CAT STKP2
SUPPLEMENT DATED NOVEMBER 17, 1997
TO THE PROSPECTUS OF
FRANKLIN CALIFORNIA TAX-FREE TRUST
DATED NOVEMBER 1, 1997
The prospectus is amended as follows:
I. The first two paragraphs and the first waiver category in the section
"Sales Charge Waivers," found under "How Do I Buy Shares? - INSURED AND
INTERMEDIATE-TERM FUNDS - Sales Charge Reductions and Waivers," are replaced
with the following:
Sales Charge Waivers. If one of the following sales charge waivers applies
to you or your purchase of Fund shares, you may buy shares of the Fund
without a front-end sales charge or a Contingent Deferred Sales Charge. All
of the sales charge waivers listed below apply to purchases of Class I shares
only, except for items 1 and 3 which also apply to Class II purchases.
Certain distributions, payments or redemption proceeds that you receive may
be used to buy shares of the Fund without a sales charge if you reinvest them
within 365 days of their payment or redemption date. They include:
1. Dividend and capital gain distributions from any Franklin Templeton
Fund or a real estate investment trust (REIT) sponsored or advised by
Franklin Properties, Inc. The distributions generally must be reinvested in
the same class of shares. Certain exceptions apply, however, to Class II
shareholders who chose to reinvest their distributions in Class I shares of
the Fund before November 17, 1997, and to Advisor Class or Class Z
shareholders of a Franklin Templeton Fund who may reinvest their
distributions in Class I shares of the Fund.
II. Under "What Distributions Might I Receive from the Fund? - Insured and
Intermediate-Term Fund - Distribution Options," the references in the first
two paragraphs to the ability of Class II shareholders to reinvest or direct
their distributions to Class I shares of the Fund or another Franklin
Templeton Fund are deleted and the following paragraph is added to the
section:
Distributions may be reinvested only in the same class of shares, except as
follows: (i) Class II shareholders who chose to reinvest their distributions
in Class I shares of the Fund or another Franklin Templeton Fund before
November 17, 1997, may continue to do so; and (ii) Class II shareholders may
reinvest their distributions in shares of any Franklin Templeton money fund.
