August 24, 1994
DREYFUS NEW YORK TAX EXEMPT FUNDS
SUPPLEMENT TO COMBINED PROSPECTUS DATED JULY 25, 1994
THE FOLLOWING ANTICIPATED CHANGES HAVE OCCURRED:
I. CONSUMMATION OF THE MERGER
THE FOLLOWING INFORMATION SUPPLEMENTS AND SUPERSEDES ANY CONTRARY
INFORMATION CONTAINED IN THE PROSPECTUS.
On this date, the previously announced merger between The Dreyfus
Corporation ("Dreyfus") and a subsidiary of Mellon Bank Corporation
("Mellon") was completed, and as a result, Dreyfus now is a wholly-owned
subsidiary of Mellon Bank, N.A. instead of a publicly-owned corporation.
Mellon is a publicly owned multibank holding company incorporated
under Pennsylvania law in 1971 and registered under the Federal Bank Holding
Company Act of 1956, as amended. Mellon provides a comprehensive range of
financial products and services in domestic and selected international
markets. Mellon is among the twenty-five largest bank holding companies in
the United States based on total assets. Mellon's principal wholly-owned
subsidiaries are Mellon Bank, N.A., Mellon Bank (DE) National Association,
Mellon Bank (MD), The Boston Company, Inc., AFCO Credit Corporation and a
number of companies known as Mellon Financial Services Corporations. Through
its subsidiaries, Mellon managed more than $130 billion in assets as of July
31, 1994, including approximately $6 billion in mutual fund assets. As of
June 30, 1994, various subsidiaries of Mellon provided non-investment
services, such as custodial or administration services, for more than $747
billion in assets, including approximately $97 billion in mutual fund assets.
II. NEW DISTRIBUTOR
THE FOLLOWING INFORMATION SUPERSEDES AND REPLACES ANY CONTRARY
INFORMATION CONTAINED IN THE PROSPECTUS AND SPECIFICALLY IN THE SECTION
ENTITLED "HOW TO BUY SHARES."
Each Fund's distributor is Premier Mutual Fund Services, Inc. (the
"Distributor"), located at One Exchange Place, Boston, Massachusetts 02109.
The Distributor is a wholly-owned subsidiary of Institutional Administration
Services, Inc., a provider of mutual fund administration services, the parent
company of which is Boston Institutional Group, Inc.
Accordingly, references in the Prospectus to Dreyfus Service
Corporation as each Fund's distributor should be substituted with Premier
Mutual Fund Services, Inc.
III.NEW RULE 12B-1 PLAN ARRANGEMENTS IMPLEMENTED
THE FOLLOWING INFORMATION SUPERSEDES AND REPLACES THE INFORMATION IN
THE FIRST PARAGRAPH CONTAINED IN THE SECTION IN THE PROSPECTUS ENTITLED
"SERVICE PLAN AND SHAREHOLDER SERVICES PLANS -- INTERMEDIATE BOND FUND."
Under the Service Plan of the INTERMEDIATE BOND FUND, adopted
pursuant to Rule 12b-1 under the Investment Company Act of 1940, the
INTERMEDIATE BOND FUND (a) reimburses the Distributor for payments to certain
Service Agents for distributing the INTERMEDIATE BOND FUND'S shares and
servicing shareholder accounts ("Servicing") and (b) pays The Dreyfus
Corporation, Dreyfus Service Corporation and any affiliate of either of them
(collectively, "Dreyfus") for advertising and marketing relating to the Fund
and for Servicing, at an aggregate annual rate of .25 of 1% of the value of
the INTERMEDIATE BOND FUND'S average daily net assets.
(CONTINUED ON REVERSE SIDE)
Each of the Distributor and Dreyfus may pay one or more Service Agents a fee
in respect of the INTERMEDIATE BOND FUND'S shares owned by shareholders with
whom the Service Agent has a Servicing relationship or for whom the Service
Agent is the dealer or holder of record. Each of the Distributor and Dreyfus
determine the amounts, if any, to be paid to Service Agents under the Service
Plan and the basis on which such payments are made. The fees payable under
the Service Plan are payable without regard to actual expenses incurred.
IV. RESULTS OF FUND SHAREHOLDER VOTE
THE FOLLOWING INFORMATION SUPPLEMENTS AND SUPERSEDES ANY CONTRARY
INFORMATION CONTAINED IN THE PROSPECTUS.
On August 2, 1994, each Fund's shareholders voted respectively to
approve a new investment advisory agreement with Dreyfus, and shareholders of
the INTERMEDIATE BOND FUND voted to approve a new Service Plan, all of which
became effective upon consummation of the merger between Dreyfus and a
subsidiary of Mellon. Shareholders of each LONGER TERM FUND voted to approve,
respectively, changes to certain of each LONGER TERM FUND'S fundamental
policies and investment restrictions to permit each Fund to (i) borrow money
to the extent permitted under the Investment Company Act of 1940, as amended,
(ii) pledge its assets to the extent necessary to secure borrowings and make
such policy non-fundamental. Shareholders of the MONEY MARKET FUND voted to
approve certain changes to the Fund's fundamental policy and investment
restrictions to (i) increase to 15% of the value of the Fund's net assets the
amount the Fund may borrow from banks for temporary or emergency (not
leveraging) purposes, (ii) permit the Fund to pledge its assets to the extent
necessary to secure borrowings and make such policy non-fundamental, and
(iii) permit the Fund to invest up to 10% of the value of its net assets in
illiquid securities and make such policy non-fundamental.
V. REVISED MANAGEMENT POLICIES
BORROWING MONEY -- As a fundamental policy, each LONGER TERM FUND is
permitted to borrow to the extent permitted under the Investment Company Act
of 1940. However, each LONGER TERM FUND currently intends to borrow money
only for temporary or emergency (not leveraging) purposes, in an amount up to
15% of the value of the Fund's total assets (including the amount borrowed)
valued at the lesser of cost or market, less liabilities (not including the
amount borrowed) at the time the borrowing is made. As a fundamental policy,
the MONEY MARKET FUND is permitted to borrow money only from banks for
temporary or emergency (not leveraging) purposes, in an amount up to 15% of
the value of the Fund's respective total assets (including the amount
borrowed) valued at the lesser of cost or market, less liability (not
including the amount borrowed) at the time the borrowing is made. While
borrowings exceed 5% of each Fund's total assets, the Fund will not make any
additional investments.
NYTEF/stkr082494
