File No. 33-14295
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 8 [X]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 8 [X]
(Check appropriate box or boxes.)
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
(Exact Name of Registrant as Specified in Charter)
c/o The Dreyfus Corporation
200 Park Avenue, New York, New York 10166
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (212) 922-6000
Daniel C. Maclean III, Esq.
200 Park Avenue
New York, New York 10166
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate
box)
immediately upon filing pursuant to paragraph (b) of Rule 485
----
X on July 25, 1994 pursuant to paragraph (b) of Rule 485
----
60 days after filing pursuant to paragraph (a) of Rule 485
----
on (date) pursuant to paragraph (a) of Rule 485
----
Registrant has registered an indefinite number of shares of its
beneficial interest under the Securities Act of 1933 pursuant to
Section 24(f) of the Investment Company Act of 1940. Registrant's Rule
24f-2 Notice for the fiscal year ended May 31, 1994 was filed on or about
July 20, 1994.
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
Cross-Reference Sheet Pursuant to Rule 495(a)
Items in
Part A of
Form N-1A Caption Page
_________ _______ ____
1 Cover Page Cover
2 Synopsis 2
3 Condensed Financial Information 2
4 General Description of Registrant 5
5 Management of the Fund 17
5(a) Management's Discussion of Fund's Performance *
6 Capital Stock and Other Securities 26, 28
7 Purchase of Securities Being Offered 18
8 Redemption or Repurchase 23
9 Pending Legal Proceedings *
Items in
Part B of
Form N-1A
- ---------
10 Cover Page Cover
11 Table of Contents Cover
12 General Information and History *
13 Investment Objectives and Policies B-2
14 Management of the Fund B-12
15 Control Persons and Principal B-14
Holders of Securities
16 Investment Advisory and Other B-15
Services
_____________________________________
NOTE: * Omitted since answer is negative or inapplicable.
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
Cross-Reference Sheet Pursuant to Rule 495(a) (continued)
Items in
Part B of
Form N-1A Caption Page
_________ _______ _____
17 Brokerage Allocation B-27
18 Capital Stock and Other Securities B-25
19 Purchase, Redemption and Pricing B-18, B-20,
of Securities Being Offered B-25
20 Tax Status *
21 Underwriters B-18
22 Calculations of Performance Data B-18
23 Financial Statements B-53
Items in
Part C of
Form N-1A
_________
24 Financial Statements and Exhibits C-1
25 Persons Controlled by or Under C-4
Common Control with Registrant
26 Number of Holders of Securities C-4
27 Indemnification C-4
28 Business and Other Connections of C-5
Investment Adviser
29 Principal Underwriters C-32
30 Location of Accounts and Records C-40
31 Management Services C-40
32 Undertakings C-40
_____________________________________
NOTE: * Omitted since answer is negative or inapplicable.
FOR USE BY BANKS ONLY
July 25, 1994
DREYFUS NEW YORK TAX EXEMPT FUNDS
SUPPLEMENT TO COMBINED PROSPECTUS
DATED JULY 25, 1994
All mutual fund shares involve certain investment risks, including
the possible loss of principal.
NYTEF/stkr072594IST
July 25, 1994
DREYFUS NEW YORK TAX EXEMPT FUNDS
SUPPLEMENT TO COMBINED PROSPECTUS
DATED JULY 25, 1994
The following information supplements and should be read in conjunction with
the section of the Fund's Prospectus entitled "Management of the Fund."
The Fund's manager, The Dreyfus Corporation ("Dreyfus"), has entered into an
Agreement and Plan of Merger (the "Merger Agreement") providing for the merger
of Dreyfus with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that Dreyfus will be a direct subsidiary
of Mellon Bank, N.A. Closing of this merger is subject to a number of
contingencies, including receipt of certain regulatory approvals and approvals
of the stockholders of Dreyfus and of Mellon. The merger is expected to occur in
August 1994, but could occur significantly later.
As a result of regulatory requirements and the terms of the Merger
Agreement, Dreyfus will seek various approvals from the Fund's shareholders
before completion of the merger. Proxy materials, approved by the Fund's Board,
recently have been mai led to Fund shareholders.
The following information supplements and should be read in conjunction with
the section of the Fund's Prospectus entitled "Performance Information."
From time to time advertising materials for the Fund also may refer to Value
Line Mutual Fund Survey company ratings and related analyses supporting the
rating.
NYTEF/stkr072594
- --------------------------------------------------------------------------
COMBINED PROSPECTUS JULY 25, 1994
DREYFUS NEW YORK TAX EXEMPT FUNDS
- ---------------------------------------------------------------------------
OVERVIEW
Each of Dreyfus New York Tax Exempt Money Market Fund, Dreyfus New
York Tax Exempt Intermediate Bond Fund and Dreyfus New York Tax Exempt
Bond Fund, Inc. (each, a "Fund" and collectively, the "Funds") is an open-
end, non-diversified, management investment company, known as a mutual
fund. The goal of each Fund is to provide you with as high a level of
current income exempt from Federal, New York State and New York City
income taxes as is consistent with the preservation of capital and, for the
money market fund only, the maintenance of liquidity. Each Fund pursues
its objective by investing in a portfolio of New York Municipal Obligations.
The Funds differ in average portfolio maturity and quality, which in turn
affects their level of income and degree of share price fluctuation.
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND (the "MONEY MARKET
FUND") is a money market fund that seeks to maintain a stable share price
of $1.00. AN INVESTMENT IN THE MONEY MARKET FUND iS NEITHER INSURED
NOR GUARANTEED BY THE U.S. GOVERNMENT. THERE CAN BE NO ASSURANCE
THAT THE MONEY MARKET FUND WILL BE ABLE TO MAINTAIN A STABLE NET
ASSET VALUE OF $1.00 PER SHARE.
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND (the
"INTERMEDIATE BOND FUND") seeks to provide you with a higher level of
tax-free income than the Money Market Fund, and greater price stability
than the Bond Fund. The dollar-weighted average maturity of its portfolio
ranges between three and ten years.
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC. (the "BOND FUND") seeks
to provide you with a higher level of tax-free income than the
Intermediate Bond Fund. Its price per share should be expected to
fluctuate more than the Intermediate Bond Fund's price per share. Its
portfolio investments are not limited by maturity.
EACH FUND IS A SEPARATE ENTITY WITH A SEPARATE PORTFOLIO. THE
OPERATIONS AND RESULTS OF ONE FUND ARE UNRELATED TO THOSE OF EACH
OTHER FUND. THIS COMBINED PROSPECTUS HAS BEEN PREPARED FOR YOUR
CONVENIENCE TO PROVIDE YOU THE OPPORTUNITY TO CONSIDER THREE
INVESTMENT CHOICES IN ONE DOCUMENT.
You can invest, reinvest or redeem shares at any time without charge or
penalty imposed by your Fund.
Each Fund provides free redemption checks, which you can use in
amounts of $500 or more for cash or to pay bills. You continue to earn
income on the amount of the check until it clears. You can purchase or
redeem shares by telephone using Dreyfus TELETRANSFER.
The Dreyfus Corporation professionally manages each Fund's portfolio.
The INTERMEDIATE BOND FUND bears certain costs of advertising,
administration and/or distribution pursuant to a separate plan adopted in
accordance with Rule 12b-1 under the Investment Company Act of 1940,
and the BOND FUND and the MONEY MARKET FUND bear certain allocated
expenses for shareholder servicing pursuant to separate plans.
This Prospectus sets forth concisely information about each Fund that
you should know before investing. It should be read and retained for future
reference.
Part B (also known as the Statement of Additional Information), dated
July 25, 1994, which may be revised from time to time, provides a further
discussion of certain areas in this Prospectus and other matters which
may be of interest to some investors. It has been filed with the Securities
and Exchange Commission and is incorporated herein by reference. For a
free copy, write to one of the Funds at 144 Glenn Curtiss Boulevard,
Uniondale, New York 11556-0144, or call 1-800-645-6561. When
telephoning, ask for Operator 666.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, ANY BANK, AND ARE NOT FEDERALLY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD, OR ANY OTHER AGENCY. THE NET ASSET VALUE OF BOND
MUTUAL FUNDS WILL FLUCTUATE FROM TIME TO TIME.
- --------------------------------------------------------------------------
TABLE OF CONTENTS
PAGE PAGE
ANNUAL FUND OPERATING EXPENSES..... 2 SHAREHOLDER SERVICES....... 21
CONDENSED FINANCIAL INFORMATION.... 2 HOW TO REDEEM SHARES....... 24
PERFORMANCE INFORMATION............ 4 SERVICE PLAN AND SHAREHOLDER
SERVICES PLANS............ 27
DESCRIPTION OF THE FUNDS........... 5 DIVIDENDS, DISTRIBUTIONS
AND TAXES................. 28
MANAGEMENT OF THE FUNDS............ 18 GENERAL INFORMATION........ 29
HOW TO BUY SHARES.................. 19
- -------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------
<TABLE>
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average daily net assets)
MONEY INTERM.
MARKET BOND BOND
FUND FUND FUND
-------- ------- ------
<S> <C> <C> <C>
Management Fees........................................ .50% .60% .60%
12b-1 Fees(distribution and servicing)................. __ .25% __
Other Expenses......................................... .18% .12% .11%
Total Fund Operating Expenses.......................... .68% .97% .71%
</TABLE>
<TABLE>
EXAMPLE:
The following example illustrates the expenses you would pay on a
$1,000 investment in each Fund,
assuming (1) 5% annual return and (2) redemption at the end of each
period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------- ------- -------- --------
<S> <C> <C> <C> <C>
MONEY MARKET FUND $ 7 $ 22 $ 38 $ 85
INTERMEDIATE BOND FUND $10 $ 31 $ 54 $119
BOND FUND $ 7 $ 23 $ 40 $ 88
</TABLE>
THE AMOUNTS LISTED IN THE EXAMPLE SHOULD NOT BE CONSIDERED AS
REPRESENTATIVE OF PAST OR FUTURE EXPENSES AND ACTUAL EXPENSES
MAY BE GREATER OR LESS THAN THOSE INDICATED. MOREOVER, WHILE THE
EXAMPLE ASSUMES A 5% ANNUAL RETURN, EACH FUND'S ACTUAL
PERFORMANCE WILL VARY AND MAY RESULT IN AN ACTUAL RETURN GREATER
OR LESS THAN 5%.
The purpose of the foregoing table is to assist you in understanding the
various costs and expenses borne by a Fund, and therefore indirectly by
investors, the payment of which will reduce investors' returns on an
annual basis. Long-term investors in the INTERMEDIATE BOND FUND could
pay more in 12b-1 fees than the economic equivalent of paying a front-end
sales charge. The information in the foregoing table does not reflect any
fee waivers or expense reimbursement arrangements that may be in
effect. Certain Service Agents (as defined below) may charge their clients
directly for effecting transactions in Fund shares; such fees are not
reflected in the foregoing table. See "Management of the Funds" and, as
applicable, "Service Plan and Shareholder Services Plans."
CONDENSED FINANCIAL INFORMATION
The information in the following tables has been audited by Ernst &
Young, each Fund's independent auditors, whose reports thereon appear in
the Statement of Additional Information. Further financial data and
related notes are included in the Statement of Additional Information,
available upon request.
FINANCIAL HIGHLIGHTS
MONEY MARKET FUND __ Contained below is per share operating
performance data for a share of beneficial interest outstanding, total
investment return, ratios to average net assets and other supplemental
data for each year indicated. This information has been derived from
information provided in the MONEY MARKET FUND'S financial statements.
