o 115 P-3
SUPPLEMENT DATED JUNE 1, 2000
TO THE PROSPECTUS OF
FRANKLIN NEW YORK TAX-FREE INCOME FUND
DATED OCTOBER 1, 1999
The prospectus is amended as follows:
I. The management team on page 10 is replaced with the following:
The team responsible for the fund's management is:
SHEILA AMOROSO, SENIOR VICE PRESIDENT OF ADVISERS
Ms. Amoroso has been an analyst or portfolio manager of the fund since 1987.
She is the co-Director of Franklin's Municipal Bond Department. She joined
the Franklin Templeton Group in 1986.
JAMES CONN, VICE PRESIDENT OF Advisers
Mr. Conn has been an analyst or portfolio manager of the Fund since 1999. He
joined the Franklin Templeton Group in 1996. Previously, he was a portfolio
manager with California Investment Trust.
JOHN POMEROY, VICE PRESIDENT of Advisers
Mr. Pomeroy has been an analyst or portfolio manager of the Fund since 1989.
He joined the Franklin Templeton Group in 1986.
II. The section "Sales charge waivers" on page 20 is replaced with the
following:
SALES CHARGE WAIVERS Class A shares may be purchased without an initial sales
charge or CDSC by various individuals, institutions and retirement plans or by
investors who reinvest certain distributions and proceeds within 365 days.
Certain investors also may buy Class C shares without an initial sales charge.
The CDSC for each class may be waived for certain redemptions and distributions.
If you would like information about available sales charge waivers, call your
investment representative or call Shareholder Services at 1-800/632-2301. A
list of available sales charge waivers also may be found in the Statement of
Additional Information (SAI).
III. The section "Minimum investments" on page 21 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.
IV. The section "Account Application" on page 22 is replaced with the following:
ACCOUNT APPLICATION If you are opening a new account, please complete and sign
the enclosed account application. Make sure you indicate the share class you
have chosen. If you do not indicate a class, we will place your purchase in
Class A shares. 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 23). 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.
V. Effective July 3, 2000, the following is added to the section "Buying shares"
on page 22:
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[Insert graphic of phone] If you have another Before requesting a
Franklin Templeton account telephone purchase,
BY PHONE with your bank account please make sure we have
information on file, you your bank account
may open a new account by information on file. If
phone. The accounts must be we do not have this
(Up to $100,000 per day) identically registered. information, you will
1-800/632-2301 need to send written
To make a same day instructions with your
investment, please call us bank's name and address,
by 1:00 p.m. Pacific time a voided check or
or the close of the New savings account deposit
York Stock Exchange, slip, and a signature
whichever is earlier. guarantee if the
ownership of the bank
and Fund accounts is
different.
To make a same day
investment, please call
us by 1:00 p.m. Pacific
time or the close of the
New York Stock Exchange,
whichever is earlier.
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VI. The section "Automatic Investment Plan" on page 23 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.
VII. The section "Telephone Privileges" on page 23 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.
VIII. The section "Statements and reports" on page 28 is replaced with the
following:
STATEMENTS AND REPORTS You will receive quarterly account statements that show
all your account transactions during the quarter. You also will receive written
notification after each transaction affecting your account (except for
distributions and transactions made through automatic investment or withdrawal
programs, which will be reported on your quarterly 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.
IX. The section "Dealer compensation" on page 30 is replaced with the following:
DEALER COMPENSATION Qualifying dealers who sell Fund shares may receive sales
commissions and other payments. These are paid by Franklin Templeton
Distributors, Inc. (Distributors) from sales charges, distribution and service
(12b-1) fees and its other resources.
CLASS A CLASS B CLASS C
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COMMISSION (%) -- 3.00 2.00
Investment under $100,000 4.00 -- --
$100,000 but under $250,000 3.25 -- --
$250,000 but under $500,000 2.25 -- --
$500,000 but under $1 million 1.85 -- --
$1 million or more up to 0.75 1 -- --
12B-1 FEE TO DEALER 0.10 0.15 2 0.65 3
A dealer commission of up to 1% may be paid on Class C NAV purchases. A dealer
commission of up to 0.25% may be paid on Class A NAV purchases by certain trust
companies and bank trust departments, eligible governmental authorities, and
broker-dealers or others on behalf of clients participating in comprehensive
fee programs.
MARKET TIMERS. Please note that for Class A NAV purchases by market timers,
including purchases of $1 million or more, dealers are not eligible to receive
the dealer commission. Dealers, however, may be eligible to receive the 12b-1
fee from the date of purchase. If a dealer commission is paid on a Class A NAV
purchase that we later determine was made by a market timer, all commissions
paid in connection with that purchase during the last twelve months must be
returned.
1. During the first year after purchase, dealers may not be eligible to receive
the 12b-1 fee. 2. Dealers may be eligible to receive up to 0.15% from the date
of purchase. After 8 years, Class B shares convert to Class A shares and dealers
may then receive the 12b-1 fee applicable to Class A. 3. Dealers may be eligible
to receive up to 0.15% during the first year after purchase and may be eligible
to receive the full 12b-1 fee starting in the 13th month.
Please keep this supplement for future reference.
