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TEMPLETON MONEY FUND
PROSPECTUS -- JANUARY 1, 1996
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INVESTMENT Templeton Money Fund (the "Fund") seeks current income,
OBJECTIVE stability of principal and liquidity by investing in high
AND POLICIES quality money market instruments with maturities not exceeding
397 days, consisting primarily of short-term U.S. Government
securities, bank certificates of deposit, time deposits,
bankers' acceptances, commercial paper and repurchase
agreements. The Fund is a series of Templeton Income Trust.
AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY
THE U.S. GOVERNMENT. WHILE THE FUND SEEKS TO MAINTAIN A STABLE
NET ASSET VALUE OF $1.00 PER SHARE, THERE CAN BE NO ASSURANCE
THAT THE FUND WILL BE ABLE TO DO SO.
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PURCHASE OF Please complete and return the Shareholder Application. If you
SHARES need assistance in completing this form, please call our
Shareholder Services Department. The Fund's Shares may be
purchased at a price equal to their net asset value. The
minimum initial investment is $500 ($25 minimum for subsequent
investments).
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PROSPECTUS This Prospectus sets forth concisely information about the
INFORMATION Fund that a prospective investor ought to know before
investing. Investors are advised to read and retain this
Prospectus for future reference. A Statement of Additional
Information ("SAI") dated January 1, 1996, has been filed with
the Securities and Exchange Commission and is incorporated in
its entirety by reference in and made a part of this
Prospectus. This SAI is available without charge upon request
to Franklin Templeton Distributors, Inc., P.O. Box 33030,
St. Petersburg, Florida 33733-8030 or by calling the Fund
Information Department.
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FUND INFORMATION DEPARTMENT -- 1-800/DIAL BEN
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TEMPLETON "STAR" SERVICE (24 hours, seven days a week access to current
prices, shareholder account balances/values, last transaction and duplicate
account statements) -- 1-800-654-0123
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TABLE OF CONTENTS
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Page
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EXPENSE TABLE........ 2
FINANCIAL HIGHLIGHTS. 3
GENERAL DESCRIPTION.. 3
Investment Objective
and Policies........ 3
INVESTMENT
TECHNIQUES.......... 4
U.S. Government
Securities.......... 4
Loans of Portfolio
Securities.......... 4
Bank Obligations..... 4
Commercial Paper..... 4
Repurchase
Agreements.......... 5
Eurodollar and Yankee
Obligations......... 5
HOW TO BUY SHARES OF
THE FUND............ 5
Cumulative Quantity
Discount............ 5
Dealer Compensation.. 6
Automatic Investment
Plan................ 6
Institutional
Accounts............ 6
Account Statements... 6
Templeton STAR
Service............. 6
Retirement Plans..... 7
EXCHANGE PRIVILEGE... 7
Exchanges By
Telephone........... 7
Exchanges Through
Securities Dealers.. 8
Additional
Information
Regarding Exchanges. 8
Retirement Plan
Accounts............ 8
Timing Accounts...... 8
Restrictions on
Exchanges........... 8
HOW TO SELL SHARES OF
THE FUND............ 9
Check Writing........ 10
Expedited Redemption. 10
Contingent Deferred
Sales Charge........ 11
TELEPHONE
TRANSACTIONS........ 11
Verification
Procedures.......... 11
Restricted Accounts.. 11
General.............. 12
MANAGEMENT OF THE
FUND................ 12
Investment Manager... 12
Business Manager..... 12
Transfer Agent....... 12
Custodian............ 12
Plan of Distribution. 12
Expenses............. 13
Brokerage
Commissions......... 13
GENERAL INFORMATION.. 13
Description of
Shares/Share
Certificates........ 13
Meetings of
Shareholders........ 13
Dividends and
Distributions....... 13
Federal Tax
Information......... 14
Inquiries............ 14
Performance
Information......... 14
Statements and
Reports............. 14
WITHHOLDING
INFORMATION......... 15
CORPORATE RESOLUTION. 16
THE FRANKLIN
TEMPLETON GROUP..... 17
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SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK; FURTHER, SUCH SHARES ARE NOT FEDERALLY INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER
AGENCY. SHARES OF THE FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE
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LOSS OF CAPITAL.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
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EXPENSE TABLE
The purpose of this table is to assist an investor in understanding the
various costs and expenses that a Shareholder will bear directly or indirectly
in connection with an investment in the Fund. The figures are estimates based
upon the Fund's expenses for the current fiscal year.
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ANNUAL FUND OPERATING EXPENSES (AS A PERCENTAGE OF AVERAGE NET ASSETS)
Management Fees (after fee waiver)....................................... 0.15%
12b-1 Fees............................................................... 0.15%
Other Expenses (audit, legal, business management, transfer agent and
custodian).............................................................. 0.49%
Total Fund Operating Expenses (after fee waiver)......................... 0.79%
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Investors should be aware that the above table is not intended to reflect in
precise detail the fees and expenses associated with an individual's own
investment in the Fund. Rather, the table has been provided only to assist
investors in gaining a more complete understanding of fees, charges and
expenses. The information in this table does not reflect the charge of up to
$15 per transaction if a Shareholder requests that redemption proceeds be sent
by express mail or wired to a commercial bank account. For a more detailed
discussion of these matters, investors should refer to the appropriate
sections of this Prospectus.
The Fund's investment manager, Templeton Global Bond Managers, a division of
Templeton Investment Counsel, Inc., has voluntarily agreed to temporarily
reduce its investment management fees by 0.20%. If this policy were not in
effect, the Fund's management fee would be 0.35% and the Fund's "Total Fund
Operating Expenses" would be .99%. As long as this temporary expense
limitation continues, it may lower the Fund's expenses and increase its yield.
The expense limitation may be terminated or revised at any time, at which time
the Fund's expenses may increase and its yield may be reduced, depending on
the total assets of the Fund.
EXAMPLE
As required by SEC regulations, the following example illustrates the
expenses that apply to a $1,000 investment, assuming (1) 5% annual rate of
return and (2) redemption at the end of each time period:
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ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
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without waiver................... $10 $32 $55 $121
with waiver...................... $ 8 $25 $44 $ 98
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THIS EXAMPLE IS BASED ON THE ESTIMATED ANNUAL OPERATING EXPENSES, INCLUDING
FEES SET BY CONTRACT, SHOWN ABOVE AND SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES, WHICH MAY BE MORE OR LESS THAN
THOSE SHOWN. The operating expenses are borne by the Fund and only indirectly
by Shareholders as a result of their investment in the Fund. In addition,
federal securities regulations require the example to assume an annual rate of
return of 5%, but the Fund's actual return may be more or less than 5%.
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FINANCIAL HIGHLIGHTS
The following table of selected financial information has been audited by
McGladrey & Pullen, LLP, independent certified public accountants, for the
periods indicated in their report which is incorporated by reference and which
appears in the Fund's 1995 Annual Report to Shareholders. This statement
should be read in conjunction with the other financial statements and notes
thereto included in the Fund's 1995 Annual Report to Shareholders, which
contains further information about the Fund's performance, and which is
available to Shareholders upon request and without charge.
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PERIOD FROM
YEAR ENDED AUGUST 31, OCTOBER 3,
(A) PER SHARE OPERATING PERFORMANCE ------------------------------------------------------------------- 1987** TO
(For a share outstanding throughout the AUGUST 31,
period) 1995 1994 1993 1992 1991 1990 1989 1988
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
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Total from investment operations .046 0.026 0.021 0.036 0.061 0.078 0.085 0.058
Less distributions
Dividends from net investment income (.046) (0.026) (0.021) (0.036) (0.061) (0.078) (0.085) (0.058)
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Change in net asset value for the period (0.000) (0.000) (0.000) (0.000) (0.000) (0.000) (0.000) (0.000)
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Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
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(B) TOTAL RETURN 4.73% 2.66% 2.10% 3.62% 6.23% 8.00% 8.74% 6.51%
(C) RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000) $137,245 $144,415 $81,874 $125,445 $174,265 $256,965 $136,329 $100,071
Ratio to average net assets of:
Expenses .99% 0.90% 1.14% 1.04% 0.89% 0.83% 0.80% 0.92%*
Net investment income 4.62% 2.77% 2.07% 3.65% 6.18% 7.71% 8.50% 6.38%*
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* Annualized
** Commencement of Operations
GENERAL DESCRIPTION
Templeton Money Fund (the "Fund") is a series of Templeton Income Trust (the
"Trust"). The Trust was organized as a Massachusetts business trust on June
16, 1986, and is registered under the Investment Company Act of 1940 (the
"1940 Act") as an open-end management investment company with two series of
Shares: Templeton Money Fund, a diversified fund, and Templeton Income Fund. A
prospectus for Templeton Income Fund is available upon request and without
charge from the Principal Underwriter.
INVESTMENT OBJECTIVE AND POLICIES. The investment objective of the Fund is
current income, stability of principal and liquidity, which it seeks to
achieve by investing in high-grade "money market" instruments with maturities
not exceeding 397 days, consisting primarily of short-term U.S. Government
securities, certificates of deposit, time deposits, bankers' acceptances,
commercial paper and repurchase agreements with banks or broker-dealers with
respect to these securities. As a fundamental policy, the Fund invests at
least 80% of its total assets in these securities. There can be no assurance
that the investment objective of the Fund will be attained.
The Fund intends to use its best efforts to maintain its net asset value at
$1.00 per Share. To do so, the Fund uses the amortized cost method of valuing
the Fund's securities pursuant to Rule 2a-7 under the 1940 Act, certain
requirements of which are summarized below.