<TABLE>
YEAR ENDED MAY 31,
-------------------------------------------------------------------------
1988(1) 1989 1990 1991 1992 1993 1994
------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of year......... $1.0000 $1.0002 $1.0001 $ .9999 $ .9999 $ .9999 $1.0000
------- ------- ------- ------- --------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Investment income_net...................... .0421 .0498 .0522 .0458 .0321 .0186 .0168
Net realized and unrealized gain (loss)
on investments............................ .0002 (.0001) (.0002) __ __ .0001 (.0001)
------- ------- ------- ------- --------- -------- --------
TOTAL INCOME FROM INVESTMENT OPERATIONS..... .0423 .0497 .0520 .0458 .0321 .0187 .0167
------- ------- ------- ------- --------- -------- --------
DISTRIBUTIONS:
Dividends from investment income_net......... (.0421) (.0498) (.0522) (.0458) (.0321) (.0186) (.0168)
------- ------- ------- ------- --------- -------- --------
Net asset value, end of year.......... $1.0002 $1.0001 $ .9999 $ .9999 $ .9999 $1.0000 $ .9999
======= ======= ======= ======== ======== ======= ========
TOTAL INVESTMENT RETURN 4.38%(2) 5.10% 5.35% 4.68% 3.26% 1.87% 1.69%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets....... .24%(2) .58% .64% .61% .64% .67% .68%
Ratio of net investment income to
average net assets........................... 4.32%(2) 5.00% 5.21% 4.59% 3.22% 1.86% 1.68%
Decrease reflected in above expense ratios due to
undertakings by The Dreyfus Corporation....... .43%(2) .03% __ __ __ __ __
====== ======= ===== ======= ====== ====== ======
Net Assets, end of year (000's omitted)....... $385,931 $444,491 $539,472 $478,040 $418,763 $379,816 $343,964
</TABLE>
- -----------------
(1)From June 9, 1987 (commencement of operations) to May 31, 1988.
(2)Annualized basis.
Page 2
FINANCIAL HIGHLIGHTS
INTERMEDIATE BOND FUND __ Contained below is per share operating
performance data for a share of beneficial interest outstanding, total
investment return, ratios to average net assets and other supplemental
data for each year indicated. This information has been derived from
information provided in the INTERMEDIATE BOND FUND'S financial
statements.
<TABLE>
YEAR ENDED MAY 31,
-------------------------------------------------------------------------
1988(1) 1989 1990 1991 1992 1993 1994
------ ------ ------ ------ ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of year........... $16.50 $16.19 $16.53 $16.41 $16.73 $17.22 $18.06
------- ------- ------- ------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Investment income_net........................ 1.02 1.10 1.11 1.07 1.01 .94 .88
Net realized and unrealized gain (loss)
on investments.............................. (.31) .34 (.12) .38 .57 .94 (.31)
------- ------- ------- ------- ------- ------- ------
TOTAL INCOME FROM INVESTMENT OPERATIONS..... .71 1.44 .99 1.45 1.58 1.88 .57
------- ------- ------- ------- ------- ------- ------
DISTRIBUTIONS:
Dividends from investment income_net......... (1.02) (1.10) (1.11) (1.07) (1.01) (.93) (.89)
Dividends from net realized gain on investments... __ __ __ (.06) (.08) (.11) (.03)
------- ------- ------- ------- ------- ------- ------
TOTAL DISTRIBUTIONS................. (1.02) (1.10) (1.11) (1.13) (1.09) (1.04) (.92)
------- ------- ------- ------- ------- ------- ------
Net asset value, end of year......... $16.19 $16.53 $16.41 $16.73 $17.22 $18.06 $17.71
====== ======= ====== ======= ======= ====== ======
TOTAL INVESTMENT RETURN 4.63%(2) 9.25% 6.19% 9.13% 9.72% 11.22% 3.11%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets..... __ .24% .30% .60% .85% .85% .89%
Ratio of net investment income to
average net assets......................... 6.58%(2) 6.80% 6.75% 6.48% 5.95% 5.25% 4.81%
Decrease reflected in above expense ratios due to undertakings
by The Dreyfus Corporation (limited to the expense
limitation provision of the Management Agreement)..... 1.50%(2) 1.10% .84% .44% .18% .15% .08%
========== ======= ====== ======= ======= ====== ======
Portfolio Turnover Rate................................ 1.47%(3) 6.99% 37.97% 56.43% 28.51% 17.05% 20.19%
Net Assets, end of year (000's omitted)........ $25,073 $57,918 $93,572 $112,868 $173,835 $318,139 $392,143
- ---------------------------------
</TABLE>
(1)From June 12, 1987 (commencement of operations) to May 31, 1988.
(2)Annualized basis.
(3)Not annualized.
FINANCIAL HIGHLIGHTS
BOND FUND __ Contained below is per share operating performance data for
a share of common stock outstanding, total investment return, ratios to
average net assets and other supplemental data for each year indicated.
This information has been derived from information provided in the BOND
FUND'S financial statements.
<TABLE>
YEAR ENDED MAY 31,
-------------------------------------------------------------------------------------
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of year... $12.41 $14.10 $15.05 $14.73 $14.41 $14.92 $14.65 $14.89 $15.36 $16.06
------ ------ ------ ------ ------ ------ ------ ------ ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Investment income_net................ 1.16 1.15 1.10 1.08 1.08 1.06 1.04 1.01 .95 .88
Net realized and unrealized gain
(loss) on investments.............. 1.69 .95 (.32) (.32) .51 (.27) .24 .47 .92 (.62)
------ ------ ------ ------ ------ ------ ------ ------ ------- -------
TOTAL INCOME FROM
INVESTMENT OPERATIONS............. 2.85 2.10 .78 .76 1.59 .79 1.28 1.48 1.87 .26
------ ------ ------ ------ ------ ------ ------ ------ ------- -------
DISTRIBUTIONS:
Dividends from investment
income_net........................ (1.16) (1.15) (1.10) (1.08) (1.08) (1.06) (1.04) (1.01) (.95) (.89)
Dividends from net realized
gain on investments............... __ __ __ __ __ __ __ __ (.22) (.37)
------ ------ ------ ------ ------ ------ ------ ------ ------- -------
TOTAL DISTRIBUTIONS............... (1.16) (1.15) (1.10) (1.08) (1.08) (1.06) (1.04) (1.01) (1.17) (1.26)
------ ------ ------ ------ ------ ------ ------ ------ ------- -------
Net asset value, end of year....... $14.10 $15.05 $14.73 $14.41 $14.92 $14.65 $14.89 $15.36 $16.06 $15.06
====== ====== ====== ====== ======= ====== ====== ====== ====== =======
TOTAL INVESTMENT RETURN 23.97% 15.34% 4.99% 5.44% 11.39% 5.43% 9.06% 10.23% 12.63% 1.42%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets.............. .76% .71% .71% .72% .69% .70% .70% .69% .70% .71%
Ratio of net investment income to
average net assets............. 8.74% 7.83% 7.04% 7.41% 7.34% 7.12% 7.08% 6.69% 6.03% 5.49%
Portfolio Turnover Rate......... 28.51% 14.84% 37.54% 56.96% 37.83% 31.22% 26.19% 40.05% 51.20% 35.66%
Net Assets, end of year
(000's omitted).. $652,959 $1,245,440 $1,537,449 $1,463,109 $1,643,80 $1,681,206 $1,752,334 $1,897,988 $2,098,253 $1,941,233
</TABLE>
Page 3
INTERMEDIATE BOND FUND AND BOND FUND ONLY __ Further information
about the performance of each of the INTERMEDIATE BOND FUND AND BOND
FUND (collectively, the "LONGER TERM FUNDS") is contained in such Fund's
respective annual report, each of which may be obtained without charge by
writing to the address or calling the number set forth on the cover page of
this Prospectus.
PERFORMANCE INFORMATION
MONEY MARKET FUND - From time to time, the MONEY MARKET FUND
advertises its yield and effective yield. Both yield figures are based on
historical earnings and are not intended to indicate future performance. It
can be expected that these yields will fluctuate substantially. The yield of
the MONEY MARKET FUND refers to the income generated by an investment
in the Fund over a seven-day period (which period will be stated in the
advertisement). This income is then annualized. That is, the amount of
income generated by the investment during that week is assumed to be
generated each week over a 52-week period and is shown as a percentage
of the investment. The effective yield is calculated similarly, but, when
annualized, the income earned by an investment in the Fund is assumed to
be reinvested. The effective yield will be slightly higher than the yield
because of the compounding effect of this assumed reinvestment. The
Fund's yield and effective yield may reflect absorbed expenses pursuant to
any undertakings that may be in effect. See "Management of the Funds."
Tax equivalent yield is calculated by determining the pre-tax yield
which, after being taxed at a stated rate, would be equivalent to a stated
current yield as described above.
Yield information is useful in reviewing the MONEY MARKET FUND'S
performance, but because yields will fluctuate, under certain conditions
such information may not provide a basis for comparison with domestic
bank deposits, other investments which pay a fixed yield for a stated
period of time, or other investment companies which may use a different
method of computing yield.
Comparative performance information may be used from time to time in
advertising or marketing the Fund's shares, including data from Lipper
Analytical Services, Inc., Bank Rate Monitor trademark, N. Palm Beach, Fla.
33408, IBC/Donoghue's Money Fund Report, Morningstar, Inc. and other
industry publications.
INTERMEDIATE BOND FUND AND BOND FUND - For purposes of advertising,
performance of the LONGER TERM FUNDS may be calculated on several
bases, including current yield, tax equivalent yield, average annual total
return and/or total return.
Current yield of a LONGER TERM FUND refers to its annualized net
investment income per share over a 30-day period, expressed as a
percentage of the net asset value per share at the end of the period. For
purposes of calculating current yield, the amount of net investment
income per share during that 30-day period, computed in accordance with
regulatory requirements, is compounded by assuming it is reinvested at a
constant rate over a six-month period. An identical result is then assumed
to have occurred during a second six-month period which, when added to
the result for the first six months, provides an "annualized" yield for an
entire one-year period. Calculations of a LONGER TERM FUND'S current
yield may reflect absorbed expenses pursuant to any undertakings that
may be in effect. See "Management of the Funds."
Tax equivalent yield is also calculated by determining the pre-tax yield
which, after being taxed at a stated rate, would be equivalent to a stated
current yield calculated as described above.
Average annual total return for each LONGER TERM FUND is calculated
pursuant to a standardized formula which assumes that an investment in
such Fund was purchased with an initial payment of $1,000 and that the
investment was redeemed at the end of a stated period of time, after
giving effect to the reinvestment of dividends and distributions during the
period. The return is expressed as a percentage rate which, if applied on a
compounded annual basis, would result in the redeemable value of the
investment at the end of the period. Advertisements of a LONGER TERM
FUND'S performance will include its average annual total return for one,
five and ten year periods, or for shorter time periods depending upon the
length of time during which it has operated.
Page 4
Total return is computed on a per share basis and assumes the
reinvestment of dividends and distributions. Total return generally is
expressed as a percentage rate which is calculated by combining the
income and principal changes for a specified period and dividing by the net
asset value per share at the beginning of the period. Advertisements may
include the percentage rate of total return or may include the value of a
hypothetical investment at the end of the period which assumes the
application of the percentage rate of total return.
Comparative performance information may be used from time to time in
advertising or marketing shares of the LONGER TERM FUNDS, including data
from CDA Investment Technologies, Inc., Lipper Analytical Services, Inc.,
Moody's Bond Survey Bond Index, Lehman Brothers Municipal Bond Index,
Morningstar, Inc. and other industry publications.
ALL FUNDS - Performance will vary from time to time and past results are
not necessarily representative of future results. You should remember
that performance is a function of portfolio management in selecting the
type and quality of portfolio securities and is affected by operating
expenses. Performance information, such as that described above, may not
provide a basis for comparison with other investments or other
investment companies using a different method of calculating
performance.
DESCRIPTION OF THE FUNDS
INVESTMENT OBJECTIVE - The goal of each of the Funds is to provide you
with as high a level of current income exempt from Federal, New York
State and New York City income taxes as is consistent with the
preservation of capital and, for the MONEY MARKET FUND only, the
maintenance of liquidity. To accomplish this goal, each Fund invests
primarily in the debt securities of the State of New York, its political
subdivisions, authorities and corporations, the interest from which is, in
the opinion of bond counsel to the issuer, exempt from Federal, New York
State and New York City income taxes (collectively, "New York Municipal
Obligations"). To the extent acceptable New York Municipal Obligations are
at any time unavailable for investment by any Fund, such Fund will invest
temporarily in other debt securities the interest from which is, in the
opinion of bond counsel to the issuer, exempt from Federal, but not New
York State and New York City, income tax. The MONEY MARKET FUND invests
primarily in high-quality, short-term instruments. These securities may
not earn as high a level of current income as long-term or lower quality
securities which generally have less liquidity, greater market risk and
more fluctuation in market value. The dollar-weighted average maturity of
the INTERMEDIATE BOND FUND'S portfolio ranges between three and ten
years. The BOND FUND invests without regard to maturity. Each Fund's
investment objective cannot be changed without approval by the holders of
a majority (as defined in the Investment Company Act of 1940) of its
outstanding voting shares. There can be no assurance that a Fund's
investment objective will be achieved.
