115 STKP
SUPPLEMENT DATED NOVEMBER 17, 1997
TO THE PROSPECTUS OF
FRANKLIN NEW YORK TAX-FREE INCOME FUND
DATED OCTOBER 1, 1997
The prospectus is amended as follows:
I. The "Example" section in the expense table under "Expense Summary" is
replaced in its entirety with the following:
C. Example
Assume the annual return for each class is 5%, operating expenses are as
described above, and you sell your shares after the number of years
shown. These are the projected expenses for each $1,000 that you invest
in the Fund.
1 Year 3 Years 5 Years 10 Years
- ------------------------------------------------------------------------------
Class I $48*** $61 $75 $114
Class II $32 $47 $74 $151
For the same Class II investment, you would pay projected expenses of $22
if you did not sell your shares at the end of the first year. Your
projected expenses for the remaining periods would be the same.
THIS IS JUST AN EXAMPLE. IT DOES NOT REPRESENT PAST OR FUTURE EXPENSES OR
RETURNS. ACTUAL EXPENSES AND RETURNS MAY BE MORE OR LESS THAN THOSE SHOWN.
The Fund pays its operating expenses. The effects of these expenses are
reflected in the Net Asset Value or dividends of each class and are not
directly charged to your account.
II. 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.
III. 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.
