o 114 P-1
SUPPLEMENT DATED JUNE 1, 2000
TO THE PROSPECTUS OF
FRANKLIN TAX-EXEMPT MONEY FUND
DATED DECEMBER 1, 1999
The prospectus is amended as follows:
I. The section "Minimum investments" on page 11 is replaced with the following:
MINIMUM INVESTMENTS
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INITIAL ADDITIONAL
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Regular accounts $1,000 $50
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Automatic investment plans $50 $50
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UGMA/UTMA accounts $100 $50
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Broker-dealer sponsored wrap account programs $250 $50
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Full-time employees, officers, trustees and
directors of
Franklin Templeton entities, and their
immediate family members $100 $50
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PLEASE NOTE THAT YOU MAY ONLY BUY SHARES OF A FUND ELIGIBLE
FOR SALE IN YOUR STATE OR JURISDICTION.
II. The section "Account Application" on page 12 is replaced with the following:
ACCOUNT APPLICATION If you are opening a new account, please complete and sign
the enclosed account application. To save time, you can sign up now for services
you may want on your account by completing the appropriate sections of the
application (see "Investor Services" on page 13). For example, if you would like
to link one of your bank accounts to your fund account so that you may use
electronic fund transfers to and from your bank account to buy and sell shares,
please complete the bank information section of the application. We will keep
your bank information on file for future purchases and redemptions.
III. Effective July 3, 2000, the following is added to the section "Buying
shares" on page 12:
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[Insert graphic of phone] If you have another Before requesting a
BY PHONE Franklin Templeton telephone purchase,
account with your bank please make sure we have
(Up to $100,000 per day) account information on your bank account
1-800/632-2301 file, you may open a new information on file. If
account by phone. The we do not have this
accounts must be information, you will
identically registered. need to send written
instructions with your
To make a same day bank's name and address,
investment, please call a voided check or
us by 3:00 p.m. Pacific savings account deposit
time. slip, and a signature
guarantee if the
ownership of the bank
and fund accounts is
different.
To make a same day
investment, please call
us by 3:00 p.m. Pacific
time.
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IV. The section "Automatic Investment Plan" on page 13 is replaced with the
following:
AUTOMATIC INVESTMENT PLAN This plan offers a convenient way for you to invest in
the fund by automatically transferring money from your checking or savings
account each month to buy shares. To sign up, complete the appropriate section
of your account application and mail it to Investor Services. If you are opening
a new account, please include the minimum initial investment of $50 with your
application.
V. The section "Telephone Privileges" on page 14 is replaced with the following:
TELEPHONE PRIVILEGES You will automatically receive telephone privileges when
you open your account, allowing you and your investment representative to buy,
sell or exchange your shares and make certain other changes to your account by
phone.
For accounts with more than one registered owner, telephone privileges also
allow the fund to accept written instructions signed by only one owner for
transactions and account changes that could otherwise be made by phone. For all
other transactions and changes, all registered owners must sign the
instructions. In addition, our telephone exchange privilege allows you to
exchange shares by phone from a fund account requiring two or more signatures
into an identically registered money fund account requiring only one signature
for all transactions. This type of telephone exchange is available as long as
you have telephone exchange privileges on your account.
As long as we take certain measures to verify telephone requests, we will not be
responsible for any losses that may occur from unauthorized requests. Of course,
you can decline telephone purchase, exchange or redemption privileges on your
account application.
VI. The section "Statements and reports" on page 19 is replaced with the
following:
STATEMENTS AND REPORTS You will receive monthly account statements that show all
your account transactions during the month. You also will receive written
notification after each transaction affecting your account (except for
distributions, transactions made through automatic investment or withdrawal
programs, and shares sold by check, which will be reported on your monthly
statement). You also will receive the fund's financial reports every six months.
To reduce fund expenses, we try to identify related shareholders in a household
and send only one copy of the financial reports. If you need additional copies,
please call 1-800/DIAL BEN.
If there is a dealer or other investment representative of record on your
account, he or she also will receive copies of all notifications and statements
and other information about your account directly from the fund.
Please keep this supplement for future reference.
o 114 SA-1
SUPPLEMENT DATED JUNE 1, 2000
TO THE STATEMENT OF ADDITIONAL INFORMATION OF
FRANKLIN TAX-EXEMPT MONEY FUND
DATED DECEMBER 1, 1999
The Statement of Additional Information (SAI) is amended as follows:
I. The section "Systematic withdrawal plan" on page 12 is replaced with the
following:
SYSTEMATIC WITHDRAWAL PLAN Our systematic withdrawal plan allows you to sell
your shares and receive regular payments from your account on a monthly,
quarterly, semiannual or annual basis. The value of your account must be at
least $5,000 and the minimum payment amount for each withdrawal must be at
least $50. There are no service charges for establishing or maintaining a
systematic withdrawal plan.
Each month in which a payment is scheduled, we will redeem an equivalent amount
of shares in your account on the day of the month you have indicated on your
account application or, if no day is indicated, on the 20th day of the month.
If that day falls on a weekend or holiday, we will process the redemption on
the next business day. For plans set up before June 1, 2000, we will continue
to process redemptions on the 25th day of the month (or the next business day)
unless you instruct us to change the processing date. Available processing
dates currently are the 1st, 5th, 10th, 15th, 20th and 25th days of the month.
When you sell your shares under a systematic withdrawal plan, it is a taxable
transaction.
Redeeming shares through a systematic withdrawal plan may reduce or exhaust the
shares in your account if payments exceed distributions received from the fund.
This is especially likely to occur if there is a market decline. If a
withdrawal amount exceeds the value of your account, your account will be
closed and the remaining balance in your account will be sent to you. Because
the amount withdrawn under the plan may be more than your actual yield or
income, part of the payment may be a return of your investment.
To discontinue a systematic withdrawal plan, change the amount and schedule of
withdrawal payments, or suspend one payment, we must receive instructions from
you at least three business days before a scheduled payment. The fund may
discontinue a systematic withdrawal plan by notifying you in writing and will
discontinue a systematic withdrawal plan automatically if all shares in your
account are withdrawn or if the fund receives notification of the shareholder's
death or incapacity.
II. The following paragraph is added to the section "General information" on
page 13:
There are special procedures for banks and other institutions that wish to open
multiple accounts. An institution may open a single master account by filing
one application form with the fund, signed by personnel authorized to act for
the institution. Individual sub-accounts may be opened when the master account
is opened by listing them on the application, or by providing instructions to
the fund at a later date. These sub-accounts may be registered either by name
or number. The fund's investment minimums apply to each sub-account. The fund
will send confirmation and account statements for the sub-accounts to the
institution.
Please keep this supplement for future reference.
