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THE RESERVE FUNDS
Reserve Tax-Exempt Trust:
Interstate Tax-Exempt Fund
Supplement dated November 17, 1999
to the Statement of Additional Information dated July 31, 1999
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INVESTMENT MANAGEMENT, DISTRIBUTION AND CUSTODIAN AGREEMENTS
The sub section entitled, "Custodian, Independent Accountant and Counsel"
should be revised to delete the reference to Dechert Price & Rhoads, and as
such should read as follows:
Custodian and Independent Accountant. The Chase Manhattan Bank, 4 New York
Plaza, New York, NY 10004 is Custodian of the Fund's securities and cash
pursuant to a Custodian Agreement. The Bank of New York, 1 Wall Street, New
York, NY 10286 and Custodial Trust Company, 101 Carnegie Center, Princeton, NJ
08540 are Custodians for the Fund for limited purposes in connection with
certain repurchase agreements. The Custodian has no part in determining the
investment policies of the Fund or which securities are to be purchased or sold
by the Fund. PricewaterhouseCoopers LLP, 1177 Avenue of the Americas, New York,
NY 10036 is the Fund's independent accountant.
HOW TO BUY AND SELL SHARES
The third paragraph under the subsection entitled "Reserve Cash Performance
Account" should be updated to read as follows:
VISA cardholders may be liable for the unauthorized use of their card if the
Fund or the bank is not notified of the theft or loss within two (2) business
days. If the Fund or the bank is notified of the theft or loss within the
specified time period, the cardholder is only liable for that amount set by
governing Federal regulations, currently $50. Participants should refer to the
VISA Account Shareholder Agreement for complete information regarding
responsibilities and liabilities with respect to the VISA Check Card. If a card
is lost or stolen, the cardholder should report the loss immediately by
telephoning the issuing bank, currently BankOne at 402-331-5152 or
800-996-4324, which can be reached 24 hours a day, seven (7) days a week or the
Fund at 800-637-1700 or 212-401-5500 during normal business hours (Monday
through Friday, 9:00 AM to 5:00 PM, Eastern time).
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THE RESERVE FUNDS
Reserve Tax-Exempt Trust and Reserve New York Tax-Exempt Trust:
New York Tax-Exempt, California II Tax-Exempt, Connecticut Tax-Exempt,
Florida Tax-Exempt, Massachusetts Tax-Exempt, Michigan Tax-Exempt, New Jersey
Tax-Exempt, Ohio Tax-Exempt and Pennsylvania Tax-Exempt Funds
Supplement dated November 17, 1999
to the Statement of Additional Information dated July 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT MANAGEMENT, DISTRIBUTION AND CUSTODIAN AGREEMENTS
The sub section entitled, "Custodian, Independent Accountant and Counsel" should
be revised to delete the reference to Dechert Price & Rhoads, and as such should
read as follows:
Custodian and Independent Accountant. The Chase Manhattan Bank, 4 New York
Plaza, New York, NY 10004 is Custodian of the Fund's securities and cash
pursuant to a Custodian Agreement. The Bank of New York, 1 Wall Street, New
York, NY 10286 and Custodial Trust Company, 101 Carnegie Center, Princeton, NJ
08540 are Custodians for the Fund for limited purposes in connection with
certain repurchase agreements. The Custodian has no part in determining the
investment policies of the Fund or which securities are to be purchased or sold
by the Fund. PricewaterhouseCoopers LLP, 1177 Avenue of the Americas, New York,
NY 10036 is the Fund's independent accountant.
HOW TO BUY AND SELL SHARES
The third paragraph under the subsection entitled "Reserve Cash Performance
Account" should be updated to read as follows:
VISA cardholders may be liable for the unauthorized use of their card if the
Fund or the bank is not notified of the theft or loss within two (2) business
days. If the Fund or the bank is notified of the theft or loss within the
specified time period, the cardholder is only liable for that amount set by
governing Federal regulations, currently $50. Participants should refer to the
VISA Account Shareholder Agreement for complete information regarding
responsibilities and liabilities with respect to the VISA Check Card. If a card
is lost or stolen, the cardholder should report the loss immediately by
telephoning the issuing bank, currently BankOne at 402-331-5152 or
800-996-4324, which can be reached 24 hours a day, seven (7) days a week or the
Fund at 800-637-1700 or 212-401-5500 during normal business hours (Monday
through Friday, 9:00 AM to 5:00 PM, Eastern time).
