GOF STKP2
SUPPLEMENT DATED NOVEMBER 17, 1997
TO THE PROSPECTUSES OF
Franklin Tax-Free Trust
(TF2 - Alabama, Florida, Georgia, Kentucky, Louisiana, Maryland, Missouri,
North Carolina, Texas, and Virginia Tax-Free Income Funds)
(TF3 - Arizona, Colorado, Connecticut, High Yield, Indiana, Michigan, New
Jersey, Oregon, Pennsylvania, and Puerto Rico Tax-Free Income Funds)
dated July 1, 1997
Franklin California Tax-Free Income Fund, Inc.
dated August 1, 1997
Franklin Federal Tax-Free Income Fund
dated September 1, 1997
Franklin Municipal Securities Trust
dated October 1, 1997
The prospectus is amended as follows:
I. The first two paragraphs and the first waiver category in the section
"Sales Charge Waivers," found under "How Do I Buy Shares? - Sales Charge
Reductions and Waivers," are replaced with the following:
Sales Charge Waivers. If one of the following sales charge waivers applies
to you or your purchase of Fund shares, you may buy shares of the Fund
without a front-end sales charge or a Contingent Deferred Sales Charge. All
of the sales charge waivers listed below apply to purchases of Class I
shares only, except for items 1 and 3 which also apply to Class II
purchases.
Certain distributions, payments or redemption proceeds that you receive may
be used to buy shares of the Fund without a sales charge if you reinvest
them within 365 days of their payment or redemption date. They include:
1. Dividend and capital gain distributions from any Franklin Templeton
Fund or a real estate investment trust (REIT) sponsored or advised by
Franklin Properties, Inc. The distributions generally must be
reinvested in the same class of shares. Certain exceptions apply,
however, to Class II shareholders who chose to reinvest their
distributions in Class I shares of the Fund before November 17, 1997,
and to Advisor Class or Class Z shareholders of a Franklin Templeton
Fund who may reinvest their distributions in Class I shares of the
Fund.
II. Under "What Distributions Might I Receive from the Fund? - Distribution
Options," the references in the first two paragraphs to the ability of Class II
shareholders to reinvest or direct their distributions to Class I shares of the
Fund or another Franklin Templeton Fund are deleted and the following paragraph
is added to the section:
Distributions may be reinvested only in the same class of shares, except as
follows: (i) Class II shareholders who chose to reinvest their
distributions in Class I shares of the Fund or another Franklin Templeton
Fund before November 17, 1997, may continue to do so; and (ii) Class II
shareholders may reinvest their distributions in shares of any Franklin
Templeton money fund.