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In accordance with Rule 2a-7, the Fund is required to (i) maintain a dollar-
weighted average portfolio maturity of 90 days or less; (ii) purchase only
instruments having remaining maturities of 397 days or less; and (iii) invest
only in U.S. dollar-denominated securities determined in accordance with
procedures established by the Board of Trustees to present minimal credit
risks which are rated in one of the two highest rating categories for debt
obligations by at least two nationally recognized statistical rating
organizations (or one rating organization if the instrument was rated by only
one such organization, subject to ratification of the investment by the Board
of Trustees). If a security is unrated, it must be of comparable quality as
determined in accordance with procedures established by the Board of Trustees,
including approval or ratification of the security by the Board except in the
case of U.S. Government securities.
In addition, the Fund will not invest more than 5% of its total assets in
the securities (including the securities collateralizing a repurchase
agreement) of, or subject to puts issued by, a single issuer, except that (i)
the Fund may invest in U.S. Government securities or repurchase agreements
that are fully collateralized by U.S. Government securities without any such
limitation, and (ii) the limitation with respect to puts does not apply to
unconditional puts if no more than 10% of the Fund's total assets is invested
in securities issued or guaranteed by the issuer of the unconditional put.
Investments in rated securities not rated in the highest category by at least
two rating organizations (or one rating organization if the instrument was
rated by only one such organization), and unrated securities not determined by
the Board of Trustees to be comparable to those rated in the highest category,
will be limited to 5% of the Fund's total assets, with the investment in any
one such issuer being limited to no more than the greater of 1% of the Fund's
total assets or $1,000,000. See "Purchase, Redemption and Pricing of Shares"
in the SAI for further information regarding amortized cost valuation. There
can be no assurance that the Fund will be able to maintain a $1.00 per Share
net asset value.
Commercial paper must be issued by domestic corporations or foreign
corporations affiliated with domestic corporations. The Fund also may enter
into repurchase agreements and may lend its portfolio securities. These
techniques are described below.
INVESTMENT TECHNIQUES
U.S. GOVERNMENT SECURITIES. U.S. Government securities are obligations
issued or guaranteed by the U.S. Government, its agencies or
instrumentalities. Some U.S. Government securities, such as Treasury bills and
bonds, are supported by the full faith and credit of the U.S. Treasury;
others, such as those of Federal Home Loan Banks, are supported by the right
of the issuer to borrow from the Treasury; others, such as those of the
Federal National Mortgage Association, are supported by the discretionary
authority of the U.S. Government to purchase the agency's obligations; still
others are supported only by the credit of the instrumentality.
LOANS OF PORTFOLIO SECURITIES. The Fund may lend to broker-dealers portfolio
securities with an aggregate market value of up to one-third of its total
assets. Such loans must be secured by collateral (consisting of any
combination of cash, U.S. Government securities or irrevocable letters of
credit) in an amount at least equal (on a daily marked-to-market basis) to the
current market value of the securities loaned. The Fund may terminate the
loans at any time and obtain the return of the securities loaned within one
business day. The Fund will continue to receive any interest or dividends paid
on the loaned securities and will continue to have voting rights with respect
to the securities.
BANK OBLIGATIONS. Certificates of deposit are negotiable certificates issued
against funds deposited in a commercial bank for a definite period of time and
earning a specified return. Bankers' acceptances are negotiable drafts or
bills of exchange, normally drawn by an importer or exporter to pay for
specific merchandise, which are "accepted" by a bank, meaning, in effect, that
the bank unconditionally agrees to pay the face value of the instrument on
maturity. The Fund may invest in dollar-denominated certificates of deposit
and bankers' acceptances of foreign and domestic banks having total assets in
excess of $1 billion. The Fund also may invest in certificates of deposit of
federally insured savings and loan associations having total assets in excess
of $1 billion.
COMMERCIAL PAPER. Investments in commercial paper are limited to obligations
rated Prime-1 or Prime-2 by Moody's Investors Service, Inc. ("Moody's") or A-1
or A-2 by Standard & Poor's Corporation ("S&P") or, if not rated by Moody's or
S&P, issued by
4
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companies having an outstanding debt issue currently rated Aaa or Aa by
Moody's or AAA or AA by S&P. See the Appendix in the SAI for a description of
these ratings.
REPURCHASE AGREEMENTS. When the Fund acquires a security from a bank or a
registered broker-dealer, it may simultaneously enter into a repurchase
agreement, wherein the seller agrees to repurchase the security at a specified
time and price. The repurchase price is in excess of the purchase price by an
amount which reflects an agreed-upon rate of return, which is not tied to the
coupon rate on the underlying security. Under the 1940 Act, repurchase
agreements are considered to be loans collateralized by the underlying
security and therefore will be fully collateralized. However, if the seller
should default on its obligation to repurchase the underlying security, the
Fund may experience delay or difficulty in exercising its rights to realize
upon the security and might incur a loss if the value of the security should
decline, as well as incur disposition costs in liquidating the security.
EURODOLLAR AND YANKEE OBLIGATIONS. The Fund may invest in dollar-denominated
obligations of foreign branches of domestic banks ("Eurodollar obligations")
and dollar-denominated obligations of domestic branches of foreign banks
("Yankee obligations"). These investments may involve risks that are different
in some respects from investments in obligations of domestic branches of
domestic banks. Such investment risks may include future political and
economic developments, the possible imposition of withholding taxes on
interest income payable on the Eurodollar and Yankee obligations held by the
Fund, possible seizure or nationalization and the possible establishment of
exchange controls or the adoption of other foreign government laws and
restrictions applicable to the payment of Eurodollar and Yankee obligations,
which might adversely affect the payment of principal and interest.
HOW TO BUY SHARES OF THE FUND
Shares of the Fund may be purchased at net asset value without a sales
charge through any broker which has a dealer agreement with Franklin Templeton
Distributors, Inc. ("FTD"), the Principal Underwriter of Shares of the Fund,
or directly from FTD upon receipt by FTD of a completed Shareholder
Application and check payable in U.S. currency. The minimum initial purchase
order for Fund Shares is $500. Subsequent purchases of Fund Shares must be in
amounts of $25 or more. These minimums may be waived when the Shares are being
purchased through retirement plans providing for regular periodic investments,
as described below under "Retirement Plans."
An investment will be made at the next determined net asset value per Share
after (1) FTD has received a purchase order, and (2) the Fund has received
Federal Funds from the purchase payment. The Fund may impose a $10 charge
against a Shareholder account in the event that a check or draft submitted for
the purchase of Fund Shares is returned unpaid to the Fund. Shares of the Fund
will begin to earn dividends on the next business day following the date of
purchase. Purchases made by Federal Funds wire and payments made by Federal
Reserve draft received by FTD will be invested and begin earning dividends on
the next business day after receipt by FTD. Any subscription may be rejected
by FTD. Instruments drawn on other investment companies may not be accepted.
Investors should promptly check the confirmation advice that is mailed after
each purchase (or redemption) in order to insure that it has been accurately
recorded in the investor's account.
CUMULATIVE QUANTITY DISCOUNT. The value of the Shares in the Fund will be
included in determining the sales charge discount to which an investor may be
entitled when purchasing shares in one or more of the funds in the Franklin
Group of Funds(R) and the Templeton Family of Funds, which are sold with a
sales charge. Included for these aggregation purposes are (i) the mutual funds
in the Franklin Group of Funds except Franklin Valuemark Funds and Franklin
Government Securities Trust (the "Franklin Funds"), (ii) other investment
products underwritten by FTD or its affiliates (although certain investments
may not have the same schedule of sales charges and/or may not be subject to
reduction) and (iii) the U.S.-registered mutual funds in the Templeton Family
of Funds except Templeton Capital Accumulator Fund, Inc., Templeton Variable
Annuity Fund, and Templeton Variable Products Series Fund (the "Templeton
Funds"). (Franklin Funds and Templeton Funds are collectively referred to as
the "Franklin Templeton Funds.") Sales charge reductions based upon aggregate
holdings of (i), (ii) and (iii) above ("Franklin Templeton Investments") may
be effective only after notification to FTD that the investment qualifies for
a discount.
5
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Purchases of Fund Shares will also be included toward the completion of a
Letter of Intent with respect to any of the Franklin Templeton Funds which are
sold with a sales charge.
DEALER COMPENSATION. Ongoing payments will be made to qualifying dealers at
the annual rate of 0.15% of the average daily net asset value of Shares
registered in the name of that broker-dealer as nominee or held in a
Shareholder account that designates that broker-dealer as dealer of record.
These payments are made in order to promote selling efforts and to compensate
dealers for providing certain services, including processing purchase and
redemption transactions, establishing Shareholder accounts and providing
certain information and assistance with respect to the Fund. Effective
February 1, 1995, for Shares acquired from an exchange into the Fund of shares
of another of the Franklin Templeton Funds which would have assessed a
contingent deferred sales charge upon redemption, dealers will be paid
distribution fees beginning in the thirteenth month after the date of the
original purchase of the exchanged Shares.
FTD, or one of its affiliates, from its own resources, may also provide
additional compensation to securities dealers in connection with sales of
shares of the Franklin Templeton Funds. Compensation may include financial
assistance to securities dealers in connection with conferences, sales or
training programs for their employees, seminars for the public, advertising,
sales campaigns and/or shareholder services and programs regarding one or more
of the Franklin Templeton Funds and other dealer-sponsored programs or events.
