RULE 497(e)
FIRST AMERICAN FUNDS, INC.
TREASURY OBLIGATIONS FUND
GOVERNMENT OBLIGATIONS FUND
PRIME OBLIGATIONS FUND
TAX FREE OBLIGATIONS FUND
CLASS A AND CLASS B SHARES
SUPPLEMENT DATED MAY 1, 1998
TO
PROSPECTUS DATED APRIL 21, 1998
Throughout the Prospectus, all references to the "Class C Shares" of
the Funds shall be deleted and redesignated as "Class Y Shares" of the Funds.
Throughout the Prospectus, all references to "First Trust National
Association" shall be deleted and replaced with "U.S. Bank National
Association."
Throughout the Prospectus, all references to the address of DST
Systems, Inc., shall be deleted and replaced with:
330 West Ninth Street, Kansas City, Missouri 64105.
The second paragraph under the heading "Management of the Funds --
Transfer Agent" shall be deleted and replaced as follows:
Effective October 1, 1998, FAF has appointed U.S. Bank National
Association as servicing agent to perform certain transfer agent and
dividend disbursing agent services with respect to Class A Shares of
the Funds and Class B Shares of Prime Obligations Fund held through
accounts at U.S. Bank and its affiliates. The Funds pay U.S. Bank an
annual fee of $9 per account for such services.
In the fourth paragraph under the heading "Distributor," the last
sentence is deleted and replaced to read as follows:
U.S. Bancorp Investments, Inc. ("USBI") and Piper Jaffray Inc.,
broker-dealers affiliated with the Adviser, are Participating
Institutions.
In the sixth paragraph under the heading "Investing in the Funds --
Exchange Privilege," the following is added at the end of such paragraph:
The exchange privilege should not be used to take advantage of
short-term swings in the securities markets. The Funds reserve the
right to limit or terminate exchange privileges as to any shareholder
who makes exchanges more than four times a year (other than through the
Systematic Exchange Program or similar periodic investment programs).
The Funds may modify or revoke the exchange privilege for all
shareholders upon 60 days' prior written notice or without notice in
times of drastic economic or market change.
In the first paragraph under the heading "Determining the Price of
Shares," the first sentence is deleted and replaced to read as follows:
The net asset value per share is determined as of the close of normal
trading on the New York Stock Exchange (3:00 p.m. Central time) Monday
through Friday on each day the New York Stock Exchange and federally
chartered banks are open for business, provided that the net asset
value need not be determined on days when no Fund shares are tendered
for redemption and no order for that Fund's shares is received and on
days on which changes in the value of portfolio securities will not
materially affect the current net asset value of the Fund's shares.
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RULE 497(e)
FIRST AMERICAN FUNDS, INC.
TREASURY OBLIGATIONS FUND
GOVERNMENT OBLIGATIONS FUND
PRIME OBLIGATIONS FUND
TAX FREE OBLIGATIONS FUND
CLASS Y SHARES
SUPPLEMENT DATED MAY 1, 1998
TO
PROSPECTUS DATED JANUARY 31, 1998
Throughout the Prospectus, all references to the "Class C Shares" of
the Funds shall be deleted and redesignated as "Class Y Shares" of the Funds.
Throughout the Prospectus, all references to "First Trust National
Association" shall be deleted and replaced with "U.S. Bank National
Association."
In the paragraph under the heading "Summary -- Eligible Investors;
Offering Prices," the following sentence is inserted after the first sentence:
Class Y Shares of the Funds will also be offered to certain investors
who maintain single accounts with Piper Jaffray Inc. The required
minimum initial investment in each Fund for such Piper Jaffray Inc.
investors is $2 million, provided that such minimum initial investment
requirement will be waived for investors who maintain single accounts
with Piper Jaffray Inc. that have a market value (excluding cash or
other short-term investments) at the time of the initial investment in
the applicable Fund, of at least $5 million.
Throughout the Prospectus, all references to the address of DST
Systems, Inc., shall be deleted and replaced with:
330 West Ninth Street, Kansas City, Missouri 64105.
In the second paragraph under the heading "Distributor," the fourth
sentence is deleted and replaced to read as follows:
U.S. Bancorp Investments, Inc. ("USBI") and Piper Jaffray Inc.,
broker-dealers affiliated with the Adviser, are Participating
Institutions.
In the second paragraph under the heading "Purchases and Redemptions of
Shares -- Share Purchases and Redemptions," the third sentence is deleted and
replaced to read as follows:
The net asset value per share is calculated as of the close of normal
trading on the New York Stock Exchange (3:00 p.m. Central time), each
Business Day based on the amortized cost method.
In the paragraph under the heading "Purchases and Redemptions of Shares
- -- Determining Net Asset Value," the first sentence is deleted and replaced to
read as follows:
The net asset value is determined as of the close of normal trading on
the New York Stock Exchange (3:00 p.m. Central time) Monday through
Friday, except on (i) days on which there are not sufficient changes in
the value of a Fund's portfolio securities that its net asset value
might be materially affected; (ii) days during which no shares are
tendered for redemption and no orders to purchase shares are received
and (iii) days on which the New York Stock Exchange or
federally-chartered banks are closed including, but not limited to, the
following federal holidays: New Year's Day, Martin Luther King, Jr.
Day, President's Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day.