MUNICIPAL OBLIGATIONS - Debt securities the interest from which is, in
the opinion of bond counsel to the issuer, exempt from Federal income tax
("Municipal Obligations") generally include debt obligations issued to
obtain funds for various public purposes as well as certain industrial
development bonds issued by or on behalf of public authorities. Municipal
Obligations are classified as general obligation bonds, revenue bonds or
notes. General obligation bonds are secured by the issuer's pledge of its
faith, credit and taxing power for the payment of principal and interest.
Revenue bonds are payable from the revenue derived from a particular
facility or class of facilities or, in some cases, from the proceeds of a
special excise or other specific revenue source, but not from the general
taxing power. Tax exempt industrial development bonds, in most cases, are
revenue bonds that generally do not carry the pledge of the credit of the
issuing municipality, but generally are guaranteed by the corporate entity
on whose behalf they are issued. Notes are short-term instruments which
are obligations of the issuing municipalities or agencies and are sold in
anticipation of a bond sale, collection of taxes or receipt of other
revenues. Municipal Obligations include municipal lease/purchase
agreements which are similar to installment purchase contracts for
property or equipment issued by municipalities. Municipal Obligations
Page 5
bear fixed, floating or variable rates of interest. The LONGER TERM FUNDS may
purchase Municipal Obligations with interest rates that are determined by
formulas under which the rate will change directly or inversely to changes
in interest rates or an index, or multiples thereof, in many cases subject
to a maximum and minimum. Certain Municipal Obligations purchased by
the LONGER TERM FUNDS are subject to redemption at a date earlier than
their stated maturity pursuant to call options, which may be separated
from the related Municipal Obligation and purchased and sold separately.
MANAGEMENT POLICIES - It is a fundamental policy of each Fund that it
will invest at least 80% of the value of its respective net assets (except
when maintaining a temporary defensive position) in Municipal
Obligations. Additionally, with respect to each LONGER TERM FUND, at
least 65% of the value of its net assets (except when maintaining a
temporary defensive position) will be invested in bonds and debentures.
Generally, at least 65% of the value of each Fund's net assets will be
invested in New York Municipal Obligations and the remainder may be
invested in securities that are not New York Municipal Obligations and
therefore may be subject to New York State and New York City income
taxes. See "Risk Factors-Investing in New York Municipal Obligations"
below, and "Dividends, Distributions and Taxes."
MONEY MARKET FUND - The MONEY MARKET FUND seeks to maintain a net
asset value of $1.00 per share for purchases and redemptions. To do so,
the MONEY MARKET FUND uses the amortized cost method of valuing its
securities pursuant to Rule 2a-7 under the Investment Company Act of
1940, certain requirements of which are summarized as follows. In
accordance with Rule 2a-7, the MONEY MARKET FUND will maintain a
dollar-weighted average portfolio maturity of 90 days or less, purchase
only instruments having remaining maturities of 13 months or less and
invest only in U.S. dollar denominated securities determined in accordance
with procedures established by the Fund's Board to present minimal credit
risks and 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 only
by one such organization) or, if unrated, are of comparable quality as
determined in accordance with procedures established by its Board. The
nationally recognized statistical rating organizations currently rating
investments of the type the Fund may purchase are Moody's Investors
Service, Inc. ("Moody's"), Standard & Poor's Corporation ("S&P") and Fitch
Investors Service, Inc. ("Fitch") and their rating criteria are described in
Appendix B to the Statement of Additional Information. For further
information regarding the amortized cost method of valuing securities,
see "Determination of Net Asset Value" in the Statement of Additional
Information. There can be no assurance that the MONEY MARKET FUND will
be able to maintain a stable net asset value of $1.00 per share.
INTERMEDIATE BOND FUND AND BOND FUND - As to each LONGER TERM
FUND, at least 80% of the value of its net assets must consist of Municipal
Obligations which, in the case of bonds, are rated no lower than Baa by
Moody's or BBB by S&P or Fitch. Each LONGER TERM FUND may invest up to
20% of the value of its net assets in Municipal Obligations which, in the
case of bonds, are rated lower than Baa by Moody's and BBB by S&P and
Fitch and as low as the lowest rating assigned by Moody's, S&P or Fitch.
Each LONGER TERM FUND may invest in short-term Municipal Obligations
which are rated in the two highest rating categories by Moody's, S&P or
Fitch. See "Appendix B" in the Statement of Additional Information.
Municipal Obligations rated BBB by S&P or Fitch or Baa by Moody's are
considered investment grade obligations; those rated BBB by S&P and Fitch
are regarded as having an adequate capacity to pay principal and interest,
while those rated Baa by Moody's are considered medium grade obligations
which lack outstanding investment characteristics and have speculative
characteristics. Investments rated Ba or lower by Moody's and BB or lower
by S&P and Fitch ordinarily provide higher yields but involve greater risk
because of their speculative characteristics. Each LONGER TERM FUND may
invest in Municipal Obligations rated C by Moody's or D by S&P or Fitch,
which is the lowest rating assigned by such rating organizations and
indicates that the Municipal
Page 6
Obligation is in default and interest and/or
repayment of principal is in arrears. See "Risk Factors-Lower Rated
Bonds" below for a further discussion of certain risks. Each LONGER TERM
FUND also may invest in securities which, while not rated, are determined
by The Dreyfus Corporation to be of comparable quality to the rated
securities in which such LONGER TERM FUND may invest; for the purpose of
the 80% requirement described above, such unrated securities shall be
deemed to have the rating so determined. Each LONGER TERM FUND also may
invest in Taxable Investments of the quality described below.
Each LONGER TERM FUND may invest in zero coupon securities which are
debt securities issued or sold at a discount from their face value which do
not entitle the holder to any periodic payment of interest prior to
maturity or a specified redemption date (or cash payment date). The
amount of the discount varies depending on the time remaining until
maturity or cash payment date, prevailing interest rates, liquidity of the
security and perceived credit quality of the issuer. Zero coupon securities
also may take the form of debt securities that have been stripped of their
unmatured interest coupons, the coupons themselves and receipts or
certificates representing interest in such stripped debt obligations and
coupons. The market prices of zero coupon securities generally are more
volatile than the market prices of interest-bearing securities and are
likely to respond to a greater degree to changes in interest rates than
interest-bearing securities having similar maturities and credit qualities.
Each LONGER TERM FUND may invest up to 5% of its assets in zero coupon
bonds which are rated below investment grade. See "Risk Factors-Lower
Rated Bonds" and "Other Investment Considerations" below, and
"Investment Objective and Management Policies-Risk Factors-Lower
Rated Bonds" and "Dividends, Distributions and Taxes" in the Statement of
Additional Information.
Each LONGER TERM FUND may purchase custodial receipts representing
the right to receive certain future principal and interest payments on
Municipal Obligations which underlie the custodial receipts. A number of
different arrangements are possible. In a typical custodial receipt
arrangement, an issuer or a third party owner of Municipal Obligations
deposits such obligations with a custodian in exchange for two classes of
custodial receipts. The two classes have different characteristics, but, in
each case, payments on the two classes are based on payments received on
the underlying Municipal Obligations. One class has the characteristics of
a typical auction rate security, where at specified intervals its interest
rate is adjusted, and ownership changes, based on an auction mechanism.
This class's interest rate generally is expected to be below the coupon
rate of the underlying Municipal Obligations and generally is at a level
comparable to that of a Municipal Obligation of similar quality and having
a maturity equal to the period between interest rate adjustments. The
second class bears interest at a rate that exceeds the interest rate
typically borne by a security of comparable quality and maturity; this rate
also is adjusted, but in this case inversely to changes in the rate of
interest of the first class. If the interest rate on the first class exceeds
the coupon rate of the underlying Municipal Obligations, its interest rate
will exceed the rate paid on the second class. In no event will the
aggregate interest paid with respect to the two classes exceed the
interest paid by the underlying Municipal Obligations. The value of the
second class and similar securities should be expected to fluctuate more
than the value of a Municipal Obligation of comparable quality and
maturity and their purchase by a LONGER TERM FUND should increase the
volatility of its net asset value and, thus, its price per share. These
custodial receipts are sold in private placements. Each LONGER TERM FUND
also may purchase directly from issuers, and not in a private placement,
Municipal Obligations having characteristics similar to custodial receipts.
These securities may be issued as part of a multi-class offering and the
interest rate on certain classes may be subject to a cap or a floor.
Each LONGER TERM FUND may invest up to 15% of the value of its net
assets in securities as to which a liquid trading market does not exist,
provided such investments are consistent with the Fund's investment
objective. Such securities may include securities that are not readily
marketable, such as certain securities that are subject to legal or
contractual restrictions on resale and repurchase agreements providing
for settlement in more than seven days after
Page 7
notice. However, if a
substantial market of qualified institutional buyers develops pursuant to
Rule 144A under the Securities Act of 1933, as amended, for certain of
these securities held by a LONGER TERM FUND, such Fund intends to treat
such securities as liquid securities in accordance with procedures
approved by the Fund's Board. Because it is not possible to predict with
assurance how the market for restricted securities pursuant to Rule 144A
will develop, each LONGER TERM FUND'S Board has directed The Dreyfus
Corporation to monitor carefully the Fund's investments in such securities
with particular regard to trading activity, availability or reliable price
information and other relevant information. To the extent that for a period
of time, qualified institutional buyers cease purchasing restricted
securities pursuant to Rule 144A, a LONGER TERM FUND'S investing in such
securities may have the effect of increasing the level of illiquidity in its
portfolio during such period.
ALL FUNDS (EXCEPT AS INDICATED BELOW) - Each Fund may invest more
than 25% of the value of its total assets in Municipal Obligations which
are related in such a way that an economic, business or political
development or change affecting one such security also would affect the
other securities; for example, securities the interest upon which is paid
from revenues of similar types of projects. As a result, each Fund may be
subject to greater risk as compared to funds that do not follow this
practice.
From time to time, a Fund may invest more than 25% of the value of its
total assets in industrial development bonds which, although issued by
industrial development authorities, may be backed only by the assets and
revenues of the non-governmental users. Interest on Municipal Obligations
(including certain industrial development bonds) which are specified
private activity bonds, as defined in the Internal Revenue Code of 1986, as
amended (the "Code"), issued after August 7, 1986, while exempt from
Federal income tax, is a preference item for the purpose of the alternative
minimum tax. Where a regulated investment company receives such
interest, a proportionate share of any exempt-interest dividend paid by
the investment company may be treated as such a preference item to
shareholders. No Fund will invest more than 20% of the value of its net
assets in Municipal Obligations the interest from which gives rise to a
preference item for the purpose of the alternative minimum tax and,
except for temporary defensive purposes, in other investments subject to
Federal income tax.
Each Fund may purchase floating or variable rate demand notes, which
are tax exempt obligations ordinarily having stated maturities in excess
of 13 months, but which permit the holder to demand payment of principal
at any time, or at specified intervals, which for the MONEY MARKET FUND
will not exceed 13 months, and in each case will be upon not more than 30
days' notice. Variable rate demand notes include master demand notes
which are obligations that permit the Fund to invest fluctuating amounts,
which may change daily without penalty, pursuant to direct arrangements
between the Fund, as lender, and the borrower. The interest rates on these
obligations fluctuate from time to time. Frequently, such obligations are
secured by letters of credit or other credit support arrangements provided
by banks. Use of letters of credit or other credit support arrangements
will not adversely affect the tax exempt status of these obligations.
Because these obligations are direct lending arrangements between the
lender and borrower, it is not contemplated that such instruments will
generally be traded, and there generally is no established secondary
market for these obligations, although they are redeemable at face value.
Accordingly, where these obligations are not secured by letters of credit
or other credit support arrangements, the Fund's right to redeem is
dependent on the ability of the borrower to pay principal and interest on
demand. Each obligation purchased by a Fund will meet the quality criteria
established for its purchase of Municipal Obligations. The Dreyfus
Corporation, on behalf of each Fund, will consider on an ongoing basis the
creditworthiness of the issuers of the floating and variable rate demand
obligations in the Fund's portfolio. No Fund will invest more than 15%
(10% in the case of the MONEY MARKET FUND) of the value of its respective
net assets in floating or variable rate demand obligations as to which
such Fund cannot exercise the demand feature on not more than seven
days' notice if there is no secondary market available for these
obligations, and in other illiquid securities.
