[Logo of USAA TAX EXEMPT FUND, INC.
USAA Eagle Long-Term Fund
Appears Here] Short-Term Fund
California Bond Fund
New York Bond Fund
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Intermediate-Term Fund
Tax Exempt Money Market Fund
California Money Market Fund
New York Money Market Fund
Virginia Money Market Fund
SUPPLEMENT DATED DECEMBER 2, 1996
TO THE STATEMENTS OF ADDITIONAL INFORMATION
DATED AUGUST 1, 1996
Effective December 1, 1996, Robert G. Davis replaced M. Staser Holcomb
as Director and Chairman of the Board of Directors. The paragraph under the
caption "Directors and Officers of the Company" relating to M. Staser Holcomb
is replaced with the following information:
Robert G. Davis 1, 2
Director and Chairman of the Board of Directors
Age: 50
President, Chief Executive Officer, Director and Vice Chairman of the Board of
Directors of USAA Capital Corporation and several of its subsidiaries and
affiliates (12/96-present); Director, Vice Chairman, Executive Vice President,
and Chief Operating Officer, USAA Financial Planning Network, Inc. (9/96
- -present); Special Assistant to Chairman, United Services Automobile
Association (USAA) (6/96-12/96); President and Chief Executive Officer, Banc
One Credit Corporation (12/95-6/96); and President and Chief Executive
Officer, Banc One Columbus, (8/91-12/95). Mr. Davis also will serve as a
Trustee and Chairman of the Board of Trustees of USAA Investment Trust and
USAA State Tax-Free Trust and as a Director and Chairman of the Boards of
Directors of USAA Investment Management Company (IMCO), USAA Mutual Fund,
Inc., USAA Shareholder Account Services, USAA Federal Savings Bank and USAA
Real Estate Company.
Effective January 1, 1997, Robert L. Mason will replace George E. Brown
as a Director on the Board of Directors. Mr. Brown will be retiring on
December 31, 1996. The paragraph under the caption "Directors and Officers of
the Company" relating to George E. Brown is replaced with the following
information:
Robert L. Mason, Ph.D. 3, 4, 5
12823 Queens Forest
San Antonio, TX 78230
Director
Age: 50
Manager, Statistical Analysis Section, Southwest Research Institute (8/75-
present). Dr. Mason currently serves as a Trustee of USAA Investment Trust
and USAA State Tax-Free Trust and as a Director of USAA Mutual Fund, Inc.
29299-1296
