o 181 STKP
SUPPLEMENT DATED NOVEMBER 17, 1997
TO THE PROSPECTUS OF
FRANKLIN NEW YORK INSURED TAX-FREE INCOME FUND
DATED MAY 1, 1997
The prospectus is amended as follows:
I. The fourth paragraph under "How does the Fund Invest its Assets? - Types
of Securities in which the Fund May Invest" is replaced with the following:
The Fund may invest up to 35% of its total assets in uninsured securities.
The types of uninsured securities in which the Fund may invest are currently
limited to (i) municipal securities secured by an escrow or trust account
consisting of direct U.S. government obligations; (ii) securities that are
rated in one of the three highest rating categories of a nationally
recognized rating service or that are unrated but are considered by Advisers
to be comparable in quality; or (iii) short-term, tax-exempt instruments,
pending investment in longer-term municipal securities, rated in the highest
rating category of Moody's, S&P or Fitch. The Fund's investment in the type
of securities described in (ii) above is limited, however, to no more than
20% of the Fund's total assets. For a description of the various rating
categories, please see the Appendix in the SAI.
II. The first two paragraphs and the first waiver category in the section
"Sales Charge Waivers," found under "How Do I Buy Shares? - Sales Charge
Reductions and Waivers," are replaced with the following:
Sales Charge Waivers. If one of the following sales charge waivers applies
to you or your purchase of Fund shares, you may buy shares of the Fund
without a front-end sales charge or a Contingent Deferred Sales Charge. All
of the sales charge waivers listed below apply to purchases of Class I shares
only, except for items 1 and 3 which also apply to Class II purchases.
Certain distributions, payments or redemption proceeds that you receive
may be used to buy shares of the Fund without a sales charge if you reinvest
them within 365 days of their payment or redemption date. They include:
1. Dividend and capital gain distributions from any Franklin Templeton
Fund or a real estate investment trust (REIT) sponsored or advised by
Franklin Properties, Inc. The distributions generally must be reinvested in
the same class of shares. Certain exceptions apply, however, to Class II
shareholders who chose to reinvest their distributions in Class I shares of
the Fund before November 17, 1997, and to Advisor Class or Class Z
shareholders of a Franklin Templeton Fund who may reinvest their
distributions in Class I shares of the Fund.
III. Under "What Distributions Might I Receive from the Fund? - Distribution
Options," the references in the first two paragraphs to the ability of
Class II shareholders to reinvest or direct their distributions to Class I
shares of the Fund or another Franklin Templeton Fund are deleted and the
following paragraph is added to the section:
Distributions may be reinvested only in the same class of shares, except
as follows: (i) Class II shareholders who chose to reinvest their
distributions in Class I shares of the Fund or another Franklin Templeton
Fund before November 17, 1997, may continue to do so; and (ii) Class II
shareholders may reinvest their distributions in shares of any Franklin
Templeton money fund.