In some instances, this compensation may be made available only to certain
securities dealers whose representatives have sold or are expected to sell
significant amounts of shares of the Franklin Templeton Funds. Compensation
may include payment for travel expenses, including lodging, incurred in
connection with trips taken by invited registered representatives and members
of their families to locations within or outside of the United States for
meetings or seminars of a business nature. Securities dealers may not use
sales of the Fund's Shares to qualify for this compensation to the extent such
may be prohibited by the laws of any state or any self-regulatory agency, such
as the National Association of Securities Dealers, Inc. In addition, FTD or
its affiliates may make ongoing payments to brokerage firms, financial
institutions (including banks) and others to facilitate the administration and
servicing of Shareholder accounts. None of the aforementioned additional
compensation is paid for by the Fund or its Shareholders.
INSTITUTIONAL ACCOUNTS. Institutional investors will likely be required to
complete an institutional account application. There may be additional methods
of opening accounts and purchasing, redeeming or exchanging Shares of the Fund
available for institutional accounts. To obtain an institutional account
application or additional information regarding institutional accounts,
contact Franklin Templeton Institutional Services at 1-800-321-8563.
ACCOUNT STATEMENTS. Shareholder accounts are opened in accordance with the
Shareholder's registration instructions. Transactions in the account, such as
additional investments and dividend reinvestments, will be reflected on
regular confirmation statements from Franklin Templeton Investor Services,
Inc. (the "Transfer Agent").
TEMPLETON STAR SERVICE. From a touch-tone phone, Templeton and Franklin
shareholders may access an automated system (day or night) which offers the
following features:
By calling the Templeton STAR Service, shareholders may obtain current price
and yield information specific to a Templeton Fund, regardless of class;
obtain account information; and request duplicate confirmation or year-end
statements and money fund checks, if applicable.
By calling the Franklin TeleFACTS system, Class I shareholders may obtain
current price, yield or other performance information specific to a Class I
Franklin Fund; process an exchange into an identically registered Class I
Franklin account; obtain account information; and request duplicate
confirmation or year-end statements, money fund checks, if applicable, and
deposit slips.
6
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Share prices and account information specific to Templeton Class I or II
shares and Franklin Class II shares may also be accessed on TeleFACTS by
Franklin and Templeton Class I and Class II shareholders.
The Templeton STAR Service is accessible by calling 1-800-654-0123. The
TeleFACTS system is accessible by calling 1-800-247-1753. THE SHARE CODE FOR
THE FUND, WHICH WILL BE NEEDED TO ACCESS SYSTEM INFORMATION, IS 407. The
system's automated operator will prompt the caller with easy to follow step-
by-step instructions from the main menu. Other features may be added in the
future.
RETIREMENT PLANS. Shares of the Fund may be purchased through various
retirement plans including the following plans for which Franklin Templeton
Trust Company ("FTTC") or its affiliate acts as trustee or custodian: IRAs,
Simplified Employee Pensions, 403(b) plans, qualified plans for corporations,
self-employed individuals and partnerships, and 401(k) plans. A plan document
must be adopted in order for a retirement plan to be in existence. For further
information about any of the plans, agreements, applications and annual fees,
contact FTD. To determine which retirement plan is appropriate, an investor
should contact his or her tax adviser.
EXCHANGE PRIVILEGE
The Franklin Templeton Funds consist of a number of mutual funds with
various investment objectives and policies. The shares of most of these mutual
funds are generally offered to the public with a sales charge (which may have
more than one option, depending on whether the fund offers one or more classes
of shares). If a Shareholder's investment objective or outlook for the
securities markets changes, Fund Shares may be exchanged for Class I shares of
other Franklin Templeton Funds (as defined in "Cumulative Quantity Discount"
above) which are eligible for sale in the Shareholder's state of residence and
in conformity with such fund's stated eligibility requirements and investment
minimums. No exchanges between different classes of Shares are allowed and,
therefore, Shares of the Fund may not be exchanged for Class II shares of
other Franklin Templeton Funds. Shareholders of Class II Franklin Templeton
Funds may, however, elect to direct their dividends and capital gain
distributions to the Fund, or to another Franklin Templeton money market fund.
Shareholders may choose to redeem Shares of the Fund and purchase Class II
shares of other Franklin Templeton Funds but such purchase generally will be
subject to that fund's front end and contingent deferred sales charges for the
contingency period of 18 months.
Investors should review the prospectus of the fund they wish to exchange
from and the fund they wish to exchange into for all specific requirements or
limitations on exercising the exchange privilege including, for example,
minimum holding periods or applicable sales charges. Exchanges may be made in
any of the following ways:
EXCHANGES BY TELEPHONE. Shareholders, or their investment representative of
record, if any, may exchange Shares of the Fund by telephone by calling the
Transfer Agent at 1-800-632-2301. If the Shareholder does not wish this
privilege extended to a particular account, the Fund or the Transfer Agent
should be notified.
The Telephone Exchange Privilege allows a Shareholder to effect exchanges
from the Fund into an identically registered account in one of the other
available Franklin Templeton Funds. The Telephone Exchange Privilege is
available only for uncertificated Shares or Shares for which the certificates
have previously been deposited in the Shareholder's account. The Fund and the
Transfer Agent will employ reasonable procedures to confirm that instructions
communicated by telephone are genuine. Please refer to "Telephone
Transactions--Verification Procedures."
During periods of drastic economic or market changes, it is possible that
the Telephone Exchange Privilege may be difficult to implement and the
Templeton STAR Service may not be available. In this event, Shareholders
should follow the procedures for processing exchanges through securities
dealers.
7
<PAGE>
EXCHANGES THROUGH SECURITIES DEALERS. As is the case with all purchases and
redemptions of the Fund's Shares, the Transfer Agent will accept exchange
orders from securities dealers who execute a dealer or similar agreement with
FTD. See also "Exchanges By Telephone" above. Such a dealer-ordered exchange
will be effective only for uncertificated Shares or Shares for which
certificates have previously been deposited. A securities dealer may charge a
fee for handling an exchange.
ADDITIONAL INFORMATION REGARDING EXCHANGES. Shares of the Fund acquired
other than pursuant to the Exchange Privilege or the reinvestment of dividends
may be exchanged at the offering price of other Class I shares of the Franklin
Templeton Funds. Such offering price includes the applicable sales charge of
the fund into which the Shares are being exchanged. Exchanges will be effected
at the respective net asset values or offering prices of the funds involved as
next determined after the request is received in proper form.
There are differences among Franklin Templeton Funds. Before making an
exchange, a Shareholder should obtain and review a current prospectus of the
fund into which the Shareholder wishes to exchange.
The Exchange Privilege may be modified or discontinued by the Fund at any
time upon 60 days' written notice to Shareholders.
RETIREMENT PLAN ACCOUNTS. Franklin Templeton IRA and 403(b) retirement plan
accounts may accomplish exchanges directly. Certain restrictions may apply,
however, to other types of retirement plans. See "Restricted Accounts" under
"Telephone Transactions."
In situations where assets from retirement plan accounts are temporarily
invested in the Fund while awaiting final allocation or investment
instructions from the plan participant, and where such final allocation or
investment instructions involve Class II shares, Fund shares may be exchanged
for available Class II shares of the Franklin Templeton Funds (as such term is
defined in the Prospectus). The time period during which the assets were
invested in the Fund will not, however, count toward the contingency period
for purpose of the contingent deferred sales charge associated with Class II
shares. Assets previously subject to a commission by the Franklin Templeton
Funds will be precluded from using this limited exchange privilege.
TIMING ACCOUNTS. Accounts which are administered by allocation or market
timing services to purchase or redeem Shares based on predetermined market
indicators ("Timing Accounts") will be charged a $5.00 administrative service
fee per each such exchange. All other exchanges are without charge.
RESTRICTIONS ON EXCHANGES. In accordance with the terms of their respective
prospectuses, certain funds do not accept or may place differing limitations
than those below on exchanges by Timing Accounts.
The Fund reserves the right to temporarily or permanently terminate the
exchange privilege or reject any specific purchase order for any Timing
Account or any person whose transactions seem to follow a timing pattern who:
(i) makes an exchange request out of the Fund within two weeks of an earlier
exchange request out of the Fund, or (ii) makes more than two exchanges out of
the Fund per calendar quarter, or (iii) exchanges Shares equal in value to at
least $5 million, or more than 1% of the Fund's net assets. Accounts under
common ownership or control, including accounts administered so as to redeem
or purchase Shares based upon certain predetermined market indicators, will be
aggregated for purposes of the exchange limits.
The Fund reserves the right to refuse the purchase side of exchange requests
by any Timing Account, person, or group if, in the Investment Manager's
judgment, the Fund would be unable to invest effectively in accordance with
its investment objective and policies, or would otherwise potentially be
adversely affected. A Shareholder's purchase exchanges may be restricted or
refused if the Fund receives or anticipates simultaneous orders affecting
significant portions of the Fund's assets. In particular, a pattern of
exchanges that coincide with a "market timing" strategy may be disruptive to
the Fund and therefore may be refused.
The Fund and FTD reserve the right to refuse any order for the purchase of
Shares, as indicated in "How to Buy Shares of the Fund."
