction
            Agent under the Broker-Dealer Agreements, (ii) at the Company's
            request, deliver promptly to the Company copies of all books and
            records maintained by it in connection with its duties hereunder,
            and (iii) at the request of the Company, transfer promptly to the
            Company or to any successor auction agent any funds deposited by
            the Company with the Auction Agent (whether in its capacity as
            Auction Agent or as Paying Agent) pursuant to this Agreement which
            have not been distributed previously by the Auction Agent in
            accordance with this Agreement.

                                      16
<PAGE>


            (c) If the AMPS shall no longer settle through an electronic book
            entry system, the Auction Agent (but not necessarily the Paying
            Agent) shall cease to perform its duties hereunder, and under any
            Broker-Dealer Agreement.

      7.2.  Communications.

      Except for (i) communications authorized to be made by telephone (or by
other electronic means acceptable to the parties) pursuant to this Agreement
or the Auction Procedures and (ii) communications in connection with Auctions
(other than those expressly required to be in writing), all notices, requests
and other communications to any party hereunder shall be in writing (including
telecopy or similar writing) and shall be given to such party at its address
or telecopier number set forth below:

      If to the Company,          MUNIYIELD MICHIGAN INSURED FUND, INC.
      addressed to:               800 Scudders Mill Road
                                  Plainsboro, New Jersey 08536

                                  Attention:  Treasurer
                                  Telephone No.: (609) 282-2800
                                  Telecopier No.: (609) 282-3472

      If to the Auction           The Bank of New York
      Agent, addressed to:        Corporate Trust-Dealing and Trading Group
                                  101 Barclay Street, 7W
                                  New York, New York 10286

                                  Attention: Auction Desk
                                  Telephone No.: (212) 815-3450
                                  Telecopier No.: (212) 815-3440

; or such other address or telecopier number as such party hereafter may
specify for such purpose by notice to the other party. Each such notice,
request or communication shall be effective when delivered at the address
specified herein. Communications shall be given on behalf of the Company by a
Company Officer and on behalf of the Auction Agent by an Authorized Officer.

      7.3.  Entire Agreement.

      This Agreement contains the entire agreement between the parties
relating to the subject matter hereof, and there are no other representations,
endorsements, promises, agreements or understandings, oral, written or
inferred, between the parties relating to the subject matter hereof, except
for agreements relating to the compensation of the Auction Agent.

      7.4.  Benefits.

      Nothing herein, express or implied, shall give to any Person, other than
the Company, the Auction Agent and their respective successors and assigns,
any benefit of any legal or equitable right, remedy or claim hereunder.

                                      17
<PAGE>


      7.5.  Amendment; Waiver.

      (a) This Agreement shall not be deemed or construed to be modified,
      amended, rescinded, canceled or waived, in whole or in part, except by a
      written instrument signed by a duly authorized representative of the
      party to be charged. The Company shall notify the Auction Agent of any
      change in the Articles Supplementary prior to the effective date of any
      such change. If any such change in the Articles Supplementary materially
      increases the Auction Agent's obligations hereunder, the Company shall
      obtain the written consent to the Auction Agent prior to the effective
      date of such change.

      (b) Failure of either party hereto to exercise any right or remedy
      hereunder in the event of a breach hereof by the other party shall not
      constitute a waiver of any such right or remedy with respect to any
      subsequent breach.

      7.6.  Successors and Assigns.

      This Agreement shall be binding upon, inure to the benefit of, and be
enforceable by, the respective successors and permitted assigns of each of the
Company and the Auction Agent. This Agreement may not be assigned by either
party hereto absent the prior written consent of the other party, which
consent shall not be withheld unreasonably.

      7.7.  Severability.

      If any clause, provision or section hereof shall be ruled invalid or
unenforceable by any court of competent jurisdiction, the invalidity or
unenforceability of such clause, provision or section shall not affect any of
the remaining clauses, provisions or sections hereof.

      7.8.  Execution in Counterparts.

      This Agreement may be executed in several counterparts, each of which
shall be an original and all of which shall constitute but one and the same
instrument.

      7.9.  Governing Law.

      This Agreement shall be governed by and construed in accordance with the
laws of the State of New York applicable to agreements made and to be
performed in said State.

                                      18
<PAGE>


      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their proper and duly authorized officers as of
the date first above written.

                              MUNIYIELD MICHIGAN INSURED FUND, INC.



                              By:
                                  --------------------------------
                                    Name:
                                    Title:



                             THE BANK OF NEW YORK



                              By:
                                  ---------------------------------

                                    Name:
                                    Title:




</TEXT>
</DOCUMENT>
