USAA TAX EXEMPT FUND, INC.
Long-Term Fund, Intermediate-Term Fund,
Short-Term Fund, Tax Exempt Money Market Fund,
California Bond and California Money Market Funds,
New York Bond and New York Money Market Funds,
Virginia Bond and Virginia Money Market Funds
SUPPLEMENT dated June 17, 1996
to the STATEMENTS of ADDITIONAL INFORMATION
dated August 1, 1995 as Supplemented December 1, 1995
The USAA Funds have adopted the following administrative policy:
Small Balance Account Fee. Beginning in September 1998, and occurring each
September thereafter, USAA Shareholder Account Services (SAS) will assess a
small balance account fee of $12 to shareholder accounts whose balance, at the
time of assessment, is below $2,000. The fee will be used to reduce total
transfer agency fees paid by each Fund to SAS. The following accounts will be
exempt from the fee:
Any account on a systematic investment plan
Any account registered as UGMA or UTMA
All (non IRA) money market fund accounts
Any account whose registered owner has an aggregate balance of
$50,000 or more invested in USAA mutual funds
All IRA accounts (for the first year account is open)
28597-0696
