o NYT*SA1
CAT *SA1
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SHARE CLASS REDESIGNATION
Effective January 1, 1999
Class A - Formerly Class I
Class C - Formerly Class II
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SUPPLEMENT DATED APRIL 1, 1999
TO THE STATEMENTS OF ADDITIONAL INFORMATION OF
FRANKLIN NEW YORK TAX-FREE TRUST
DATED MAY 1, 1998
FRANKLIN CALIFORNIA TAX-FREE TRUST
DATED NOVEMBER 1, 1998
The Statement of Additional Information is amended as follows:
I. As of January 1, 1999, Class I shares are designated Class A and Class II
shares are designated Class C. All references in the Statement of
Additional Information to Class I shares are replaced with Class A, and all
references to Class II shares are replaced with Class C.
II. The following is added to the section "Additional Information on Selling
Shares," found under "How Do I Buy, Sell and Exchange Shares?":
For the Insured and Intermediate Funds, the contingent deferred sales
charge will generally be waived for redemptions of Class A shares by
investors who purchased $1 million or more without an initial sales charge
if the Securities Dealer of record waived its commission in connection with
the purchase.
III. Under "Miscellaneous Information," the following is added:
The Information Services & Technology division of Resources established a
Year 2000 Project Team in 1996. This team has already begun making
necessary software changes to help the computer systems that service the
fund and its shareholders to be Year 2000 compliant. After completing these
modifications, comprehensive tests are conducted in one of Resources' U.S.
test labs to verify their effectiveness. Resources continues to seek
reasonable assurances from all major hardware, software or data-services
suppliers that they will be Year 2000 compliant on a timely basis.
Resources is also beginning to develop a contingency plan, including
identification of those mission critical systems for which it is practical
to develop a contingency plan. However, in an operation as complex and
geographically distributed as Resources' business, the alternatives to use
of normal systems, especially mission critical systems, or supplies of
electricity or long distance voice and data lines are limited.
Please keep this supplement for future reference.