8
<PAGE>
HOW TO SELL SHARES OF THE FUND
Shares of the Fund will be redeemed, without charge, on request of the
Shareholder in "Proper Order" to the Transfer Agent. "PROPER ORDER" MEANS THAT
THE REQUEST TO REDEEM MUST MEET ALL OF THE FOLLOWING REQUIREMENTS:
1. Except as provided below under "Expedited Redemption," it must be in
writing, signed by the Shareholder(s) exactly in the manner as the Shares are
registered, and must specify either the number of Shares, or the dollar amount
of Shares, to be redeemed and sent to Franklin Templeton Investor Services,
Inc., P.O. Box 33030, St. Petersburg, Florida 33733-8030 and a completed
purchase application must have been received by FTD before any redemption
request will be honored;
2. The signature(s) of the redeeming Shareholder(s) must be guaranteed by an
"eligible guarantor," including (a) national or state banks, savings
associations, savings and loan associations, trust companies, savings banks,
industrial loan companies and credit unions; (b) national securities
exchanges, registered securities associations and clearing agencies; (c)
securities broker-dealers which are members of a national securities exchange
or a clearing agency or which have minimum net capital of $100,000; or (d)
institutions that participate in the Securities Transfer Agent Medallion
Program ("STAMP") or other recognized signature medallion program. A notarized
signature will not be sufficient for the request to be in Proper Order. If the
Shares are registered in more than one name, the signature of each of the
redeeming Shareholders must be guaranteed. A signature guarantee is not
required for redemptions of $50,000 or less, requested by and payable to all
Shareholders of record, to be sent to the address of record for that account.
However, the Fund reserves the right to require signature guarantees on all
redemptions. A signature guarantee is required in connection with any written
request for transfer of Shares. Also, a signature guarantee is required if the
Fund or the Transfer Agent believes that a signature guarantee would protect
against potential claims based on the transfer instructions, including, for
example, when (i) the current address of one or more joint owners of an
account cannot be confirmed; (ii) multiple owners have a dispute or give
inconsistent instructions to the Fund; (iii) the Fund has been notified of an
adverse claim; (iv) the instructions received by the Fund are given by an
agent, not the actual registered owner; (v) the Fund determines that joint
owners who are married to each other are separated or may be the subject of
divorce proceedings; or (vi) the authority of a representative of a
corporation, partnership, association, or other entity has not been
established to the satisfaction of the Fund;
3. Any outstanding certificates must accompany the request together with a
stock power signed by the Shareholder(s), with signature(s) guaranteed as
described in Item 2 above;
4. Liquidation requests of corporate, partnership, trust and custodianship
accounts, and accounts under court jurisdiction, require the following
documentation to be in proper form:
. Corporation--(i) Signature guaranteed letter of instruction from the
authorized officer(s) of the corporation, and (ii) a corporate
resolution in a form satisfactory to the Transfer Agent;
. Partnership--(i) Signature guaranteed letter of instruction from a
general partner and, if necessary, (ii) pertinent pages from the
partnership agreement identifying the general partners or other
documentation in a form satisfactory to the Transfer Agent;
. Trust--(i) Signature guaranteed letter of instruction from the
trustee(s), and (ii) a copy of the pertinent pages of the trust document
listing the trustee(s) or a certificate of incumbency if the trustee(s)
are not listed on the account registration;
. Custodial (other than a retirement account)--Signature guaranteed
letter of instruction from the custodian;
. Accounts under court jurisdiction--Check court documents and the
applicable state law since these accounts have varying requirements,
depending upon the state of residence; and
5. Redemption of Shares held in a retirement plan for which FTTC or its
affiliate acts as trustee or custodian must conform to the distribution
requirements of the plan and the Fund's redemption requirements above.
Distributions from such plans are subject to additional requirements under the
Internal Revenue Code of 1986, as amended (the "Code"), and certain documents
(available from
9
<PAGE>
the Transfer Agent) must be completed before the distribution may be made. For
example, distributions from retirement plans are subject to withholding
requirements under the Code, and the IRS Form W-4P (available from the
Transfer Agent) may be required to be submitted to the Transfer Agent with the
distribution request, or the distribution will be delayed. Franklin Templeton
Investor Services, Inc. and its affiliates assume no responsibility to
determine whether a distribution satisfies the conditions of applicable tax
laws and will not be responsible for any penalties assessed.
To avoid delay in redemption or transfer, Shareholders having questions
about these requirements should contact the Shareholder Services Department by
calling 1-800-632-2301.
Neither the Trust, the Fund nor the Transfer Agent will be responsible for
acting upon any instructions believed by them to be genuine. The redemption
price will be the net asset value of the Shares next computed after the
redemption request in Proper Order is received by the Transfer Agent. Payment
of the redemption price ordinarily will be made by check (or by wire at the
sole discretion of the Transfer Agent if wire transfer is requested including
name and address of the bank and the Shareholder's account number to which
payment of the redemption proceeds is to be wired) within seven days after
receipt of the redemption request in Proper Order. However, if Shares have
been purchased by check, the Fund will make redemption proceeds available when
a Shareholder's check received for the Shares purchased has been cleared for
payment by the Shareholder's bank, which, depending upon the location of the
Shareholder's bank, could take up to 15 days or more. The check will be mailed
by first-class mail to the Shareholder's registered address (or as otherwise
directed). Remittance by wire (to a commercial bank account in the same
name(s) as the Shares are registered) that has been in existence for more than
six (6) months) or express mail, if requested, are subject to a handling
charge of up to $15, which will be deducted from the redemption proceeds.
The Fund may involuntarily redeem an investor's Shares if the net asset
value of such Shares is less than $500, except that involuntary redemptions
will not result from fluctuations in the value of an investor's Shares. In
addition, the Fund may involuntarily redeem the Shares of any investor who has
failed to provide the Fund with a certified taxpayer identification number or
such other tax-related certifications as the Fund may require. A notice of
redemption, sent by first-class mail to the investor's address of record, will
fix a date not less than 30 days after the mailing date, and Shares will be
redeemed at the net asset value at the close of business on that date, unless
sufficient additional Shares are purchased to bring the aggregate account
value up to $500 or more, or unless a certified taxpayer identification number
(or such other information as the Fund has requested) has been provided, as
the case may be. A check for the redemption proceeds will be mailed to the
investor at the address of record.
CHECK WRITING. The Fund has established special check writing services for
its Shareholders whose Shares are held on deposit by the Transfer Agent. Upon
request, Shareholders may obtain a supply of checks without charge.
Shareholders may write checks payable to the order of any person in any amount
not less than $500 but not more than $500,000. THESE CHECKS CANNOT BE
CERTIFIED NOR CAN THESE CHECKS BE NEGOTIATED FOR CASH AT THE OFFICES OF FTD OR
FIRST UNION NATIONAL BANK OF FLORIDA. Checks are not returned to Shareholders
after payment, although copies of checks will be available on request to the
Transfer Agent at no charge. Shareholders who are interested in the check
writing service should complete the appropriate section of the Shareholder
Application. The check writing service is not available in any of the
Templeton Tax Deferred Retirement Plans.
When a check is presented for payment, the Fund redeems a sufficient number
of Shares to cover the amount of the check. Checks written on accounts with
insufficient Shares will be returned to the payee marked "non-sufficient
funds." Checks written in amounts less than $500 also will be returned.
Because the aggregate amount owned by a Shareholder may change each day,
Shareholders should not attempt to redeem all Shares held in their account by
using the check redemption procedure.
EXPEDITED REDEMPTION. Shares may be redeemed by calling the Transfer Agent
toll free, 1-800-632-2301. A redemption authorization which is contained in
the Shareholder Application, or a separate authorization form must be filed
with the Fund before a Shareholder may redeem in this manner. All telephone
requests for redemptions must be received before the close of the New York
Stock Exchange each business day.
10
<PAGE>
Shareholders may request that proceeds of $1,000 or more be wired directly
to a commercial bank account. There is a fee of $15 for each wire redemption.
CONTINGENT DEFERRED SALES CHARGE. The Fund does not impose either an initial
sales charge or a contingent deferred sales charge. If, however, a Shareholder
redeemed Shares acquired from an exchange into the Fund of Class I shares of
another of the Franklin Templeton Funds which would have assessed a contingent
deferred sales charge upon redemption, such charge will be made by the Fund,
as described below. The 12-month contingency period will be tolled (or
stopped) for the period such Shares are exchanged into and held in the Fund.
In certain Franklin Templeton Funds, in order to recover commissions paid to
dealers on investments of $1 million or more, a contingent deferred sales
charge of 1% applies to certain redemptions made by those investors within 12
months of the calendar month of such investments. The charge is 1% of the
lesser of the value of the Shares redeemed (exclusive of reinvested dividends
and capital gains distributions) or the total cost of such Shares, and is
retained by FTD. In determining if a charge applies, Shares not subject to a
contingent deferred sales charge are deemed to be redeemed first, in the
following order: (i) Shares representing amounts attributable to capital
appreciation; (ii) Shares purchased with reinvested dividends and capital
gains distributions; and (iii) other Shares held longer than 12 months,
followed by any Shares held less than 12 months, on a "first in, first out"
basis.
TELEPHONE TRANSACTIONS
Shareholders of the Fund and their investment representative of record, if
any, may be able to execute various transactions by calling Shareholder
Services at 1-800-632-2301.
All Shareholders will be able to: (i) effect a change in address;
(ii) change a dividend option (see "Restricted Accounts" below);
(iii) transfer Fund Shares in one account to another identically registered
account in the Fund; (iv) request the issuance of certificates (to be sent to
the address of record only); and (v) exchange Fund Shares by telephone as
described in this Prospectus.
VERIFICATION PROCEDURES. The Fund and the Transfer Agent will employ
reasonable procedures to confirm that instructions communicated by telephone
are genuine. These will include: recording all telephone calls requesting
account activity by telephone, requiring that the caller provide certain
personal and/or account information requested by the telephone service agent
at the time of the call for the purpose of establishing the caller's
identification, and sending a confirmation statement on redemptions to the
address of record each time account activity is initiated by telephone. So
long as the Fund and the Transfer Agent follow instructions communicated by
telephone which were reasonably believed to be genuine at the time of their
receipt, neither they nor their affiliates will be liable for any loss to the
Shareholder caused by an unauthorized transaction. The Fund and the Transfer
Agent may be liable for any losses due to unauthorized or fraudulent
instructions in the event such reasonable procedures are not followed.
