SUPPLEMENT TO THE PROSPECTUSES DATED JANUARY 1, 1997
Franklin California Intermediate-Term Tax-Free Income Fund
Dated November 1, 1996
Franklin New York Intermediate-Term Tax-Free Income Fund
Dated May 1, 1996 as amended September 1, 1996
as previously supplemented October 1, 1996
Franklin Federal Intermediate-Term Tax-Free Income Fund
Dated July 1, 1996
Franklin California High Yield Municipal Fund
Franklin Municipal Securities Trust
Franklin Arkansas Municipal Bond Fund
Franklin Hawaii Municipal Bond Fund
Franklin Tennessee Municipal Bond Fund
Franklin Washington Municipal Bond Fund
Dated October 1, 1996
I. The discussion under "How Do I Buy Shares? - Cumulative Quantity Discounts"
is amended by replacing it with the following text:
To determine if you may pay a reduced sales charge, the amount of your current
purchase is added to the cost or current value, whichever is higher, of your
shares in other Franklin Templeton Funds, as well as those of your spouse,
children under the age of 21 and grandchildren under the age of 21. If you are
the sole owner of a company, you may also add any company accounts, including
retirement plan accounts.
II. The discussion under "How Do I Buy Shares? - Sales Charge Waivers" is
amended by adding the following new item as the last item in the list of waiver
categories:
o Investors exchanging Advisor Class shares from any of the Franklin Templeton
Funds, or, beginning on or about May 1, 1997, Class Z shares of Mutual Series
III. The discussion under "May I Exchange Shares for Shares of Another Fund? -
Exchange Restrictions" is amended by replacing the first restriction with the
following text:
You may only exchange shares within the same class.*
*Because the Fund does not offer Advisor Class shares, Advisor Class shares of
any Franklin Templeton Fund may be exchanged for shares of the Fund at Net
Asset Value. Beginning on or about May 1, 1997, Class Z shares of Mutual Series
may also be exchanged into shares of the Fund.
January 1, 1997
