AMERICAN CENTURY CALIFORNIA TAX-FREE AND MUNICIPAL FUNDS
STATEMENT OF ADDITIONAL INFORMATION SUPPLEMENT
Supplement dated December 28, 1999 * Statement of Additional Information dated
January 1, 1999 * Revised March 17, 1999
The following is inserted immediately after the last paragraph of Fundamental
Investment Policies on page 16.
For purposes of the investment restrictions relating to lending and borrowing,
the funds have received an exemptive order from the SEC regarding interfund
lending. Under the terms of the exemptive order, the funds may borrow money from
or lend money to other funds, advised by ACIM, that permit such transactions.
All such transactions will be subject to the limits set above in the previous
chart for borrowing and lending. The funds will borrow money through the program
only when the costs are equal to or lower than the cost of short-term bank
loans. Interfund loans and borrowings normally extend only overnight, but can
have a maximum duration of seven days. The funds will lend through the program
only when the returns are higher than those available from other short-term
instruments (such as repurchase agreements). The funds may have to borrow from a
bank at a higher interest rate if an interfund loan is called or not renewed.
Any delay in repayment to a lending fund could result in a lost investment
opportunity or additional borrowing costs.
SH-SPL-19155 9912