Page 8
Each Fund may purchase from financial institutions participation
interests in Municipal Obligations (such as industrial development bonds
and municipal lease/purchase agreements). A participation interest gives
a Fund an undivided interest in the Municipal Obligation in the proportion
that the respective Fund's participation bears to the total principal
amount of the Municipal Obligation. These instruments may have fixed,
floating or variable rates of interest and, in the case of the MONEY
MARKET FUND, will have remaining maturities of 13 months or less. If the
participation interest is unrated, it will be backed by an irrevocable
letter of credit or guarantee of a bank that the respective Fund's Board
has determined meets the prescribed quality standards for banks set forth
below, or the payment/obligation otherwise will be collateralized by U.S.
Government securities. For certain participation interests, the Fund will
have the right to demand payment, on not more than seven days' notice, for
all or any part of the Fund's participation interest in the Municipal
Obligation, plus accrued interest. As to these instruments, each Fund
intends to exercise its right to demand payment only upon a default under
the terms of the Municipal Obligation, as needed to provide liquidity to
meet redemptions, or to maintain or improve the quality of its investment
portfolio. No Fund will invest more than 15% (10% in the case of the MONEY
MARKET FUND) of the value of its net assets in participation interests
that do not have this demand feature, and in other illiquid securities.
Each Fund may purchase tender option bonds. A tender option bond is a
Municipal Obligation (generally held pursuant to a custodial arrangement)
having a relatively long maturity and bearing interest at a fixed rate
substantially higher than prevailing short-term tax exempt rates, that has
been coupled with the agreement of a third party, such as a bank, broker-
dealer or other financial institution, pursuant to which such institution
grants the security holders the option, at periodic intervals, to tender
their securities to the institution and receive the face value thereof. As
consideration for providing the option, the financial institution receives
periodic fees equal to the difference between the Municipal Obligation's
fixed coupon rate and the rate, as determined by a remarketing or similar
agent at or near the commencement of such period, that would cause the
securities, coupled with the tender option, to trade at par on the date of
such determination. Thus, after payment of this fee, the security holder
effectively holds a demand obligation that bears interest at the prevailing
short-term tax exempt rate. The Dreyfus Corporation, on behalf of the
Funds, will consider on an ongoing basis the creditworthiness of the
issuer of the underlying Municipal Obligation, of any custodian and of the
third party provider of the tender option. In certain instances and for
certain tender option bonds, the option may be terminable in the event of a
default in payment of principal or interest on the underlying Municipal
Obligations and for other reasons. No Fund will invest more than 15% (10%
in the case of the MONEY MARKET FUND) of the value of its net assets in
securities that are illiquid, which could include tender option bonds as to
which it cannot exercise the tender feature on not more than seven days'
notice if there is no secondary market available for these obligations.
Each Fund may acquire "stand-by commitments" with respect to
Municipal Obligations held in its portfolio. Under a stand-by commitment,
the Fund obligates a broker, dealer or bank to repurchase, at the Fund's
option, specified securities at a specified price and, in this respect,
stand-by commitments are comparable to put options. The exercise of a
stand-by commitment therefore is subject to the ability of the seller to
make payment on demand. Each Fund will acquire stand-by commitments
solely to facilitate portfolio liquidity and does not intend to exercise any
such rights thereunder for trading purposes. Each Fund may pay for stand-
by commitments if such action is deemed necessary, thus increasing to a
degree the cost of the underlying Municipal Obligation and similarly
decreasing such security's yield to investors. The LONGER TERM FUNDS
also may acquire call options on specific Municipal Obligations. A LONGER
TERM FUND generally would purchase these call options to protect it from
the issuer of the related Municipal Obligation redeeming, or other holder
of the call option from calling away, the Municipal Obligation before
maturity. The sale by a LONGER TERM FUND of a call option that it owns on
a specific Municipal Obligation could result in the receipt of taxable
income by the Fund.
Page 9
From time to time, on a temporary basis other than for temporary
defensive purposes (but not to exceed 20% of the value of its net assets)
or for temporary defensive purposes, a Fund may invest in taxable short-
term investments ("Taxable Investments") consisting of: notes to issuers
having, at the time of purchase, a quality rating within the two highest
grades of Moody's, S&P or Fitch; obligations of the U.S. Government, its
agencies or instrumentalities; commercial paper rated not lower than P-2
by Moody's, A-2 by S&P or F-2 by Fitch; certificates of deposit of U.S.
domestic banks, including foreign branches of domestic banks, with assets
of one billion dollars or more; time deposits; bankers' acceptances and
other short-term bank obligations; and repurchase agreements in respect
of any of the foregoing. Dividends paid by a Fund that are attributable to
income earned by the Fund from Taxable Investments will be taxable to
investors. See "Dividends, Distributions and Taxes." Except for temporary
defensive purposes, at no time will more than 20% of the value of a Fund's
net assets be invested in Taxable Investments and Municipal Obligations
the interest from which gives rise to a preference item for the purpose of
the alternative minimum tax. If the MONEY MARKET FUND purchases
Taxable Investments, it will value them using the amortized cost method
and comply with Rule 2a-7 relating to purchases of taxable instruments.
When a Fund has adopted a temporary defensive position, including when
acceptable New York Municipal Obligations are unavailable for investment
by the Fund, in excess of 35% of its net assets may be invested in
securities that are not exempt from New York State and New York City
income taxes. Under normal market conditions, each Fund anticipates that
not more than 5% of the value of its total assets will be invested in any
one category of Taxable Investments. Taxable Investments are more fully
described in the Statement of Additional Information to which reference
hereby is made.
INVESTMENT TECHNIQUES
Each LONGER TERM FUND may employ, among others, the investment
techniques described below. Use of these techniques may give rise to
taxable income. Options and futures transactions involve so-called
"derivative securities."
FUTURES TRANSACTIONS - IN GENERAL - Neither LONGER TERM FUND is a
commodity pool. However, as a substitute for a comparable market
position in the underlying securities and for hedging purposes, each
LONGER TERM FUND may engage in futures and options on futures
transactions as described below.
Each LONGER TERM FUND'S commodities transactions must constitute
bona fide hedging or other permissible transactions pursuant to
regulations promulgated by the Commodity Futures Trading Commission. In
addition, each LONGER TERM FUND may not engage in such transactions if
the sum of the amount of initial margin deposits and premiums paid for
unexpired commodity options, other than for bona fide hedging
transactions, would exceed 5% of the liquidation value of such Fund's
assets, after taking into account unrealized profits and unrealized losses
on such contracts it has entered into; provided, however, that in the case
of an option that is in-the-money at the time of purchase, the in-the-
money amount may be excluded in calculating the 5%. Pursuant to
regulations and/or published positions of the Securities and Exchange
Commission, each LONGER TERM FUND may be required to segregate cash or
high quality money market instruments in connection with its
commodities transactions in an amount generally equal to the value of the
underlying commodity. To the extent the Fund engages in the use of futures
and options on futures for other than bonafide hedging purposes, a LONGER
TERM FUND may be subject to additional risk.
Initially, when purchasing or selling futures contracts each LONGER
TERM FUND will be required to deposit with its custodian in the broker's
name an amount of cash or cash equivalents up to approximately 10% of
the contract amount. This amount is subject to change by the exchange or
board of trade on which the contract is traded and members of such
exchange or board of trade may impose their own higher requirements.
This amount is known as "initial margin" and is in the nature of a
performance bond or good faith deposit on the contract which is returned
to such Fund upon termination of the futures position, assuming all
contractual
Page 10
obligations have been satisfied. Subsequent payments, known
as "variation margin," to and from the broker will be made daily as the
price of the index or securities underlying the futures contract fluctuates,
making the long and short positions in the futures contract more or less
valuable, a process known as "marking-to-market." At any time prior to
the expiration of a futures contract, a Fund may elect to close the position
by taking an opposite position at the then prevailing price, which will
operate to terminate such Fund's existing position in the contract.
Although each LONGER TERM FUND intends to purchase or sell futures
contracts only if there is an active market for such contracts, no
assurance can be given that a liquid market will exist for any particular
contract at any particular time. Many futures exchanges and boards of
trade limit the amount of fluctuation permitted in futures contract prices
during a single trading day. Once the daily limit has been reached in a
particular contract, no trades may be made that day at a price beyond the
limit or trading may be suspended for specified periods during the trading
day. Futures contract prices could move to the limit for several
consecutive trading days with little or no trading, thereby preventing
prompt liquidation of futures positions and potentially subjecting a Fund
to a substantial loss. If it is not possible, or such Fund determines not, to
close a futures position in anticipation of adverse price movements, such
Fund will be required to make daily cash payments of variation margin. In
such circumstances, an increase in the value of the portion of the
portfolio being hedged, if any, may offset partially or completely losses
on the futures contract. However, no assurance can be given that the price
of the securities being hedged will correlate with the price movements in
a futures contract and thus provide an offset to losses on the futures
contract.
In addition, to the extent a LONGER TERM FUND is engaging in a futures
transaction as a hedging device, due to the risk of an imperfect
correlation between securities in such Fund's portfolio that are the
subject of a hedging transaction and the futures contract used as a
hedging device, it is possible that the hedge will not be fully effective in
that, for example, losses on the portfolio securities may be in excess of
gains on the futures contract or losses on the futures contract may be in
excess of gains on the portfolio securities that were the subject of the
hedge. In futures contracts based on indexes, the risk of imperfect
correlation increases as the composition of such Fund's portfolio varies
from the composition of the index. In an effort to compensate for the
imperfect correlation of movements in the price of the securities being
hedged and movements in the price of futures contracts, such Fund may
buy or sell futures contracts in a greater or lesser dollar amount than the
dollar amount of the securities being hedged if the historical volatility of
the futures contract has been less or greater than that of the securities.
Such "over hedging" or "under hedging" may adversely affect a Fund's net
investment results if market movements are not as anticipated when the
hedge is established.
Successful use of futures by each LONGER TERM FUND is also subject to
The Dreyfus Corporation's ability to predict correctly movements in the
direction of the market or interest rates. For example, if a Fund has
hedged against the possibility of a decline in the market adversely
affecting the value of securities held in its portfolio and prices increase
instead, such Fund will lose part or all of the benefit of the increased
value of securities which it has hedged because it will have offsetting
losses in its futures positions. In addition, in such situations, if a Fund
has insufficient cash, it may have to sell securities to meet daily
variation margin requirements. Such sales of securities may, but will not
necessarily, be at increased prices which reflect the rising market. Each
LONGER TERM FUND may have to sell securities at a time when it may be
disadvantageous to do so.
An option on a futures contract gives the purchaser the right, in return
for the premium paid, to assume a position in a futures contract (a long
position if the option is a call and a short position if the option is a put)
at a specified exercise price at any time during the option exercise period.
The writer of the option is required upon exercise to assume an offsetting
futures position (a short position if the option is a call and a long position
if the option is a put). Upon exercise of the option, the assumption of
offsetting futures positions by the writer and holder of the option will be
accompanied by delivery of the accumulated cash balance in the writer's
futures mar-
Page 11
gin account which represents the amount by which the market
price of the futures contract, at exercise, exceeds, in the case of a call, or
is less than, in the case of a put, the exercise price of the option on the
futures contract.
Call options sold by each LONGER TERM FUND with respect to futures
contracts will be covered by, among other things, entering into a long
position in the same contract at a price no higher than the strike price of
the call option, or by ownership of the instruments underlying, or
instruments the prices of which are expected to move relatively
consistently with the instruments underlying, the futures contract. Put
options sold by each LONGER TERM FUND with respect to futures contracts
will be covered when, among other things, cash or liquid securities are
placed in a segregated account to fulfill the obligation undertaken.