Shareholders are, of course, under no obligation to apply for or accept
telephone transaction privileges. In any instance where the Fund or the
Transfer Agent is not reasonably satisfied that instructions received by
telephone are genuine, the requested transaction will not be executed, and
neither the Fund, the Transfer Agent, nor their affiliates will be liable for
any losses which may occur because of a delay in implementing a transaction.
RESTRICTED ACCOUNTS. Telephone redemptions and dividend option changes may
not be accepted on Franklin Templeton retirement accounts. To assure
compliance with all applicable regulations, special forms are required for any
distribution, redemption, or dividend payment. While the telephone exchange
privilege is extended to Franklin Templeton IRA and 403(b) retirement
accounts, certain restrictions may apply to other types of retirement plans.
Changes to dividend options must also be made in writing.
To obtain further information regarding distribution or transfer procedures,
including any required forms, retirement account Shareholders may call to
speak to a Retirement Plan Specialist at 1-800/527-2020.
11
<PAGE>
GENERAL. During periods of drastic economic or market changes, it is
possible that the telephone transaction privileges will be difficult to
execute because of heavy telephone volume. In such situations, Shareholders
may wish to contact their dealer for assistance, or to send written
instructions to the Fund as detailed elsewhere in this Prospectus.
Neither the Fund nor the Transfer Agent will be liable for any losses
resulting from the inability of a Shareholder to execute a telephone
transaction. The telephone transaction privilege may be modified or
discontinued by the Fund at any time upon 60 days' written notice to
Shareholders.
MANAGEMENT OF THE FUND
The Trust is managed by the Board of Trustees and all powers are exercised
by or under authority of the Board. Information relating to the Trustees and
Executive Officers of the Trust is set forth under the heading "Management of
the Trust" in the SAI.
INVESTMENT MANAGER. The Investment Manager of the Fund is Templeton Global
Bond Managers, a division of Templeton Investment Counsel, Inc., Broward
Financial Centre, Fort Lauderdale, Florida 33394-3091. The Investment Manager
manages the investment and reinvestment of the Fund's assets. The Investment
Manager is an indirect wholly owned subsidiary of Franklin Resources, Inc.
("Franklin"). Through its subsidiaries, Franklin is engaged in various aspects
of the financial services industry. The Investment Manager and its affiliates
serve as advisers for a wide variety of public investment mutual funds and
private clients in many nations. The Templeton organization has been investing
globally over the past 52 years and, with its affiliates, provides investment
management and advisory services to a worldwide client base, including over
4.3 million mutual fund shareholders, foundations, endowments, employee
benefit plans and individuals. The Investment Manager and its affiliates have
approximately 4,100 employees in the United States, Australia, Scotland,
Germany, Hong Kong, Luxembourg, Bahamas, Singapore, Canada and Russia.
The Investment Manager has an extensive global network of investment
research sources. Many different selection methods are used for different
funds and clients and these methods are changed and improved by the Investment
Manager's research on superior selection methods.
The Investment Manager does not furnish any other services or facilities for
the Fund, although such expenses are paid by some investment advisers of other
investment companies. As compensation for its services, the Fund pays the
Investment Manager a fee which, during the most recent fiscal year,
represented 0.35% of its average daily net assets. Further information
concerning the Investment Manager is included under the heading "Investment
Management and Other Services" in the SAI.
BUSINESS MANAGER. Templeton Global Investors, Inc., provides certain
administrative facilities and services for the Fund, including payment of
salaries of officers, supervision of the preparation of tax returns,
preparation of financial reports, monitoring compliance with regulatory
requirements and monitoring tax-deferred retirement plans. For its services,
the Business Manager receives a monthly fee equivalent on an annual basis to
0.15% of the combined average daily net assets of the Funds included in the
Trust (the Fund and Templeton Income Fund), reduced to 0.135% of such combined
net assets in excess of $200 million, to 0.10% of such assets in excess of
$700 million and to 0.075% of such assets in excess of $1,200 million.
TRANSFER AGENT. Franklin Templeton Investor Services, Inc. serves as
transfer agent and dividend disbursing agent for the Fund.
CUSTODIAN. The Chase Manhattan Bank, N.A. serves as custodian of the Fund's
assets.
PLAN OF DISTRIBUTION. The Fund has a plan of distribution or "12b-1 Plan"
under which it may reimburse FTD for its costs and expenses for activities
primarily intended to result in the sale of Fund Shares. Expenditures by the
Fund under the plan may not exceed 0.15% annually of the Fund's average daily
net assets. Under the plan, costs and expenses not reimbursed in any one given
quarter
12
<PAGE>
(including costs and expenses not reimbursed because they exceeded the limit
of 0.15% per annum of the Fund's average daily net assets) may be reimbursed
in subsequent quarters or years, subject to applicable law. FTD has informed
the Fund that the costs and expenses that may be reimbursable in future
quarters or years were $13,173 (0.01% of its net assets) at August 31, 1995.
EXPENSES. For the fiscal year ended August 31, 1995, expenses amounted to
0.99% of the Fund's average daily net assets. See the Expense Table for
information regarding estimated expenses for the current fiscal year.
BROKERAGE COMMISSIONS. The Investment Manager will place all orders for the
purchase and sale of securities. The Fund's brokerage policies provide that
the receipt of research services from a broker and the sale of Shares by a
broker are factors which may be taken into account in allocating securities
transactions, so long as the prices and execution provided by the broker equal
the best available within the scope of the Fund's brokerage policies.
GENERAL INFORMATION
DESCRIPTION OF SHARES/SHARE CERTIFICATES. The capitalization of the Trust
consists of an unlimited number of Shares of beneficial interest, par value
$0.01 per Share. The Board of Trustees is authorized, in its discretion, to
classify and allocate the unissued Shares of the Trust. Each Share entitles
the holder to one vote.
Shares for an initial investment, as well as subsequent investments,
including the reinvestment of dividends and capital gain distributions, are
generally credited to an account in the name of an investor on the books of
the Fund, without the issuance of a share certificate. Maintaining shares in
uncertificated form (also known as "plan balance") minimizes the risk of loss
or theft of a share certificate. No charge is made for the issuance of one
certificate for all or some of the Shares purchased in a single order. A lost,
stolen or destroyed certificate cannot be replaced without obtaining a
sufficient indemnity bond. The cost of such a bond, which is generally borne
by the shareholder, can be 2% or more of the value of the lost, stolen or
destroyed certificate. A certificate will be issued if requested by the
shareholder or by the securities dealer.
MEETINGS OF SHAREHOLDERS. The Trust is not required to hold regular annual
meetings of Shareholders and may elect not to do so. The Trust will call a
special meeting of Shareholders when requested to do so by Shareholders
holding at least 10% of the Trust's outstanding Shares. In addition, the Trust
is required to assist Shareholder communications in connection with the
calling of Shareholder meetings to consider removal of a Trustee or Trustees.
Under Massachusetts law, Shareholders could, under certain circumstances, be
held personally liable for the obligations of the Trust. However, the
Declaration of Trust disclaims liability of the Shareholders, Trustees and
officers of the Trust for acts or obligations of the Trust, which are binding
only on the assets and property of the Trust. The Declaration of Trust
provides for indemnification out of Trust property for all loss and expense of
any Shareholder held personally liable for the obligations of the Trust. The
risk of a Shareholder incurring financial loss on account of Shareholder
liability is limited to circumstances in which the Trust itself would be
unable to meet its obligations and, thus, should be considered remote.
DIVIDENDS AND DISTRIBUTIONS. The Fund's net investment income (consisting of
interest accrued or discount earned less amortization of premium and estimated
expenses) and net realized short-term gains is declared as a dividend daily,
including weekends and holidays, immediately prior to the determination of net
asset value, and is paid to Shareholders monthly. Dividends are declared and
reinvested starting on the day after (whether or not a business day) the
Shares are issued and including the day on which Shares are redeemed.
Income dividends paid by the Fund on its Shares are automatically reinvested
on the payable date in whole or fractional Shares of the Fund at net asset
value as of the ex-dividend date, unless a Shareholder makes a written or
telephonic request for payments in
13
<PAGE>
cash. Shareholders will receive a monthly summary of their accounts, including
information as to dividends paid during the month and the Shares credited to
the account through reinvestment of dividends.
Distribution checks are forwarded by first-class mail to the address of
record. The proceeds of any such checks which are not accepted by the
addressee and returned to the Fund will be reinvested in the Shareholder's
account in whole or fractional Shares at net asset value next computed after
the check has been received by the Transfer Agent. Subsequent distributions
will be reinvested automatically at net asset value as of the ex-dividend date
in additional whole or fractional Shares.
FEDERAL TAX INFORMATION. The Fund intends to elect to be treated and to
qualify each year as a regulated investment company under Subchapter M of the
Code. See the SAI for a summary of the requirements that must be satisfied to
so qualify. A regulated investment company generally is not subject to federal
income tax on income and gains distributed in a timely manner to its
shareholders. The Fund intends to distribute to Shareholders substantially all
of its net investment income and net realized capital gains, which are
expected to be treated as ordinary income in their hands. Distributions
declared in October, November or December to Shareholders of record on a date
in such month and paid during the following January will be treated as having
been received by Shareholders on December 31 of the year in which such
distributions were declared. The Fund will inform Shareholders each year of
the amount and nature of income or gains distributed to them. Sales or other
dispositions of Fund Shares generally will give rise to taxable gain or loss.
A more detailed description of tax consequences to Shareholders is contained
in the SAI under the heading "Tax Status."
