OPPENHEIMER NEW YORK TAX-EXEMPT FUND
Supplement dated September 22, 1995 to the
Prospectus dated August 29, 1995
The following change is made to the Prospectus:
1. The section entitled "Ratings of Municipal Securities" on page 13
is changed to read as follows:
- Ratings of Municipal Securities. At least 75% of the total
assets of the Fund must be invested in Municipal Securities rated
within the four highest rating categories of Moody's Investors Service,
Inc. ("Moody's"), Standard & Poor's Corporation ("S&P"), Fitch
Investors Service, Inc. ("Fitch"), or, if unrated, judged by the
Manager to be of comparable quality to Municipal Securities rated
within such grades. See Appendix B of the Statement of Additional
Information for a description of these rating categories. Municipal
Securities rated either "Baa" or "MIG2" by Moody's, or "BBB" or "SP-2"
by S&P, or "BBB" or "F-3" by Fitch, although investment-grade, may be
subject to greater market fluctuations and risks of loss of income and
principal than higher-rated Municipal Securities and may be considered
to have speculative characteristics.
A reduction in the rating of a security after its purchase by the
Fund will not require the Fund to dispose of such security. Securities
that have fallen below investment grade have a greater risk that the
ability of the issuers of such securities to meet their debt
obligations will be impaired. It is anticipated that the Municipal
Securities purchased for the Fund's portfolio will generally be those
having relatively longer maturities (approximately 7 to 30 years), but
the Fund may invest in Municipal Securities having a broad range of
maturities. The foregoing ratings restrictions do not apply to banks
in which the Fund's cash is kept.
The Fund is permitted to invest up to 25% of the Fund's total
assets in Municipal Securities rated below "investment grade," that is,
below the four highest rating categories of Moody's, S&P or Fitch.
Lower-grade Municipal Securities (sometimes called "municipal junk
bonds") may be subject to greater market fluctuations and are subject
to greater risks of loss of income and principal than higher-rated
Municipal Securities, and may be considered to have some speculative
characteristics. Securities that are or that have fallen below
investment grade entail a greater risk that the ability of the issuers
of such securities to meet their debt obligations will be impaired.
There may be less of a market for lower-grade Municipal Securities and
therefore they may be harder to sell at an acceptable price. These
risks mean that the Fund may not achieve the expected income from
lower-grade Municipal Securities, and that the Fund's income and net
asset value per share may be affected by declines in value of these
securities. However, the Fund's limitations on investment in non-
investment grade Municipal Securities may reduce some of these risks.
September 22, 1995 PS0360.004