Each LONGER TERM FUND may utilize municipal bond index futures to
protect against changes in the market value of the Municipal Obligations
in its portfolio or which it intends to acquire. Municipal bond index
futures contracts are based on an index of long-term Municipal
Obligations. The index assigns relative values to the Municipal Obligations
included in an index, and fluctuates with changes in the market value of
such Municipal Obligations. The contract is an agreement pursuant to
which two parties agree to take or make delivery of an amount of cash
based upon the difference between the value of the index at the close of
the last trading day of the contract and the price at which the index
contract was originally written. The acquisition or sale of a municipal
bond index futures contract enables a Fund to protect its assets from
fluctuations in rates on tax exempt securities without actually buying or
selling such securities.
INTEREST RATE FUTURES CONTRACTS AND OPTIONS ON INTEREST RATE
FUTURES CONTRACTS - Each LONGER TERM FUND may purchase and sell
interest rate futures contracts and options on interest rate futures
contracts as a substitute for a comparable market position and to hedge
against adverse movements in interest rates.
To the extent a LONGER TERM FUND has invested in interest rate futures
contracts or options on interest rate futures contracts as a substitute for
a comparable market position, the Fund will be subject to the investment
risks of having purchased the securities underlying the contract.
Each LONGER TERM FUND may purchase call options on interest rate
futures contracts to hedge against a decline in interest rates and may
purchase put options on interest rate futures contracts to hedge its
portfolio securities against the risk of rising interest rates.
If a Fund has hedged against the possibility of an increase in interest
rates adversely affecting the value of securities held in its portfolio and
rates decrease instead, such Fund will lose part or all of the benefit of
the increased value of the securities which it has hedged because it will
have offsetting losses in its futures positions. In addition, in such
situations, if such Fund has insufficient cash, it may have to sell
securities to meet daily variation margin requirements at a time when it
may be disadvantageous to do so. These sales of securities may, but will
not necessarily, be at increased prices which reflect the decline in
interest rates.
Each LONGER TERM FUND may sell call options on interest rate futures
contracts to partially hedge against declining prices of its portfolio
securities. If the futures price at expiration of the option is below the
exercise price, such Fund will retain the full amount of the option
premium which provides a partial hedge against any decline that may have
occurred in that Fund's portfolio holdings. Each LONGER TERM FUND may
sell put options on interest rate futures contracts to hedge against
increasing prices of the securities which are deliverable upon exercise of
the futures contract. If the futures price at expiration of the option is
higher than the exercise price, such Fund will retain the full amount of the
option premium which provides a partial hedge against any increase in the
price of securities which that Fund intends to purchase. If a put or call
option sold by such Fund is exercised, that Fund will incur a loss which
will be reduced by the amount of the premium it receives. Depending on
the degree of correlation between changes in the value of its portfolio
securities and changes in the value of its futures positions, such Fund's
losses from existing options on futures may to some extent be reduced or
increased by changes in the value of its portfolio securities.
Page 12
Each LONGER TERM FUND also may sell options on interest rate futures
contracts as part of closing purchase transactions to terminate its
options positions. No assurance can be given that such closing
transactions can be effected or that there will be a correlation between
price movements in the options on interest rate futures and price
movements in such Fund's portfolio securities which are the subject of
the hedge. In addition, such Fund's purchase of such options will be based
upon predictions as to anticipated interest rate trends, which could prove
to be inaccurate.
SHORT-SELLING - Each LONGER TERM FUND may make short sales, which
are transactions in which a Fund sells a security it does not own in
anticipation of a decline in the market value of that security. To complete
such a transaction, such Fund must borrow the security to make delivery
to the buyer. That Fund then is obligated to replace the security borrowed
by purchasing it at the market price at the time of replacement. The price
at such time may be more or less than the price at which the security was
sold by such Fund. Until the security is replaced, the Fund is required to
pay to the lender amounts equal to any dividends or interest which accrue
during the period of that loan. To borrow the security, such Fund also may
be required to pay a premium, which would increase the cost of the
security sold. The proceeds of the short sale will be retained by the
broker, to the extent necessary to meet margin requirements, until the
short position is closed out.
Until the LONGER TERM FUND replaces a borrowed security in connection
with a short sale, such Fund will: (a) maintain daily a segregated account,
containing cash or U.S. Government securities, at such a level that (i) the
amount deposited in the account plus the amount deposited with the
broker as collateral will equal the current value of the security sold short
and (ii) the amount deposited in the segregated account plus the amount
deposited with the broker as collateral will not be less than the market
value of the security at the time it was sold short; or (b) otherwise cover
its short position.
A LONGER TERM FUND will incur a loss as a result of the short sale if
the price of the security increases between the date of the short sale and
the date on which such Fund replaces the borrowed security. The LONGER
TERM FUND will realize a gain if the security declines in price between
those dates. This result is the opposite of what one would expect from a
cash purchase of a long position in a security. The amount of any gain will
be decreased, and the amount of any loss increased, by the amount of any
premium or amounts in lieu of dividends or interest the LONGER TERM FUND
may be required to pay in connection with a short sale.
Each LONGER TERM FUND may purchase call options to provide a hedge
against an increase in the price of a security sold short by such Fund.
When a Fund purchases a call option it has to pay a premium to the person
writing the option and a commission to the broker selling the option. If
the option is exercised by that Fund, the premium and the commission paid
may be more than the amount of the brokerage commission charged if the
security were to be purchased directly.
Each LONGER TERM FUND anticipates that the frequency of short sales
will vary substantially in different periods, and it does not intend that
any specified portion of its assets, as a matter of practice, will be
invested in short sales. However, no securities will be sold short if, after
effect is given to any such short sale, the total market value of all
securities sold short would exceed 25% of the value of such Fund's net
assets. Neither LONGER TERM FUND may sell short securities of any single
issuer listed on a national securities exchange to the extent of more than
5% of the value of such Fund's net assets. Neither LONGER TERM FUND may
sell short the securities of any class of an issuer to the extent, at the
time of the transaction, of more than 5% of the outstanding securities of
that class.
In addition to the short sales discussed above, each LONGER TERM FUND
may make short sales "against the box," a transaction in which such Fund
enters into a short sale of a security which the Fund owns. The proceeds
of the short sale will be held by a broker until the settlement date at
which time such Fund delivers the security to close the short position.
Such Fund receives the net proceeds from the short sale. Neither
Page 13
LONGER TERM FUND will at any time have more than 15% of the value of its net
assets in deposits on short sales against the box. It currently is
anticipated that each LONGER TERM FUND will make short sales against the
box for purposes of protecting the value of its net assets
FUTURE DEVELOPMENTS - Each LONGER TERM FUND may take advantage of
opportunities in the area of options and futures contracts and options on
futures contracts and any other derivative investments which are not
presently contemplated for use by such Fund or which are not currently
available but which may be developed, to the extent such opportunities are
both consistent with the Fund's investment objective and legally
permissible for such LONGER TERM FUND. Before entering into such
transactions or making any such investment, each LONGER TERM FUND will
provide appropriate disclosure in its prospectus.
LENDING PORTFOLIO SECURITIES - From time to time, each LONGER TERM
FUND may lend securities from its portfolio to brokers, dealers and other
financial institutions needing to borrow securities to complete certain
transactions. Such loans may not exceed 331/3% of the value of such
Fund's total assets. In connection with such loans, the Fund will receive
collateral consisting of cash, U.S. Government securities or irrevocable
letters of credit which will be maintained at all times in an amount equal
to at least 100% of the current market value of the loaned securities. A
LONGER TERM FUND can increase its income through the investment of such
collateral. The LONGER TERM FUND continues to be entitled to payments in
amounts equal to the interest or other distributions payable on the loaned
security and receives interest on the amount of the loan. Such loans will
be terminable at any time upon specified notice. A LONGER TERM FUND
might experience risk of loss if the institution with which it has engaged
in a portfolio loan transaction breaches its agreement with such Fund.
CERTAIN FUNDAMENTAL POLICIES - Each Fund may (i) borrow money from
banks, but only for temporary or emergency (not leveraging) purposes, in
an amount up to 15% (10% in the case of the MONEY MARKET FUND) of the
value of its 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. While borrowings exceed 5%
of the value of such Fund's total assets, the Fund will not make any
additional investments; and (ii) invest up to 25% of its total assets in the
securities of issuers in any single industry, provided that there is no such
limitation on investments in Municipal Obligations and, for temporary
defensive purposes, securities issued by domestic banks and obligations
issued or guaranteed by the U.S. Government, its agencies or
instrumentalities. In addition, the MONEY MARKET FUND may: (i) pledge,
hypothecate, mortgage or otherwise encumber its assets, but only in an
amount up to 10% of the value of its total assets to secure borrowings for
temporary or emergency purposes; (ii) invest up to 10% of its net assets
in repurchase agreements providing for settlement in more than seven
days after notice and in securities that are not readily marketable (which
securities could include participation interests (including municipal
lease/purchase agreements) that are not subject to the demand feature
described above and floating and variable rate demand obligations as to
which the Fund cannot exercise the related demand feature described
above and as to which there is no secondary market); and (iii) invest up to
10% of its net assets in time deposits maturing from two business days
through seven calendar days. This paragraph describes fundamental
policies that cannot be changed, as to a Fund, without approval by the
holders of a majority (as defined in the Investment Company Act of 1940)
of such Fund's outstanding voting shares. See "Investment Objective and
Management Policies-Investment Restrictions" in the Statement of
Additional Information.
CERTAIN ADDITIONAL NON-FUNDAMENTAL POLICIES (APPLICABLE TO THE
LONGER TERM FUNDS ONLY) __ Each LONGER TERM FUND may (i) pledge,
hypothecate, mortgage or otherwise encumber its assets, but only to
secure permitted borrowings; and (ii) invest up to 15% of the value of its
net assets in repurchase agreements providing for settlement in more
than seven days after notice and in other illiquid securities (which
securities could include participation interests (including municipal
lease/purchase agreements) that are not subject to the demand fea-
Page 14
ture described above and floating and variable rate demand obligations as to
which the Fund cannot exercise the related demand feature described
above and as to which there is no secondary market). See "Investment
Objective and Management Policies __ Investment Restrictions" in the
Statement of Additional Information.
RISK FACTORS
INVESTING IN NEW YORK MUNICIPAL OBLIGATIONS - You should consider
carefully the special risks inherent in investing in New York Municipal
Obligations. These risks result from the financial condition of New York
State, certain of its public bodies and municipalities, and New York City.
Beginning in early 1975, New York State, New York City and other State
entities faced serious financial difficulties which jeopardized the credit
standing and impaired the borrowing abilities of such entities and
contributed to high interest rates on, and lower market prices for, debt
obligations issued by them. A recurrence of such financial difficulties or a
failure of certain financial recovery programs could result in defaults or
declines in the market values of various New York Municipal Obligations in
which each Fund may invest. If there should be a default or other financial
crisis relating to New York State, New York City, a State or City agency,
or a State municipality, the market value and marketability of outstanding
New York Municipal Obligations in a Fund's portfolio and the interest
income to the Fund could be adversely affected. Moreover, the significant
slowdown in the New York and regional economies in the early 1990s
added substantial uncertainty to estimates of the State's tax revenues,
which, in part, caused the State to overestimate its General Fund tax
receipts for the 1992 fiscal year by $575 million. The 1992 fiscal year
was the fourth consecutive year in which the State incurred a cash-basis
operating deficit in the General Fund and issued deficit notes. The State's
1993 fiscal year, however, was characterized by national and regional
economies that performed better than projected. After reflecting a 1993
year-end deposit to the refund reserve account of $671 million, reported
1993 General Fund receipts were $45 million higher than originally
projected in April 1992. If not for that year-end transaction, General Fund
receipts would have been $716 million higher than originally projected.
There can be no assurance that New York will not face substantial
potential budget gaps in future years. In 1990, S&P and Moody's lowered
their ratings of the State's general obligation debt from AA_ to A and
from A1 to A, respectively, and short-term notes, from
SP-1 + to SP-1 and from MIG-l to MIG-2, respectively. In January 1992,
Moody's lowered from A to Baal the ratings on certain appropriation-
backed debt of New York State and its agencies. New York State's general
obligation, state guaranteed and New York State Local Government
Assistance Corporation bonds continued to be rated A by Moody's. In
addition, in January 1992, S&P lowered from A to A_ its ratings of New
York State general obligation bonds and stated that it continued to assess
the ratings outlook as negative. The ratings of various agency debt, state
moral obligations, contractual obligations, lease purchase obligations and
state guarantees also were lowered. In February 1991, Moody's lowered
its rating on New York City's general obligation bonds from A to Baal. The
rating changes reflect the rating agencies' concerns about the financial
condition of New York State and City, the heavy debt load of the State and
City, and economic uncertainties in the region. You should obtain and
review a copy of the Statement of Additional Information which more
fully sets forth these and other risk factors attendant to an investment in
each of the Funds.