The Fund may be required to withhold Federal income tax at the rate of 31%
of all taxable distributions (including redemptions) paid to Shareholders who
fail to provide the Fund with their correct taxpayer identification number or
to make required certifications or where the Fund or the Shareholder has been
notified by the Internal Revenue Service that the Shareholder is subject to
backup withholding. Corporate Shareholders and certain other Shareholders
specified in the Code are exempt from backup withholding. Backup withholding
is not an additional tax. Any amounts withheld may be credited against the
Shareholder's federal income tax liability.
INQUIRIES. Shareholders' inquiries will be answered promptly. They should be
addressed to Franklin Templeton Investor Services, Inc., P.O. Box 33030, St.
Petersburg, Florida 33733-8030--telephone 1-800-632-2301. Transcripts of
Shareholder accounts less than three-years old are provided on request without
charge; requests for transcripts going back more than three years from the
date the request is received by the Transfer Agent are subject to a fee of up
to $15 per account.
PERFORMANCE INFORMATION. The Fund may include its yield, effective yield
and/or total return in advertisements or reports to Shareholders or
prospective investors. The Fund calculates current yield by annualizing the
dividend for the most recent seven-day period and dividing by the net asset
value on the last day of the period for which yield is presented. The Fund's
effective yield is calculated similarly but assumes that income earned from
the investment is reinvested. The Fund's effective yield will be slightly
higher than its yield because of the compounding effect of this assumed
reinvestment. Quotations of average annual total return will be expressed in
terms of the average annual compounded rate of return on a hypothetical
investment in the Fund over a period of 1, 5 and 10 years (or up to the life
of the Fund), will reflect the deduction of a proportional share of Fund
expenses (on an annual basis), and will assume that all dividends and
distributions are reinvested when paid. Total return may be expressed in terms
of the cumulative value of an investment in the Fund at the end of a defined
period of time. For a description of the methods used to determine yield,
effective yield and total return for the Fund, see "Yield and Performance
Information" in the SAI.
STATEMENTS AND REPORTS. The Fund's fiscal year ends on August 31. Annual
reports (containing financial statements audited by independent auditors and
additional information regarding the Fund's performance) and semiannual
reports (containing unaudited financial statements) are sent to Shareholders
each year. To reduce the volume of mail sent to one household as well as to
reduce Fund expenses, the Transfer Agent will attempt to identify related
Shareholders within a household and send only one copy of the report.
Additional copies may be obtained, without charge, upon request to the Fund
Information Department--telephone 1-800/DIAL BEN. The Fund also sends to each
Shareholder a confirmation statement after every transaction that affects the
Shareholder's account and a year-end historical confirmation statement.
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<PAGE>
INSTRUCTIONS AND IMPORTANT NOTICE
SUBSTITUTE W-9 INSTRUCTIONS INFORMATION
GENERAL. Backup withholding is not an additional tax. Rather, the tax
liability of persons subject to backup withholding will be reduced by the
amount of tax withheld. If withholding results in an overpayment of taxes, a
refund may be obtained from the Internal Revenue Service ("IRS").
OBTAINING A NUMBER. If you do not have a Social Security Number/Taxpayer
Identification Number ("SSN/TIN"), you must obtain Form SS-5 or Form SS-4 from
your local Social Security or IRS office and apply for one. If you have
checked the "Awaiting TIN" box and signed the certification, withholding will
apply to payments relating to your account unless you provide a certified TIN
within 60 days.
WHAT SSN/TIN TO GIVE. Please refer to the following guidelines:
<TABLE>
<CAPTION>
ACCOUNT TYPE GIVE SSN OF ACCOUNT TYPE GIVE TAXPAYER ID # OF
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
. Individual Individual . Trust, Estate, or Pension Plan Trust Trust, Estate, or Pension Plan Trust
- ------------------------------------------------------------------------------------------------------------------------------------
. Joint Individual Actual owner of account, . Corporation, Partnership, or other Corporation, Partnership, or other
or if combined funds, organization organization
the first-named individual
- ------------------------------------------------------------------------------------------------------------------------------------
. Unif. Gift/Transfer Minor . Broker nominee Broker nominee
to Minor
- ------------------------------------------------------------------------------------------------------------------------------------
. Sole Proprietor Owner of business
- ------------------------------------------------------------------------------------------------------------------------------------
. Legal Guardian Ward, Minor, or Incompetent
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
EXEMPT RECIPIENTS. Please provide your TIN and check the "Exempt Recipient"
box if you are an exempt recipient. Exempt recipients generally include:
A corporation A real estate investment trust
A financial institution A common trust fund operated by a bank
under section 584(a)
An organization exempt from tax An entity registered at all times
under section 501(a), or an under the Investment Company
individual retirement plan Act of 1940
A registered dealer in securities or
commodities registered in the U.S.
or a U.S. possession
IRS PENALTIES. If you do not supply us with your SSN/TIN, you will be subject
to an IRS $50 penalty unless your failure is due to reasonable cause and not
willful neglect. If you fail to report certain income on your Federal income
tax return, you will be treated as negligent and subject to an IRS 20% penalty
on any underpayment of tax attributable to such negligence, unless there was
reasonable cause for the resulting underpayment and you acted in good faith.
If you falsify information on this form or make any other false statement
resulting in no backup withholding on an account which should be subject to
backup withholding, you may be subject to an IRS $500 penalty and certain
criminal penalties including fines and imprisonment.
SUBSTITUTE W-8 INSTRUCTIONS INFORMATION
EXEMPT FOREIGN PERSON. Check the "Exempt Foreign Person" box if you qualify as
a non-resident alien or foreign entity that is not subject to certain U.S.
information return reporting or to backup withholding rules. Dividends paid to
your account may be subject to withholding of up to 30%. Generally, you are an
"Exempt Foreign Person" if you are not (1) a citizen or resident of the U.S.,
or (2) a U.S. corporation, partnership, estate, or trust. In the case of an
individual, an "Exempt Foreign Person" is one who has been physically present
in the U.S. for less than 31 days during the current calendar year. An
individual who is physically present in the U.S. for at least 31 days during
the current calendar year will still be treated as an "Exempt Foreign Person,"
provided that the total number of days physically present in the current
calendar year and the two preceding calendar years does not equal or exceed
183 days (counting all of the days in the current calendar year, only one-
third of the days in the first preceding calendar year and only one-sixth of
the days in the second preceding calendar year). In addition, lawful permanent
residents or green card holders may not be treated as "Exempt Foreign
Persons." If you are an individual or an entity, you must not now be, or at
this time expect to be, engaged in a U.S. trade or business with respect to
which any gain derived from transactions effected by the Fund/Payer during the
calendar year is effectively connected to the U.S.
PERMANENT ADDRESS. The Shareholder Application must contain your permanent
address if you are an "Exempt Foreign Person." If you are an individual,
provide your permanent address. If you are a partnership or corporation,
provide the address of your principal office. If you are an estate or trust,
provide the address of your permanent residence or the principal office of any
fiduciary.
NOTICE OF CHANGE IN STATUS. If you become a U.S. citizen or resident after you
have provided certification of your foreign status, or if you cease to be an
"Exempt Foreign Person," you must notify the Fund/Payer within 30 days of your
change in status. Reporting will then begin on the account(s) listed, and
backup withholding may also begin unless you certify to the Fund/Payer that
(1) the taxpayer identification number you have given is correct, and (2) the
IRS has not notified you that you are subject to backup withholding because
you failed to report certain interest or dividend income. You may use Form W-
9, "Payer's Request for Taxpayer Identification Number and Certification," to
make these certifications. If an account is no longer active, you do not have
to notify a Fund/Payer or broker of your change in status unless you also have
another account with the same Fund/Payer that is still active. If you receive
interest from more than one Fund/Payer or have dealings with more than one
broker or barter exchange, file a certificate with each. If you have more than
one account with the same Fund/Payer, the Fund/Payer may require you to file a
separate certificate for each account.
WHEN TO FILE. File these certifications with the Fund before a payment is made
to you, unless you have already done this in either of the two preceding
calendar years. Only certifications that are in proper order will be treated
as having been filed with the Fund.
HOW OFTEN YOU MUST FILE. This certificate generally remains in effect for
three calendar years. A Fund/Payer or broker, however, may require that a new
certificate be filed each time a payment is made. On joint accounts for which
each joint owner is a foreign person, each must provide a certification of
foreign status.
15
<PAGE>
FOR CORPORATE SHAREHOLDERS--FORM OF RESOLUTION
It will be necessary for corporate shareholders to provide a certified copy of
a resolution or other certificate of authority to authorize the purchase as
well as sale (redemption) of shares and withdrawals by checks or drafts. You
may use the following form of resolution or you may prefer to use your own. It
is understood that each Fund, Franklin Templeton Distributors, Inc., Franklin
Templeton Investor Services, Inc., the custodian bank and their affiliates may
rely upon these authorizations until revoked or amended by written notice
delivered by registered or certified mail to a Fund.
