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THE EMPIRE BUILDER TAX FREE BOND FUND
SUPPLEMENT DATED DECEMBER 11, 1996 TO PROSPECTUS DATED JULY 1, 1996
This Supplement is provided to update, and should be read in conjunction
with, the information provided in the Prospectus.
Effective November 16, 1996 BISYS Fund Services, Inc. ("BISYS") succeeded
Furman Selz LLC as Transfer Agent to the Fund. All references to Furman Selz LLC
as Transfer Agent in the Prospectus shall now refer to BISYS. At its September
10, 1996 meeting, the Board of Trustees of the Fund also approved, as successor
Administrator to Furman Selz LLC, BISYS Fund Services Limited Partnership d/b/a
BISYS Fund Services. The Board of Trustees also approved, as successor
Accounting Agent to Furman Selz LLC, BISYS Fund Services, Inc. BISYS and its
affiliates are located at 3435 Stelzer Road, Columbus, Ohio 43219. The new
Administrator and Accounting Agent are expected to begin providing services to
the Fund during the first quarter of 1997.
PLEASE NOTE THE FOLLOWING REVISION REGARDING "FEATURES AND BENEFITS OF THE FUND"
(This section is changed to read as follows):
Account information:
You can obtain information about your account on any business day between 8
a.m. and 9 p.m. (Eastern Time) by calling toll free: 1-800-847-5886. Specially
trained representatives will answer your questions and provide you with
information about your investment.
PLEASE NOTE THE FOLLOWING REVISION REGARDING "HOW THE FUND IS MANAGED"
(The third and fourth sentences of the third paragraph of this section are
changed to read as follows):
Effective at the time that BISYS becomes the Administrator, the Fund will
pay fees to the Administrator at an annual rate of 0.2% of the first $100
million of average net assets and 0.14% of any excess over $100 million. The
Administrator also provides the Fund with certain accounting and related
services for which it receives an additional fee in the monthly amount of
$2,500.
PLEASE NOTE THE FOLLOWING REVISION REGARDING "DISTRIBUTIONS AND TAXES" (The
following is added at the end of the third paragraph of this section.)
If you elect to receive distributions in cash, and your checks are (1)
returned and marked as "undeliverable" or (2) remain uncashed for six months,
your cash election will be changed automatically and your future dividend and
capital gains distributions will be reinvested in the Fund at the per share net
asset value determined as of the date of payment of the distribution. In
addition, any undeliverable checks or checks that remain uncashed for six months
will be canceled and will be reinvested in the Fund at the per share net asset
value determined as of the date of cancellation.
PLEASE NOTE THE FOLLOWING REVISIONS REGARDING "HOW TO BUY SHARES" (The third
paragraph of this section is changed to read as follows):
Through the Distributor: Complete the enclosed application form and return it,
along with a check payable to The Empire Builder Tax Free Bond Fund, P.O. Box
182486, Columbus, OH 43218-2486.
Shares purchased by check will not be redeemed until payment of the shares
has been collected, which may take up to fifteen days after purchase.
(The fourth paragraph of this section is changed to read as follows):
Shares of the relevant class are sold at the net asset value next
determined after the Administrator receives your order. If you buy shares
through your investment dealer, the dealer must receive your order before the
close of regular trading on the New York Stock Exchange (normally 4 p.m. Eastern
Time) to receive that day's net asset value.
Third party or foreign checks will not be accepted.
PLEASE NOTE THE FOLLOWING REVISIONS REGARDING "HOW TO SELL SHARES" (The first
paragraph is changed to read as follows):
You can sell your shares to the Fund on any day the New York Stock
Exchange is open, either directly to the Fund, by check or through your
investment dealer. The Fund will repurchase only shares for which it has
received payment. Shares purchased by check are not permitted to be redeemed
until payment of the shares has been collected, which may take up to fifteen
days after purchase.
(The first sentence to the fourth paragraph is changed to read as follows):
Directly to the Fund: Send a signed letter of instruction or stock power form to
The Empire Builder Tax Free Bond Fund, P.O. Box 182486, Columbus, OH 43218-2486.
(The sixth paragraph is changed to read as follows):
By check: Shareholders wishing to sell shares by drawing checks on their
accounts must first complete the signature card (and resolution, if the
shareholder is not an individual) provided with the application contained in
this Prospectus. Upon receiving the properly completed application, card and
resolution, the Administrator will provide you with checks. These checks may be
made payable to the order of any person in the amount of $500 or more for the
Builder Class and $5,000 or more for the Premier Class. When a check is
presented for payment, a sufficient number of full and fractional shares in your
account will be redeemed to cover the amount of the check. Shares represented by
stock certificates may not be redeemed by this method.
(The first sentence to the seventh paragraph is changed to read as follows):
Shareholders utilizing checks will be subject to Huntington National Bank's
rules governing checking accounts.
(The following is added to the end of this section)
Other Redemption Information: Requests must include the following
documentation:
(a) A letter of instruction, if required, signed by all registered owners of the
shares in the exact names in which they are registered; (b) Any required
signature guarantees (see "Signature Guarantees" below); and (c) Other
supporting legal documents, if required, in the case of estates, trusts,
guardianships, custodianships, corporations, pension and profit sharing plans
and other organizations.
Signature Guarantees: To protect shareholder accounts, the Fund and its transfer
agent from fraud, signature guarantees are required to enable the Fund to verify
the identity of the person who has authorized a redemption from an account.
Signature guarantees are required for (1) redemptions where the proceeds are to
be sent to someone other than the registered shareowner(s) and the registered
address and (2) requests to transfer ownership of shares. Shareholders may
contact the Fund at 1-800-847-586 for further details.
PLEASE NOTE THE FOLLOWING REVISIONS REGARDING "HISTORY AND ORGANIZATION OF THE
FUND"
(The last paragraph is changed to read as follows):
Inquires should be directed to The Empire Builder Tax Free Bond Fund, P. O.
Box 182486, Columbus, OH 43218-2486.
622-A11-SP-01