LOWER RATED BONDS (APPLICABLE TO THE LONGER TERM FUNDS ONLY) - You
should carefully consider the relative risks of investing in the higher
yielding (and, therefore, higher risk) securities in which a LONGER TERM
FUND may invest up to 20% of the value of its net assets. Lower rated
bonds as discussed herein are not eligible investments for the MONEY
MARKET FUND. These are bonds such as those rated Ba by Moody's or BB by
S&P or Fitch, or as low as the lowest rating assigned by Moody's, S&P or
Fitch. They generally are not meant for short-term investing and may be
subject to certain risks with respect to the issuing entity and to greater
market fluctuations than certain lower yielding, higher rated fixed-
income securities. Bonds rated Ba by Moody's are judged to have
speculative elements; their future cannot be considered as well assured
and often the protection of interest
Page 15
and principal payments may be very
moderate. Bonds rated BB by S&P are regarded as having predominantly
speculative characteristics and, while such obligations have less near-
term vulnerability to default than other speculative grade debt, they face
major ongoing uncertainties or exposure to adverse business, financial or
economic conditions which could lead to inadequate capacity to meet
timely interest and principal payments. Bonds rated BB by Fitch are
considered speculative and the payment of principal and interest may be
affected at any time by adverse economic changes. Bonds rated C by
Moody's are regarded as having extremely poor prospects of ever attaining
any real investment standing. Bonds rated D by S&P are in default and the
payment of interest and/or repayment of principal is in arrears. Bonds
rated DDD, DD or D by Fitch are in actual or imminent default, are
extremely speculative and should be valued on the basis of their ultimate
recovery value in liquidation or reorganization of the issuer; DDD
represents the highest potential for recovery of such bonds; and D
represents the lowest potential for recovery. Such bonds, though high
yielding, are characterized by great risk. See "Appendix B" in the
Statement of Additional Information for a general description of Moody's,
S&P and Fitch ratings of Municipal Obligations. The ratings of Moody's,
S&P and Fitch represent their opinions as to the quality of the Municipal
Obligations which they undertake to rate. It should be emphasized,
however, that ratings are relative and subjective and, although ratings
may be useful in evaluating the safety of interest and principal payments,
they do not evaluate the market value risk of these bonds. Therefore,
although these ratings may be an initial criterion for selection of
portfolio investments, The Dreyfus Corporation also will evaluate these
securities and the ability of the issuers of such securities to pay interest
and principal. The ability of a LONGER TERM FUND to achieve its
investment objective may be more dependent on The Dreyfus Corporation's
credit analysis than might be the case for a fund that invested in higher
rated securities. Once the rating of a portfolio security held by a LONGER
TERM FUND has been changed, the Fund will consider all circumstances
deemed relevant in determining whether to continue to hold the security.
The market price and yield of bonds rated Ba or lower by Moody's and BB
or lower by S&P and Fitch are more volatile than those of higher rated
bonds. Factors adversely affecting the market price and yield of these
securities will adversely affect each LONGER TERM FUND'S net asset value.
In addition, the retail secondary market for these bonds may be less liquid
than that of higher rated bonds; adverse market conditions could make it
difficult at times for the LONGER TERM FUNDS to sell certain securities or
could result in lower prices than those used in calculating the net asset
value of each LONGER TERM FUND.
Each LONGER TERM FUND may invest up to 5% of the value of its total
assets in zero coupon securities and pay-in-kind bonds (bonds which pay
interest through the issuance of additional bonds) rated Ba or lower by
Moody's and BB or lower by S&P and Fitch. These securities may be subject
to greater fluctuations in value due to changes in interest rates than
interest-bearing securities and thus may be considered more speculative
than comparably rated interest-bearing securities. See "Other Investment
Considerations" below, and "Investment Objective and Management
Policies-Risk Factors-Lower Rated Bonds" and "Dividends, Distributions
and Taxes" in the Statement of Additional Information.
OTHER INVESTMENT CONSIDERATIONS - Even though interest-bearing
securities are investments which promise a stable stream of income, the
prices of such securities are inversely affected by changes in interest
rates and, therefore, are subject to the risk of market price fluctuations.
Certain securities that may be purchased by a LONGER TERM FUND, such as
those with interest rates that fluctuate directly or indirectly based on
multiples of a stated index, are designed to be highly sensitive to changes
in interest rates and can subject the holders thereof to extreme
reductions of yield and possibly loss of principal. The values of fixed-
income securities also may be affected by changes in the credit rating or
financial condition of the issuing entities. The MONEY MARKET FUND seeks
to maintain a stable $1.00 share price, while the net asset value of each
LONGER TERM FUND generally will not be stable and should fluctuate based
upon changes in the value of the its respective portfolio
Page 16
securities.
Securities in which the LONGER TERM FUNDS invest may earn a higher level
of current income than certain shorter-term or higher quality securities
which generally have greater liquidity, less market risk and less
fluctuation in market value.
New issues of Municipal Obligations usually are offered on a when-
issued basis, which means that delivery and payment for such Municipal
Obligations ordinarily take place within 45 days after the date of the
commitment to purchase. The payment obligation and the interest rate
that will be received on the Municipal Obligations are fixed at the time a
Fund enters into the commitment. A Fund will make commitments to
purchase such Municipal Obligations only with the intention of actually
acquiring the securities, but the Fund may sell these securities before the
settlement date if it is deemed advisable, although any gain realized on
such sale would be taxable. The Funds will not accrue income in respect of
a when-issued security prior to its stated delivery date. No additional
when-issued commitments will be made by a Fund if more than 20% of the
value of its net assets would be so committed.
Municipal Obligations purchased on a when-issued basis and the
securities held in a Fund's portfolio are subject to changes in value (both
generally changing in the same way, i.e., appreciating when interest rates
decline and depreciating when interest rates rise) based upon the public's
perception of the creditworthiness of the issuer and changes, real or
anticipated, in the level of interest rates. Municipal Obligations purchased
by a Fund on a when-issued basis may expose the Fund to risk because they
may experience such fluctuations prior to their actual delivery.
Purchasing Municipal Obligations on a when-issued basis can involve the
additional risk that the yield available in the market when the delivery
takes place actually may be higher than that obtained in the transaction
itself. Each Fund will establish and maintain at its custodian bank a
segregated account consisting of cash, cash equivalents or U.S.
Government securities or other high quality liquid debt securities at least
equal at all times to the amount of the when-issued commitment.
Purchasing Municipal Obligations on a when-issued basis when a Fund is
fully or almost fully invested may result in greater potential fluctuation
in the value of such Fund's net assets and its net asset value per share.
Certain municipal lease/purchase obligations in which a Fund may
invest may contain "non-appropriation" clauses which provide that the
municipality has no obligation to make lease payments in future years
unless money is appropriated for such purpose on a yearly basis. Although
"non-appropriation" lease/purchase obligations are secured by the leased
property, disposition of the leased property in the event of foreclosure
might prove difficult. In evaluating the credit quality of a municipal
lease/purchase obligation that is unrated, The Dreyfus Corporation will
consider, on an ongoing basis, a number of factors including the likelihood
that the issuing municipality will discontinue appropriating funding for
the leased property.
Federal income tax law requires the holder of a zero coupon security or
of certain pay-in-kind bonds to accrue income with respect to these
securities prior to the receipt of cash payments. To maintain its
qualification as a regulated investment company and avoid liability for
Federal income taxes, a Fund may be required to distribute such income
accrued with respect to these securities and may have to dispose of
portfolio securities under disadvantageous circumstances in order to
generate cash to satisfy these distribution requirements.
Certain provisions in the Code relating to the issuance of Municipal
Obligations may reduce the volume of Municipal Obligations qualifying for
Federal tax exemption. One effect of these provisions could be to increase
the cost of the Municipal Obligations available for purchase by the Funds
and thus reduce the available yield. Shareholders should consult their tax
advisers concerning the effect of these provisions on an investment in a
Fund. Proposals that may restrict or eliminate the income tax exemption
for interest on Municipal Obligations may be introduced in the future. If
any such proposal were enacted that would reduce the availability of
Municipal Obligations for investment by a Fund so as to adversely affect
its shareholders, such Fund would reevaluate its investment objective and
policies and submit possible changes in its structure to shareholders for
Page 17
their consideration. If legislation were enacted that would treat a type of
Municipal Obligation as taxable, the Funds would treat such security as a
permissible Taxable Investment within the applicable limits set forth
herein.
Classification of each Fund as a "non-diversified" investment company
means that the proportion of the Fund's assets that may be invested in the
securities of a single issuer is not limited by the Investment Company Act
of 1940. A "diversified" investment company is required by the
Investment Company Act of 1940 generally to invest, with respect to 75%
of its total assets, not more than 5% of such assets in the securities of a
single issuer. However, each Fund intends to conduct its operations so as
to qualify as a "regulated investment company" for purposes of the Code
which requires that, at the end of each quarter of its taxable year, (i) at
least 50% of the market value of the Fund's total assets be invested in
cash, U.S. Government securities, the securities of other regulated
investment companies and other securities, with such other securities of
any one issuer limited for the purposes of this calculation to an amount
not greater than 5% of the value of the Fund's total assets, and (ii) not
more than 25% of the value of the total assets of the Fund be invested in
the securities of any one issuer (other than U.S. Government securities or
the securities of other regulated investment companies). Since a
relatively high percentage of each Fund's assets may be invested in the
obligations of a limited number of issuers, its portfolio securities may be
more susceptible to any single economic, political or regulatory
occurrence than the portfolio securities of a diversified investment
company.
Investment decisions for each Fund are made independently from those
of other investment companies advised by The Dreyfus Corporation.
However, if such other investment companies or one or more of the Funds
are prepared to invest in, or desire to dispose of, Municipal Obligations or
Taxable Investments at the same time, available investments or
opportunities for sales will be allocated equitably to each investment
company and Fund. In some cases, this procedure may adversely affect the
size of the position obtained for or disposed of by a Fund or the price paid
or received by it.
MANAGEMENT OF THE FUNDS
The Dreyfus Corporation, located at 200 Park Avenue, New York, New
York 10166, was formed in 1947 and serves as the investment adviser to
each Fund. As of June 30, 1994, The Dreyfus Corporation managed or
administered approximately $71 billion in assets for more than 1.9
million investor accounts nationwide.
The Dreyfus Corporation supervises and assists in the overall
management of the affairs of each Fund under a separate Management
Agreement with each Fund, subject to the overall authority of the Boards
of Trustees of the MONEY MARKET FUND and INTERMEDIATE BOND FUND, in
accordance with Massachusetts law, and the Board of Directors of the
BOND FUND, in accordance with Maryland law. The primary investment
officer of the INTERMEDIATE BOND FUND and BOND FUND is Monica S.
Wieboldt. She has held that position since May 1987 for the INTERMEDIATE
BOND FUND and since May 1985 for the BOND FUND and has been employed
by The Dreyfus Corporation since November 1983. Each of these Fund's
other investment officers are identified under "Management of the Funds"
in the Statement of Additional Information. The Dreyfus Corporation also
provides research services for each Fund as well as for other funds
advised by The Dreyfus Corporation through a professional staff of
portfolio managers and security analysts.
For the fiscal year ended May 31, 1994, the MONEY MARKET FUND paid
The Dreyfus Corporation a monthly management fee at the annual rate of
.50 of 1% of the value of such Fund's average daily net assets, the
INTERMEDIATE BOND FUND, which has agreed to pay The Dreyfus
Corporation a monthly management fee at the annual rate of .60 of 1% of
the value of such Fund's average daily net assets, paid The Dreyfus
Corporation a monthly management fee at the effective annual rate of .52
of 1% of the value of such assets pursuant to undertakings by The Dreyfus
Corporation, and the BOND FUND paid The Dreyfus Corporation a monthly
management fee at the annual rate of .60 of 1% of the value of such Fund's
average daily net assets. From time to time, The Dreyfus Corporation may
waive receipt of its fees and/or voluntarily assume certain
Page 18
expenses of a
Fund, which would have the effect of lowering that Fund's overall expense
ratio and increasing yield to investors at the time such amounts are
waived or assumed, as the case may be. No Fund will pay The Dreyfus
Corporation at a later time for any amounts it may waive, nor will a Fund
reimburse The Dreyfus Corporation for any amounts it may assume.