CERTIFIED COPY OF RESOLUTION (Corporation or Association)
The undersigned hereby certifies and affirms that he/she is the duly elected
___________________________ of _______________________________________________
TITLE CORPORATE NAME
a _________________________ organized under the laws of the State of ___________
TYPE OF ORGANIZATION STATE
and that the following is a true and correct copy of a resolution adopted by the
Board of Directors at a meeting duly called and held on ________________________
DATE
RESOLVED, that the ________________________________________________ of this
OFFICERS' TITLES
Corporation or Association are authorized to open an account in the name of
the Corporation or Association with one or more of the Franklin Group of
Funds (R) or Templeton Family of Funds (collectively, the "Funds") and to
deposit such funds of this Corporation or Association in this account as
they deem necessary or desirable; that the persons authorized below may
endorse checks and other instruments for deposit to said account or
accounts; and
FURTHER RESOLVED, that any of the following _______________ officers are
NUMBER
authorized to sign any share assignment on behalf of this Corporation or
Association and to take any other actions as may be necessary to sell or
redeem its shares in the Funds or to sign checks or drafts withdrawing funds
from the account; and
FURTHER RESOLVED, that this Corporation or Association shall hold harmless,
indemnify, and defend the Funds, their custodian bank, Franklin Templeton
Distributors, Inc., Franklin Templeton Investor Services, Inc., and their
affiliates, from any claim, loss or liability resulting in whole or in
part, directly or indirectly, from their reliance from time to time upon
any certifications by the secretary or any assistant secretary of this
Corporation or Association as to the names of the individuals occupying
such offices and their acting in reliance upon these resolutions until
actual receipt by them of a certified copy of a resolution of the Board of
Directors of the Corporation or Association modifying or revoking any or
all such resolutions.
The undersigned further certifies that the below named persons, whose
signatures appear opposite their names and office titles, are duly elected
officers of the Corporation or Association. (Attach additional list if
necessary.)
- -------------------------------------- ---------------------------------------
NAME/TITLE (PLEASE PRINT OR TYPE) SIGNATURE
- -------------------------------------- ---------------------------------------
NAME/TITLE (PLEASE PRINT OR TYPE) SIGNATURE
- -------------------------------------- ---------------------------------------
NAME/TITLE (PLEASE PRINT OR TYPE) SIGNATURE
- -------------------------------------- ---------------------------------------
NAME/TITLE (PLEASE PRINT OR TYPE) SIGNATURE
- -------------------------------------- ---------------------------------------
NAME OF CORPORATION OR ASSOCIATION DATE
Certified from minutes ___________________________________________________
NAME AND TITLE
CORPORATE SEAL (if appropriate)
16
<PAGE>
The Franklin Templeton Group
Literature Request -- Call today for a free descriptive brochure and prospectus
on any of the funds listed below. The prospectus contains more complete
information, including fees, charges and expenses, and should be read carefully
before investing or sending money.
<TABLE>
<S> <C> <C>
TEMPLETON FUNDS Maryland FRANKLIN FUNDS SEEKING
American Trust Massachusetts*** HIGH CURRENT INCOME
Americas Government Securities Fund Michigan*** AGE High Income Fund
Developing Markets Trust Minnesota*** German Government Bond Fund
Foreign Fund Missouri Global Government Income Fund
Global Infrastructure Fund New Jersey Investment Grade Income Fund
Global Opportunities Trust New York* U.S. Government Securities Fund
Greater European Fund North Carolina
Growth Fund Ohio*** FRANKLIN FUNDS SEEKING HIGH CURRENT
Growth and Income Fund Oregon INCOME AND STABILITY OF PRINCIPAL
Income Fund Pennsylvania Adjustable Rate Securities Fund
Japan Fund Tennessee** Adjustable U.S. Government Securities Fund
Latin America Fund Texas Short-Intermediate U.S. Government Securities Fund
Money Fund Virginia
Real Estate Securities Fund Washington** FRANKLIN FUNDS FOR NON-U.S. INVESTORS
Smaller Companies Growth Fund Tax-Advantaged High Yield Securities Fund
World Fund FRANKLIN FUNDS Tax-Advantaged International Bond Fund
SEEKING CAPITAL GROWTH Tax-Advantaged U.S. Government Securities Fund
FRANKLIN FUNDS California Growth Fund
SEEKING TAX-FREE INCOME DynaTech Fund FRANKLIN TEMPLETON INTERNATIONAL
Federal Intermediate Term Equity Fund FUNDS CURRENCY
Tax-Free Income Fund Global Health Care Fund Global Currency Fund
Federal Tax-Free Income Fund Gold Fund Hard Currency Fund
High Yield Tax-Free Income Fund Growth Fund High Income Currency Fund
Insured Tax-Free Income Fund*** International Equity Fund
Puerto Rico Tax-Free Income Fund Pacific Growth Fund FRANKLIN MONEY MARKET FUNDS
Real Estate Securities Fund California Tax-Exempt Money Fund
FRANKLIN STATE-SPECIFIC FUNDS Small Cap Growth Fund Federal Money Fund
SEEKING TAX-FREE INCOME IFT U.S. Treasury Money Market Portfolio
Alabama FRANKLIN FUNDS SEEKING Money Fund
Arizona* GROWTH AND INCOME New York Tax-Exempt Money Fund
Arkansas** Balance Sheet Investment Fund Tax-Exempt Money Fund
California* Convertible Securities Fund
Colorado Equity Income Fund FRANKLIN FUND FOR CORPORATIONS
Connecticut Global Utilities Fund Corporate Qualified Dividend Fund
Florida* Income Fund
Georgia Premier Return Fund FRANKLIN TEMPLETON VARIABLE ANNUITIES
Hawaii** Rising Dividends Fund Franklin Valuemark
Indiana Strategic Income Fund Franklin Templeton Valuemark Income
Kentucky Utilities Fund Plus (an immediate annuity)
Louisiana
</TABLE>
Toll-free 1-800-DIAL BEN (1-800-342-5236)
* Two or more fund options available: long-term portfolio, intermediate-term
portfolio, a portfolio of municipal securities, and a high yield portfolio
(CA).
** The fund may invest up to 100% of its assets in bonds that pay interest
subject to the federal alternative minimum tax.
*** Portfolio of insured municipal securities.
17
<PAGE>
NOTES
----
18
<PAGE>
NOTES
----
19
<PAGE>
- --------------------------------------------------------------------------------
TEMPLETON MONEY FUND
PRINCIPAL UNDERWRITER:
Franklin Templeton
Distributors, Inc.
700 Central Avenue
St. Petersburg,
Florida 33701-3628
Shareholder Services
1-800-632-2301
Fund Information
1-800/DIAL BEN
Institutional Services
1-800-321-8563
Dealer Services
1-800-524-4040
Retirement Plan Services
1-800-527-2020
This Prospectus is not an offering of the securities herein described in any
state in which the offering is not authorized. No sales representative, dealer,
or other person is authorized to give any information or make any
representations other than those contained in this Prospectus. Further
information may be obtained from the Principal Underwriter.
- --------------------------------------------------------------------------------
[RECYCLING LOGO APPEARS HERE]
TL407 P 1/96
TEMPLETON
MONEY
FUND
Prospectus
January 1, 1996
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
<PAGE>
REGISTRATION--PLEASE PRINT
INSTRUCTIONS FOR COMPLETING APPLICATION
- -------------------------------------------------------------------------------
Please follow these instructions to establish your account. If you have a
question please call toll free 1-800-354-9191.
Please note that you are required to send a completed application, including
the appropriate tax identification number, and that the application must be
received before withdrawal instructions can be accepted.
TWO WAYS TO INVEST
1) By Mail -- Complete the application and mail it with your check to:
Templeton Money Fund
P.O. Box 33031
St. Petersburg, FL 33733-8031
2) By Wire -- If your initial investment is being made by wire, please call us
at our toll free number for instructions. Federal Funds should be wired to:
Chase Manhattan Bank, New York , NY
Account No 910-2-581015
Re: Templeton Money Fund
Account of: (your account as it will be registered)
<TABLE>
<CAPTION>
====================================================================================================================================
<S> <C> <C>
TEMPLETON MONEY FUND (FTD USE ONLY)
700 CENTRAL AVENUE/P.O. BOX 33031, ST. PETERSBURG, FLORIDA 33733-8031 ======================================================
NEW ACCOUNT APPLICATION
For initial investment only (DO NOT USE FOR TEMPLETON
PROTOTYPE KEOGH OR IRA PLANS. REQUEST SEPARATE
PLEASE FILL OUT AND SIGN BOTH SIDES OF THIS FORM APPLICATIONS.)
====================================================================================================================================
IF YOU NEED ASSISTANCE IN COMPLETING THIS APPLICATION, PLEASE CALL TOLL FREE, 1-800-354-9191.
- ------------------------------------------------------------------------------------------------------------------------------------
Enclosed is my check, payable to Templeton Money Fund, for $ ____________________ ($500 minimum for initial investment and $25
minimum for subsequent investments) to purchase shares of the Fund.
====================================================================================================================================
FOR WIRED
FUNDS ONLY Amount $________ Date of wired investment from your bank _______________________________________________, 19__
====================================================================================================================================
INDIVIDUAL 1. Individual [_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_] [_][_][_][_][_][_][_][_][_]
USE LINE 1 First Name Initial Last Name Soc. Sec. No.
JOINT TENANTS 2. Joint Tenants [_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_] [_][_][_][_][_][_][_][_][_]
USE LINES 1 & 2 First Name Initial Last Name Soc. Sec. No.
"Joint Tenants with Right of Survivorship and not as Tenants in Common" (Unless Otherwise Specified)
GIFTS/TRANSFERS 3. Gifts/Transfers [_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_] [_][_][_][_][_][_][_][_][_]
TO MINORS to Minors Custodian's Name (Only One Can Be Named) Minor's Soc. Sec. No.
