August 2, 1994
DREYFUS NEW YORK TAX EXEMPT FUNDS
SUPPLEMENT TO COMBINED PROSPECTUS
DATED JULY 25, 1994
I. PROPOSED MERGER OF THE DREYFUS CORPORATION
The Dreyfus Corporation ("Dreyfus"),the adviser to the MONEY MARKET FUND
and the LONGER TERM FUNDS, has entered into an Agreement and Plan of Merger
providing for the merger (the "Merger") of Dreyfus with a subsidiary of Mellon
Bank, N.A. ("Mellon").
Following the Merger, it is planned that Dreyfus will be a direct
subsidiary of Mellon. Closing of the Merger is subject to a number of
contingencies, including approvals of the stockholders of Dreyfus and of
Mellon. The Merger is expected to occur in late August 1994, but could occur
significantly later.
The Merger will result in the automatic termination of each Fund's current
investment advisory agreement with Dreyfus, as required by the Investment
Company Act of 1940, as amended. The Merger also will necessitate
implementation of a new Service Plan as to the INTERMEDIATE BOND FUND only.
II. RESULTS OF EACH FUND'S SHAREHOLDER VOTE
THE FOLLOWING INFORMATION SUPPLEMENTS AND SUPERSEDES ANY CONTRARY
INFORMATION CONTAINED IN THE PROSPECTUS.
On August 2, 1994, each Fund's shareholders voted respectively to approve a
new investment advisory agreement with Dreyfus, and the shareholders of the
INTERMEDIATE BOND FUND voted to approved a new Service Plan, all to become
effective upon consummation of the Merger. The shareholders of each LONGER TERM
FUND voted to approve, respectively, changes to certain of each Fund's
fundamental policies and investment restrictions to permit each Fund to (i)
borrow money to the extent permitted under the Investment Company Act of 1940,
as amended and (ii) pledge its assets to the extent necessary to secure
permitted borrowings and make such policy non-fundamental. Shareholders of the
MONEY MARKET FUND voted to approve certain changes to the Fund 's fundamental
policy and investment restrictions to (i) increase to 15% of the value of the
Fund's net assets the amount the Fund may borrow from banks for temporary or
emergency (not leveraging) purposes, (ii) permit the Fund to pledge its assets
to the extent necessary to secure borrowings and make such policy non-
fundamental, and (iii) make the Fund's fundamental policy and investment
restriction which limits investment in illiquid securities to 10% of the Fund's
net assets non-fundamental.
III. REVISED MANAGEMENT POLICIES
THE FOLLOWING INFORMATION SUPPLEMENTS AND SHOULD BE READ IN CONJUNCTION
WITH, AND SUPERCEDES ANY CONTRARY INFORMATION CONTAINED IN, THE SECTION IN THE
PROSPECTUS ENTITLED "DESCRIPTION OF THE FUNDS __ MANAGEMENT POLICIES."
BORROWING MONEY __ As a fundamental policy, each LONGER TERM FUND is
permitted to borrow to the extent permitted under the Investment Company Act of
1940. However, each LONGER TERM FUND currently intends to borrow money only for
temporary or emer gency (not
(CONTINUED ON REVERSE SIDE)
leveraging) purposes, in an amount up to 15% of the value of such Fund's
respective total assets (including the amount borrowed) valued at the lesser
of cost or market, less liabilities (not including the amount borrowed) at the
time the borrowing is made. As a Fundamental policy, the MONEY MARKET FUND is
permitted to borrow money only from banks for temporary or emergency (not
leveraging) purposes, in an amount up to 15% of the value of the Fund's
respective total assets (including the amount b orrowed) valued at the lesser
of cost or market, less liability (not including the amount borrowed) at the
time the borrowing is made. While borrowings exceed 5% of each Fund's total
assets, such Fund will not make any additional investments. NYTEF/stkr080294
August 2, 1994
DREYFUS NEW YORK TAX EXEMPT FUNDS
Supplement to Combined Statement of Additional Information
Dated July 25, 1994
At a meeting of each Fund shareholders held on August 2, 1994, each
Fund's respective shareholders approved certain new Investment Restrictions
which supersede and replace current Investment Restrictions numbered 2, 3,
and 6 as to the Money Market Fund, and 2 and 10 as to each Longer Term Fund
in the section of the Statement of Additional Information entitled
"Investment Restrictions." Investment Restriction number 2 for each Fund
is a fundamental policy and cannot be changed without approval by the
holders of a majority (as defined in the Investment Company Act of 1940, as
amended (the "Act") of a Fund's outstanding voting shares. Investment
Restrictions numbered 3 and 6 as to the Money Market Fund, and 10 as to
each Longer Term Fund are not fundamental policies and may be changed by
vote of a majority of a Fund's Board members at any time. The Money Market
Fund may not:
2. Borrow money, except from banks for temporary or emergency (not
leveraging) purposes in an amount up to 15% of the value of the Fund's
total assets (including the amount borrowed) based on the lesser of cost or
market, less liabilities (not including the amount borrowed) at the time
the borrowing is made. While borrowings exceed 5% of the value of the
Fund's total assets, the Fund will not make any additional investments.
3. Pledge, mortgage, hypothecate or otherwise encumber its assets,
except to the extent necessary to secure permitted borrowings.
6. Enter into repurchase agreements providing for settlement in more
than seven days after notice or purchase securities which are illiquid
(which securities could include participation interests (including
municipal lease/purchase agreements) that are not subject to the demand
feature described in the Fund's Prospectus and floating and variable rate
demand notes and bonds as to which the Fund cannot exercise the demand
feature described in the Fund's Prospectus on less than seven days' notice
and as to which there is no secondary market) if, in the aggregate, more
than 10% of the value of the Fund's net assets would be so invested.
Each Longer Term Fund may not:
2. Borrow money, except to the extent permitted under the Act. For
purposes of this investment restriction, entering into options, forward
contracts, futures contracts, including those relating to indexes, and
options on futures contracts or indexes shall not constitute borrowing.
10. Pledge, mortgage, hypothecate or otherwise encumber its assets,
except to the extent necessary to secure permitted borrowings and to the
extent related to the deposit of assets in escrow in connection with the
purchase of securities on a when-issued or delayed-delivery basis and
collateral and initial or variation margin arrangements with respect to
options, futures contracts, including those related to indexes, and options
on futures contracts or indexes.