The INTERMEDIATE BOND FUND bears certain costs of distributing its
shares in accordance with a plan (the "Service Plan") adopted pursuant to
Rule 12b-1 under the Investment Company Act of 1940 and the BOND FUND
and MONEY MARKET FUND bear certain allocated expenses for shareholder
servicing pursuant to separate plans. See "Annual Fund Operating
Expenses" and "Service Plan and Shareholder Services Plans."
The Dreyfus Corporation may pay Dreyfus Service Corporation for
shareholder and distribution services from The Dreyfus Corporation's own
assets, including past profits but not including the management fee.
Dreyfus Service Corporation may use part or all of such payments to pay
Service Agents in respect of these services.
The Shareholder Services Group, Inc., a subsidiary of First Data
Corporation, P.O. Box 9671, Providence, Rhode Island 02940-9671, is the
Transfer and Dividend Disbursing Agent (the "Transfer Agent") for each
Fund. The Bank of New York, 110 Washington Street, New York, New York
10286, is Custodian for each Fund.
HOW TO BUY SHARES
Dreyfus Service Corporation, a wholly-owned subsidiary of The Dreyfus
Corporation, serves as distributor of each Fund. Dreyfus Service
Corporation is located at 200 Park Avenue, New York, New York 10166. The
shares it distributes are not deposits or obligations of The Dreyfus
Security Savings Bank, F.S.B., and therefore are not insured by the Federal
Deposit Insurance Corporation.
You can purchase Fund shares through Dreyfus Service Corporation or
certain financial institutions (which may include banks), securities
dealers ("Selected Dealers") and other industry professionals
(collectively, "Service Agents") that have entered into service
agreements with Dreyfus Service Corporation. Share certificates are
issued only upon your written request. No certificates are issued for
fractional shares. It is not recommended that any Fund be used as a
vehicle for Keogh, IRA or other qualified plans. Each Fund reserves the
right to reject any purchase order.
The minimum initial investment is $2,500, or $1,000 if you are a client
of a Service Agent which has made an aggregate minimum initial purchase
for its customers of $2,500. Subsequent investments must be at least
$100. The initial investment must be accompanied by the respective
Fund's Account Application. For full-time or part-time employees of The
Dreyfus Corporation or any of its affiliates or subsidiaries, directors of
The Dreyfus Corporation, Board members of a fund advised by The Dreyfus
Corporation, including members of a Fund's Board, or the spouse or minor
child of any of the foregoing, the minimum initial investment is $1,000.
For full-time or part-time employees of The Dreyfus Corporation or any of
its affiliates or subsidiaries who elect to have a portion of their pay
directly deposited into their Fund account, the minimum initial
investment is $50. The Fund reserves the right to vary further the initial
and subsequent investment minimum requirements at any time.
You may purchase Fund shares by check or wire, or through the Dreyfus
TELETRANSFER Privilege described below. Checks should be made payable
to "The Dreyfus Family of Funds." Payments to open new accounts which
are mailed should be sent to The Dreyfus Family of Funds, P.O. Box 9387,
Providence, Rhode Island 02940-9387, together with your Account
Application. For subsequent investments, your Fund account number should
appear on the check and an investment slip should be enclosed and sent to
The Dreyfus Family of Funds, P.O. Box 105, Newark, New Jersey 07101-
0105. Neither initial nor subsequent investments should be made by third
party check. Purchase orders may be delivered in person only to a Dreyfus
Financial Center. THESE ORDERS WILL BE FORWARDED TO THE RELEVANT
FUND AND WILL BE PROCESSED ONLY UPON RECEIPT THEREBY. For the
location of the nearest Dreyfus Financial Center, please call the telephone
number listed under "General Information."
Page 19
Wire payments may be made if your bank account is in a commercial
bank that is a member of the Federal Reserve System or any other bank
having a correspondent bank in New York City. Immediately available funds
may be transmitted by wire to The Bank of New York (DDA
#8900052007/DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND; or
DDA #8900052236/DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND
FUND; or DDA #8900052422/DREYFUS NEW YORK TAX EXEMPT BOND FUND,
INC.), for purchase of Fund shares in your name. The wire must include
your Fund account number (for new accounts, your Taxpayer Identification
Number ("TIN") should be included instead), account registration and
dealer number, if applicable. If your initial purchase of Fund shares is by
wire, please call 1-800-645-6561 after completing your wire payment to
obtain your Fund account number. Please include your Fund account number
on the Fund's Account Application and promptly mail the Account
Application to the Fund, as no redemptions will be permitted until the
Account Application is received. You may obtain further information about
remitting funds in this manner from your bank. All payments should be
made in U.S. dollars and, to avoid fees and delays, should be drawn only on
U.S. banks. A charge will be imposed if any check used for investment in
your account does not clear. Other purchase procedures may be in effect
for clients of certain Service Agents. Each Fund makes available to certain
large institutions the ability to issue purchase instructions through
compatible computer facilities.
Subsequent investments also may be made by electronic transfer of
funds from an account maintained in a bank or other domestic financial
institution that is an Automated Clearing House member. You must direct
the institution to transmit immediately available funds through the
Automated Clearing House to The Bank of New York with instructions to
credit your Fund account. The instructions must specify your Fund account
registration, and your Fund account number PRECEDED BY THE DIGITS
"1111."
Management understands that some Service Agents may impose certain
conditions on their clients which are different from those described in
this Prospectus, and, to the extent permitted by applicable regulatory
authorities, may charge their clients direct fees for Servicing (as defined
under "Service Plan and Shareholder Services Plans"). These fees would be
in addition to any amounts which might be received under the Service Plan
of the INTERMEDIATE BOND FUND or the Shareholder Services Plan of the
BOND FUND or the MONEY MARKET FUND. Each Service Agent has agreed to
transmit to its clients a schedule of such fees. You should consult your
Service Agent in this regard.
Shares of the MONEY MARKET FUND are sold on a continuous basis at the
net asset value per share next determined after an order in proper form
and Federal Funds (monies of member banks within the Federal Reserve
System which are held on deposit at a Federal Reserve Bank) are received
by the Transfer Agent. If you do not remit Federal Funds, your payment
must be converted into Federal Funds. This usually occurs within one
business day of receipt of a bank wire or within two business days of
receipt of a check drawn on a member bank of the Federal Reserve System.
Checks drawn on banks which are not members of the Federal Reserve
System may take considerably longer to convert into Federal Funds. Prior
to receipt of Federal Funds, your money will not be invested.
The MONEY MARKET FUND'S net asset value per share is determined as of
12:00 Noon, New York time, on each day that the New York Stock Exchange
is open for business. Net asset value per share is computed by dividing the
value of the MONEY MARKET FUND'S net assets (i.e., the value of its assets
less liabilities) by the total number of shares outstanding. See
"Determination of Net Asset Value" in the Statement of Additional
Information.
If your payments into the MONEY MARKET FUND are received in or
converted into Federal Funds by 12:00 Noon, New York time, by the
Transfer Agent, you will receive the dividend declared that day. If your
payments are received in or converted into Federal Funds after 12:00 Noon,
New York time, by the Transfer Agent, you will begin to accrue dividends
on the following business day.
Page 20
Qualified institutions may telephone orders for purchase of MONEY
MARKET FUND shares. These orders will become effective at the price
determined at 12:00 Noon, New York time, and the shares purchased will
receive the dividend on Fund shares declared on that day if the telephone
order is placed by 12:00 Noon, New York time, and Federal Funds are
received by 4:00 p.m., New York time, on that day.
Shares of the LONGER TERM FUNDS are sold on a continuous basis at the
net asset value per share next determined after an order in proper form is
received by the Transfer Agent. Net asset value per share is determined as
of the close of trading on the floor of the New York Stock Exchange
(currently 4:00 p.m., New York time), on each day that the New York Stock
Exchange is open for business. For purposes of determining the net asset
value of each LONGER TERM FUND, options and futures contracts will be
valued 15 minutes after the close of trading on the floor of the New York
Stock Exchange. Net asset value per share is computed by dividing the
value of the specific Fund's net assets (i.e., the value of its assets less
liabilities) by the total number of shares outstanding. The investments of
each LONGER TERM FUND are valued by an independent pricing service
approved by such Fund's Board, and are valued at fair value as determined
by the pricing service. The pricing service's procedures are reviewed
under the general supervision of the Fund's Board. For further information
regarding the methods employed in valuing each LONGER TERM FUND'S
investments, see "Determination of Net Asset Value" in the Statement of
Additional Information.
Federal regulations require that you provide a certified TIN upon
opening or reopening a Fund account. See "Dividends, Distributions and
Taxes" and each Fund's Account Application for further information
concerning this requirement. Failure to furnish a certified TIN to the Fund
could subject you to a $50 penalty imposed by the Internal Revenue
Service.
DREYFUS TELETRANSFER PRIVILEGE - You may purchase Fund shares
(minimum $500, maximum $150,000 per day) by telephone if you have
checked the appropriate box and supplied the necessary information on the
Fund's Account Application or have filed a Shareholder Services Form with
the Transfer Agent. The proceeds will be transferred between the bank
account designated in one of these documents and your Fund account. Only
a bank account maintained in a domestic financial institution which is an
Automated Clearing House member may be so designated. The Fund may
modify or terminate this Privilege at any time or charge a service fee
upon notice to shareholders. No such fee currently is contemplated.
If you have selected the Dreyfus TELETRANSFER Privilege, you may request
a Dreyfus TELETRANSFER purchase of Fund shares by telephoning 1-800-
221-4060 or, if you are calling from overseas, call 1-401-455-3306.
SHAREHOLDER SERVICES
The services and privileges described under this heading may not be
available to shareholders who are clients of certain Service Agents, and
some Service Agents may impose certain conditions on their clients which
are different from those described in this Prospectus. You should consult
your Service Agent in this regard.
EXCHANGE PRIVILEGE - The Exchange Privilege enables you to purchase, in
exchange for shares of a Fund, shares of certain other funds managed or
administered by The Dreyfus Corporation, to the extent such shares are
offered for sale in your state of residence. These funds have different
investment objectives which may be of interest to you. Exchanges may be
made between each Fund described in this Prospectus as well. If you
desire to use this Privilege, you should consult Dreyfus Service
Corporation or your Service Agent to determine if it is available and
whether any conditions are imposed on its use.
To use this Privilege, you or your Service Agent acting on your behalf
must give exchange instructions to the Transfer Agent in writing, by wire
or by telephone. If you previously have established the Telephone Exchange
Privilege, you may telephone exchange instructions by calling 1-800-221-
4060 or, if you are calling from overseas, call 1-401-455-3306. See "How
to Redeem Fund Shares-Procedures." Before any exchange, you must obtain
and should review a copy of the current prospectus of the fund into which
the exchange is being made.
Page 21
Prospectuses may be obtained from Dreyfus
Service Corporation. Except in the case of Personal Retirement Plans, the
shares being exchanged must have a current value of at least $500;
furthermore, when establishing a new account by exchange, the shares
being exchanged must have a value of at least the minimum initial
investment required for the fund into which the exchange is being made.
Telephone exchanges may be made only if the appropriate "YES" box has
been checked on the Account Application, or a separate signed Shareholder
Services Form is on file with the Transfer Agent. Upon an exchange into a
new account, the following shareholder services and privileges, as
applicable and where available, will be automatically carried over to the
fund into which the exchange is made: Exchange Privilege, Check
Redemption Privilege, Wire Redemption Privilege, Telephone Redemption
Privilege, Dreyfus TELETRANSFER Privilege, and the dividend/capital gain
distribution option (except for Dreyfus Dividend Sweep) selected by the
investor.
Shares will be exchanged at the next determined net asset value;
however, a sales load may be charged with respect to exchanges into funds
sold with a sales load. If you are exchanging into a fund that charges a
sales load, you may qualify for share prices which do not include the sales
load or which reflect a reduced sales load, if the shares of the fund from
which you are exchanging were: (a) purchased with a sales load, (b)
acquired by a previous exchange from shares purchased with a sales load,
or (c) acquired through reinvestment of dividends or distributions paid
with respect to the foregoing categories of shares. To qualify, at the time
of your exchange you must notify the Transfer Agent or your Service Agent
must notify Dreyfus Service Corporation. Any such qualification is subject
to confirmation of your holdings through a check of appropriate records.
