o NYT P-4
SUPPLEMENT DATED SEPTEMBER 1, 2000
TO THE PROSPECTUS OF
FRANKLIN NEW YORK TAX-FREE TRUST (FRANKLIN NEW YORK INSURED
TAX-FREE INCOME FUND,
FRANKLIN NEW YORK INTERMEDIATE-TERM TAX-FREE INCOME FUND
AND FRANKLIN NEW YORK TAX-EXEMPT MONEY FUND)
DATED MAY 1, 2000
The prospectus is amended as follows:
I. The section "Account Application" on page 38 is replaced with the following:
ACCOUNT APPLICATION If you are opening a new account, please complete and sign
the enclosed account application. Make sure you indicate the share class you
have chosen. If you do not indicate a class, we will place your purchase in
Class A shares. To save time, you can sign up now for services you may want on
your account by completing the appropriate sections of the application (see
"Investor Services" on page 40). For example, if you would like to link one of
your bank accounts to your fund account so that you may use electronic fund
transfers to and from your bank account to buy and sell shares, please complete
the bank information section of the application. We will keep your bank
information on file for future purchases and redemptions.
II. The following is added to the section "Buying shares" on page 39:
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[Insert graphic of If you have another Before requesting a
phone] BY PHONE Franklin Templeton telephone purchase,
fund account with please make sure we
(Up to $100,000 per day) your bank account have your bank
information on file, account information
1-800/632-2301 you may open a new on file. If we do
account by phone. not have this
information, you
To make a same day will need to send
investment, please written
call us by 1:00 p.m. instructions with
Pacific time or the your bank's name
close of the New York and address, a
Stock Exchange, voided check or
whichever is earlier. savings account
deposit slip, and a
signature guarantee if the
bank and fund accounts do
not have at least one
common owner.
To make a same day
investment, please call us
by 1:00 p.m. Pacific time
or the close of the New
York Stock Exchange,
whichever is earlier.
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III. The section "Telephone Privileges" on page 41 is replaced with the
following:
TELEPHONE PRIVILEGES You will automatically receive telephone privileges when
you open your account, allowing you and your investment representative to buy,
sell or exchange your shares and make certain other changes to your account by
phone. For accounts with more than one registered owner, telephone privileges
also allow the fund to accept written instructions signed by only one owner for
transactions and account changes that could otherwise be made by phone. For all
other transactions and changes, all registered owners must sign the
instructions. In addition, our telephone exchange privilege allows you to
exchange shares by phone from a fund account requiring two or more signatures
into an identically registered money fund account requiring only one signature
for all transactions. This type of telephone exchange is available as long as
you have telephone exchange privileges on your account.
As long as we take certain measures to verify telephone requests, we will not
be responsible for any losses that may occur from unauthorized requests. Of
course, you can decline telephone purchase, exchange or redemption privileges
on your account application.
IV. The last paragraph of the "Exchange Privilege" section on page 41 is
replaced with the following:
Because excessive trading can hurt fund performance, operations and
shareholders, each fund, effective November 1, 2000, reserves the right to
revise or terminate the exchange privilege, limit the amount or number of
exchanges, reject any exchange, or restrict or refuse purchases if (i) the fund
or its manager believes the fund would be harmed or unable to invest
effectively, or (ii) the fund receives or anticipates simultaneous orders that
may significantly affect the fund (please see "Market Timers" on page 47).
V. In the Selling Shares table on page 45 the section "By Electronic Funds
Transfer (ACH)" is replaced with the following:
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[Insert graphic of You can call or write to have redemption proceeds
three lightning sent to a bank account. See the policies above
bolts] BY ELECTRONIC for selling shares by mail or phone.
FUNDS TRANSFER (ACH)
Before requesting to have redemption proceeds sent to a
bank account, please make sure we have your bank account
information on file. If we do not have this information,
you will need to send written instructions with your
bank's name and address, a voided check or savings
account deposit slip, and a signature guarantee if the
bank and fund accounts do not have at least one common
owner.
If we receive your request in proper form by 1:00 p.m.
Pacific time, proceeds sent by ACH generally will be
available within two to three business days.
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VI. The section "Market Timers" on page 47 is replaced with the following:
MARKET TIMERS Each fund does not allow investments by Market Timers. You may be
considered a Market Timer if you have (i) requested an exchange out of any of
the Franklin Templeton funds within two weeks of an earlier exchange request
out of any fund, or (ii) exchanged shares out of any of the Franklin Templeton
funds more than twice within a rolling 90 day period, or (iii) otherwise seem
to follow a market timing pattern that may adversely affect the fund. Accounts
under common ownership or control with an account that is covered by (i), (ii),
or (iii) are also subject to these limits.
VII. The first category in the section "Additional Policies" on page 47 is
revised to read:
o The funds may restrict or refuse any order to buy shares, including any
purchase under the exchange privilege.
Please keep this supplement for future reference.