USE LINE 3
[_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_]
Minor's Name (Only One)
Under the __________________________________ Uniform Gifts/Transfers to Minors Act
State of Residence
====================================================================================================================================
CITIZEN OF United States [_] Yes [_] No [_] Resident of: ___________________________________________
====================================================================================================================================
CORPORATIONS,
TRUSTS, 4. Corporations, Trusts, etc. [_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_]
OR OTHER
FIDUCIARIES ________________________________ [_][_][-][_][_][_][_][_][_][_][_] [_][_][_][_][_][_][_][_][_][_][_][_][_][_][_]
USE LINE 4 Date of Trust Instrument Tax I.D. No. Name of Beneficiary (If to Be Included in
Registration)
[_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_][_]
Name of Trustees (If to Be Included in Registration)
====================================================================================================================================
ADDRESS
____________________________________________________________ (________) ________________________________________
Street Area Code Business Hours Phone
__________________________________________________________________________________________________________________
City, State, Zip
====================================================================================================================================
</TABLE>
<PAGE>
DIVIDENDS All dividends to be paid in additional shares, credited monthly.
================================================================================
SYSTEMATIC To receive fixed payments [_] Monthly [_] Quarterly [_] Semi-
WITHDRAWAL Annually [_] Annually of $50 or more, check one box and indicate
PLAN dollar amount $____________________. (For accounts with balance of
$10,000 or more.)
================================================================================
- - - - - - - - - - - - - - - - - - - - - - - - - - -
SIGNATURE CARD Account Number TEMPLETON MONEY FUND Signature
FOR CHECK WRITING SERVICE First Union National Card
(See reverse side for Bank of Florida
terms and conditions) =====================================================
Account Name(s) -- same as Shareholder Account
Registration
-----------------------------------------------------
AUTHORIZED 1. ___________________________________
SIGNATURE(S): 2. ___________________________________
Please fill out this card 3. ___________________________________
if you elect the 4. ___________________________________
Check-Writing Service.
It is similar to the [_] Check if all parties to the
card you must complete account must sign the check.
when opening a checking [_] Check if combination of [_]
account with any bank. signatures is required and
Please make certain that specify number in box.
all authorized persons
have signed.
IMPORTANT! In signing this signature card, the signature(s)
signifies his/her or their agreement to be
PLEASE COMPLETE REVERSE subject to the rules and regulations of First
SIDE FOR THE TELEPHONE Union National Bank of Florida pertaining thereto
REDEMPTION SERVICE AND and as amended from time to time.
ALL SIGNATURES.
- ---
SUBJECT TO CONDITIONS PRINTED ON THE REVERSE SIDE
Rev. 3/94
<PAGE>
================================================================================
TELEPHONE EXCHANGE SERVICE
- -------------------------------------------------------------------------------
I/We accept Telephone Exchange Privileges between all Franklin Templeton Funds
so qualified for all accounts with the identical registration/ownership. I/We
acknowledge that I/we are subject to certain specific restrictions, complete
details of which are described in the Fund's Prospectus, which I/we have
received and read. I/We DO NOT want Telephone Exchange Privileges -- please
check box [_]
================================================================================
EXPEDITED TELEPHONE REDEMPTION -- COMMERCIAL BANK WIRE INSTRUCTIONS (MINIMUM,
$1,000)
- -------------------------------------------------------------------------------
If this service is requested the Fund will, upon receipt of telephone or
telegraph instructions, redeem shares and wire the proceeds of the redemption as
indicated. The shareholder agrees that the Transfer Agent will forward the
proceeds of an expedited redemption in accordance with the Fund's Prospectus.
Deposit to COMMERCIAL BANK ACCOUNT ONLY with the identical registration of this
account (Bank Wires are subject to a $15.00 bank fee).
- -------------------------------------- ---------------------------------------
Name on Bank Account Address of Bank
- -------------------------------------- ---------------------------------------
Bank Account Number City State Zip
- -------------------------------------- ABA Routing
Name of Bank Number _______________________
+ IMPORTANT -- A NEW FORM MUST BE EXECUTED IF THESE INSTRUCTIONS ARE CHANGED +
================================================================================
CHECK WRITING SERVICE -- TERMS AND CONDITIONS
- -------------------------------------------------------------------------------
Pursuant to this request, the Agent will establish a checking account for the
shareholder. Upon presentation of a check to the Agent for payment, the Fund
will redeem shares from the shareholder's account sufficient to cover the amount
of the check. Checks in amounts less than $500 or more than $500,000 will not be
honored. The shareholder agrees that: 1) the Agent will return unpaid and marked
"Non-Sufficient Funds" any check the amount of which exceeds the value of the
shareholder's account at the time of presentation; 2) the Agent will not make
payment on any check if the shares being redeemed to make such payment had been
purchased by check within the previous 15 days and that any such check drawn on
such uncollected funds will be returned marked "Non-Sufficient Funds"; 3) the
Fund and/or its agents will not be liable for any loss, expense or cost arising
out of check redemptions; and 4) the account will be subject to the Agent's
rules and regulations governing checking accounts. In addition, if there is more
than one shareholder owning an interest in the account, and if the shareholders
authorize, in signing the signature card, checks to be signed by less than all
of the owners of such account, then all shareholders owning an interest in the
account agree that shares sufficient to cover the amount of such check may be
redeemed upon presentation of a check signed by such authorized owners.
The Agent has reserved the right to change, modify or terminate this
checking account privilege at any time.
================================================================================
SIGNATURE AND TAX CERTIFICATIONS -- ALL REGISTERED OWNERS MUST SIGN APPLICATION
- --------------------------------------------------------------------------------
The Fund reserves the right to refuse to open an account without either a
certified Taxpayer Identification Number ("TIN") or a certification of foreign
status. Failure to provide tax certifications in this section may result in
backup withholding on payments relating to your account and/or to your liability
to qualify for treaty withholding rules.
I am(We are) not subject to backup withholding because I(we) have not been
notified by the IRS that I am(we are) subject to backup withholding as a result
of a failure to report all interest or dividends or because the IRS has notified
me(us) that I am(we are) no longer subject to backup withholding. (If you are
currently subject to backup withholding as a result of a failure to report all
interest or dividends, please cross out the preceding statement.)
[_] The number shown above is my(our) correct TIN, or that of the Minor named in
Line 3.
[_] Awaiting TIN, I am(We are) waiting for a number to be issued to me(us).
I(We) understand that if I(we) do not provide a TIN to the Fund within 60
days the Fund is required to commence 31% backup withholding until I(we)
provide a certified TIN.
[_] Exempt Recipient. Individuals cannot be exempt. Check this box only after
reading the instructions to see whether you qualify as an exempt recipient.
(You should still provide a TIN.)
[_] Exempt Foreign Person. Check this box only if the following statement
applies: "I am(we are) neither a citizen nor a resident of the United
States. I(we) certify to the best of my(our) knowledge and belief, I(we)
qualify as an exempt foreign person and/or entity as described in the
instructions."
Permanent address for tax purposes:_________________________________________
Street Address City
____________________________________________________________________________
State County Postal Code
PLEASE NOTE; The IRS only allows one TIN to be listed on an account. On joint
accounts, it is preferred that the primary account owner (or person listed first
on the account) list his/her number as requested above. CERTIFICATION-Under the
penalties of perjury, I(we) certify that (1) the information provided on this
application is true, correct and complete, (2) I(we) have read the prospectus
for the Fund in which I am(we are) investing and agree to the terms thereof, and
(3) I am(we are) of legal age or an emancipated minor.
X X
______________________________________ _______________________________________
Signature Signature
X X
______________________________________ _______________________________________
Signature Signature
Please make a photocopy of this application for your records
================================================================================
BROKER/DEALER USE ONLY (PLEASE PRINT)
- --------------------------------------------------------------------------------
We hereby submit this application for the purchase Templeton Dealer #
of shares of the Fund indicated in accordance with the
terms of our selling agreement with Franklin Templeton ---------------------
Distributors, Inc., and with the Prospectus for the Fund.
WIRE ORDER ONLY: The attached check for $ ___________ should be applied against
wire order
Confirmation Number ________ Dated _________ For _____ Shares.
Securities Dealer Name _________________________________________________________
Main Office Address ____________________________________________________________
Branch # ___________ Rep # ______________ Representative Name _______________
Branch Address _________________________________ Telephone Number (___) _______
Authorized Signature, Securities Dealer _______________ Title _________________
- --------------------------------------------------------------------------------
ACCEPTED: Franklin Templeton Distributors, Inc.
By ______________________________ Date ____________
================================================================================
<PAGE>
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
THE PAYMENT OF FUNDS IS AUTHORIZED BY THE SIGNATURE(S) APPEARING ON THE
REVERSE SIDE.
If this card is signed by more than one person, all checks will require only
one of the signatures appearing exactly as on the reverse side unless
otherwise indicated. Each signator guarantees the genuineness of the other's
signature. The Powers of Attorney granted hereby shall not be affected by any
subsequent disability or incapacity on the part of any Depositor. Checks may
not be for less than $500 or more than $500,000.
First Union National Bank of Florida is hereby appointed agent by the
person(s) signing this card (the "Depositor(s)") and as agent, is authorized
and directed to present checks drawn on this checking account to the Fund
("Account") or its redemption agent as requests to redeem shares of the
Account registered in the name of the Depositor(s) in the amount of such
checks and to deposit the proceeds of such redemptions in this checking
account. The Agent shall be liable only for its own negligence.
Depositor(s) hereby authorizes the Account or its redemption agent to honor
redemption requests presented in the above manner by the Agent. The Account
and its redemption agent will not be liable for any loss, expense, cost or
damage arising out of check redemptions. Shares of the Account which were
purchased by check within fifteen (15) calendar days will not be redeemed. The
Agent has the right not to honor checks in amounts exceeding the value of the
Depositor(s) shareholder account at the time the check is presented for
payment.
The Agent reserves the right to change, modify or terminate this checking
account at any time upon notification mailed to the address of record of the
Depositor(s).