See "Shareholder Services" in the Statement of Additional Information. No
fees currently are charged shareholders directly in connection with
exchanges, although the Funds reserve the right, upon not less than 60
days' written notice, to charge respective shareholders a nominal fee in
accordance with rules promulgated by the Securities and Exchange
Commission. Each Fund reserves the right to reject any exchange request
in whole or in part. The Exchange Privilege may be modified or terminated
by each Fund at any time upon notice to its shareholders.
The exchange of shares of one fund for shares of another is treated for
Federal income tax purposes as a sale of the shares given in exchange by
the shareholder and, therefore, an exchanging shareholder may realize a
taxable gain or loss.
DREYFUS AUTO-EXCHANGE PRIVILEGE - Dreyfus Auto-Exchange Privilege
enables you to invest regularly (on a semi-monthly, monthly, quarterly or
annual basis), in exchange for shares of a Fund, in shares of other funds in
the Dreyfus Family of Funds of which you are currently an investor. The
amount you designate, which can be expressed either in terms of a
specific dollar or share amount ($100 minimum), will be exchanged
automatically on the first and/or fifteenth of the month according to the
schedule you have selected. Shares will be exchanged at the then-current
net asset value; however, a sales load may be charged with respect to
exchanges into funds sold with a sales load. See "Shareholder Services" in
the Statement of Additional Information. The right to exercise this
Privilege may be modified or cancelled by your Fund or the Transfer Agent.
You may modify or cancel your exercise of this Privilege at any time by
writing to The Dreyfus Family of Funds, P.O. Box 9671, Providence, Rhode
Island 02940-9671. Each Fund may charge a service fee for this Privilege.
No such fee currently is contemplated. The exchange of shares of one fund
for shares of another is treated for Federal income tax purposes as a sale
of the shares given in exchange by the shareholder and, therefore, an
exchanging shareholder may realize a taxable gain or loss. For more
information concerning this Privilege and the funds in the Dreyfus Family
of Funds eligible to participate in this Privilege, or to obtain a Dreyfus
Auto-Exchange Authorization Form, please call toll free 1-800-645-6561.
DREYFUS-AUTOMATIC ASSET BUILDER - Dreyfus-AUTOMATIC Asset Builder
permits you to purchase Fund shares (minimum of $100 and maximum of
$150,000 per transaction) at regular intervals selected by you. Fund
shares are purchased by transferring funds from the bank account
designated by you. At your option,
Page 22
the bank account designated by you will
be debited in the specified amount, and Fund shares will be purchased,
once a month, on either the first or fifteenth day, or twice a month, on
both days. Only an account maintained at a domestic financial institution
which is an Automated Clearing House member may be so designated. To
establish a Dreyfus-AUTOMATIC Asset Builder account, you must file an
authorization form with the Transfer Agent. You may obtain the necessary
authorization form from Dreyfus Service Corporation. You may cancel your
participation in this Privilege or change the amount of purchase at any
time by mailing written notification to The Dreyfus Family of Funds, P.O.
Box 9671, Providence, Rhode Island 02940-9671, and the notification will
be effective three business days following receipt. Each Fund may modify
or terminate this Privilege at any time or charge a service fee. No such
fee currently is contemplated.
DREYFUS GOVERNMENT DIRECT DEPOSIT PRIVILEGE - Dreyfus Government
Direct Deposit Privilege enables you to purchase shares of a Fund
(minimum of $100 and maximum of $50,000 per transaction) by having
Federal salary, Social Security, or certain veterans', military or other
payments from the Federal government automatically deposited into your
Fund account. You may deposit as much of such payments as you elect. To
enroll in Dreyfus Government Direct Deposit, you must file with the
Transfer Agent a completed Direct Deposit Sign-Up Form for each type of
payment that you desire to include in this Privilege. The appropriate form
may be obtained from Dreyfus Service Corporation. Death or legal
incapacity will terminate your participation in this Privilege. You may
elect at any time to terminate your participation by notifying in writing
the appropriate Federal agency. Further, each Fund may terminate your
participation upon 30 days' notice to you.
DREYFUS DIVIDEND OPTIONS - Dreyfus Dividend Sweep enables you to invest
automatically dividends or dividends and capital gain distributions, if any,
paid by a Fund in shares of another fund in the Dreyfus Family of Funds of
which you are an investor. Shares of the other fund will be purchased at
the then-current net asset value; however, a sales load may be charged
with respect to investments in shares of a fund sold with a sales load. If
you are investing in a fund that charges a sales load, you may qualify for
share prices which do not include the sales load or which reflect a
reduced sales load. If you are investing in a fund that charges a contingent
deferred sales charge, the shares purchased will be subject on redemption
to the contingent deferred sales charge, if any, applicable to the
purchased shares. See "Shareholder Services" in the Statement of
Additional Information. Dreyfus Dividend ACH permits you to transfer
electronically on the payment date dividends or dividends and capital gain
distributions, if any, from a Fund to a designated bank account. Only an
account maintained at a domestic financial institution which is an
Automated Clearing House member may be so designated. Banks may
charge a fee for this service.
For more information concerning these privileges, or to request a
Dividend Options Form, please call toll free
1-800-645-6561. You may cancel these privileges by mailing written
notification to The Dreyfus Family of Funds, P.O. Box 9671, Providence,
Rhode Island 02940-9671. To select a new fund after cancellation, you
must submit a new Dividend Options Form. Enrollment in or cancellation of
these privileges is effective three business days following receipt of
notification. These privileges are available only for existing accounts and
may not be used to open new accounts. Minimum subsequent investments
do not apply for Dreyfus Dividend Sweep. Each Fund may modify or
terminate these privileges at any time or charge a service fee. No such fee
currently is contemplated.
DREYFUS PAYROLL SAVINGS PLAN - Dreyfus Payroll Savings Plan permits
you to purchase shares of a Fund (minimum of $100 per transaction)
automatically on a regular basis. Depending upon your employer's direct
deposit program, you may have part or all of your paycheck transferred to
your existing Dreyfus account electronically through the Automated
Clearing House system at each pay period. To establish a Dreyfus Payroll
Savings Plan account, you must file an authorization form with your
employer's payroll department. Your employer must complete the reverse
side of the form and return it to The Dreyfus Family of Funds, P.O. Box
9671, Providence, Rhode Island 02940-9671. You may obtain the necessary
authorization form from Dreyfus Service Corporation. You may change the
amount of purchase or cancel the authorization only by written
noti-
Page 23
fication to your employer. It is the sole responsibility of your
employer, not Dreyfus Service Corporation, The Dreyfus Corporation, the
relevant Fund, the Transfer Agent or any other person, to arrange for
transactions under the Dreyfus Payroll Savings Plan. Each Fund may modify
or terminate this Privilege at any time or charge a service fee. No such
fee currently is contemplated.
AUTOMATIC WITHDRAWAL PLAN - The Automatic Withdrawal Plan permits
you to request withdrawal of a specified dollar amount (minimum $50) on
either a monthly or quarterly basis if you have a $5,000 minimum account.
An application for the Automatic Withdrawal Plan can be obtained from
Dreyfus Service Corporation. There is a service charge of 50 cents for
each withdrawal check. The Automatic Withdrawal Plan may be ended at
any time by you, your Fund or the Transfer Agent. Shares for which
certificates have been issued may not be redeemed through the Automatic
Withdrawal Plan.
HOW TO REDEEM SHARES
GENERAL - You may request redemption of your shares in any of the Funds
at any time. Redemption requests should be transmitted to the Transfer
Agent as described below. When a request is received in proper form, your
Fund will redeem the shares at the next determined net asset value.
No Fund imposes a charge when shares are redeemed directly through
Dreyfus Service Corporation. Service Agents may charge a nominal fee for
effecting redemptions of Fund shares. Any certificates representing Fund
shares being redeemed must be submitted with the redemption request.
The value of the shares redeemed may be more or less than their original
cost, depending upon the respective Fund's then-current net asset value.
Each Fund ordinarily will make payment for all shares redeemed within
seven days after receipt by the Transfer Agent of a redemption request in
proper form, except as provided by the rules of the Securities and
Exchange Commission. HOWEVER, IF YOU HAVE PURCHASED FUND SHARES BY
CHECK, BY DREYFUS TELETRANSFER PRIVILEGE OR THROUGH DREYFUS-
AUTOMATIC ASSET BUILDER AND SUBSEQUENTLY SUBMIT A WRITTEN
REDEMPTION REQUEST TO THE TRANSFER AGENT, THE REDEMPTION
PROCEEDS WILL BE TRANSMITTED TO YOU PROMPTLY UPON BANK CLEARANCE
OF YOUR PURCHASE CHECK, DREYFUS TELETRANSFER PURCHASE OR
DREYFUS-AUTOMATIC ASSET BUILDER ORDER, WHICH MAY TAKE UP TO EIGHT
BUSINESS DAYS OR MORE. IN ADDITION, A FUND WILL NOT HONOR
REDEMPTION CHECKS UNDER THE CHECK REDEMPTION PRIVILEGE, AND WILL
REJECT REQUESTS TO REDEEM SHARES BY WIRE OR TELEPHONE OR PURSUANT
TO THE DREYFUS TELETRANSFER PRIVILEGE, FOR A PERIOD OF EIGHT
BUSINESS DAYS AFTER RECEIPT BY THE TRANSFER AGENT OF THE PURCHASE
CHECK, THE DREYFUS TELETRANSFER PURCHASE OR THE DREYFUS-
AUTOMATIC ASSET BUILDER ORDER AGAINST WHICH SUCH REDEMPTION IS
REQUESTED. THESE PROCEDURES WILL NOT APPLY IF YOUR SHARES WERE
PURCHASED BY WIRE PAYMENT OR IF YOU OTHERWISE HAVE A SUFFICIENT
COLLECTED BALANCE IN YOUR ACCOUNT TO COVER THE REDEMPTION
REQUEST. PRIOR TO THE TIME ANY REDEMPTION IS EFFECTIVE, DIVIDENDS ON
SUCH SHARES WILL ACCRUE AND BE PAYABLE, AND YOU WILL BE ENTITLED
TO EXERCISE ALL OTHER RIGHTS OF BENEFICIAL OWNERSHIP. Fund shares
will not be redeemed until the Transfer Agent has received your Account
Application.
Each Fund reserves the right to redeem your account at its option upon
not less than 45 days' written notice if your account's net asset value is
$500 or less and remains so during the notice period.
PROCEDURES - You may redeem shares by using the regular redemption
procedure through the Transfer Agent, the Check Redemption Privilege, the
Wire Redemption Privilege, the Telephone Redemption Privilege, the
Dreyfus TELETRANSFER Privilege or, if you are a client of a Selected
Dealer, through the Selected Dealer. Other redemption procedures may be
in effect for clients or certain Service Agents. The Fund makes available
to certain large institutions the ability to issue redemption instructions
through compatible computer facilities.
You may redeem or exchange Fund shares by telephone if you have checked
the appropriate box on the Fund's Account Application or have filed a
Shareholder Services Form with the Transfer Agent. If you select a
Page 24
telephone redemption or exchange privilege, you authorize the Transfer
Agent to act on telephone instructions from any person representing
himself or herself to be you, or a representative of your Service Agent,
and reasonably believed by the Transfer Agent to be genuine. The Fund will
require the Transfer Agent to employ reasonable procedures, such as
requiring a form of personal identification, to confirm that instructions
are genuine and, if it does not follow such procedures, the Fund or the
Transfer Agent may be liable for any losses due to unauthorized or
fraudulent instructions. Neither the Fund nor the Transfer Agent will be
liable for following telephone instructions reasonably believed to be
genuine.
During times of drastic economic or market conditions, you may
experience difficulty in contacting the Transfer Agent by telephone to
request a redemption or exchange of Fund shares. In such cases, you should
consider using the other redemption procedures described herein. Use of
these other redemption procedures may result in your redemption request
being processed at a later time than it would have been if telephone
redemption had been used. During the delay, a LONGER TERM FUND'S net
asset value may fluctuate.
REGULAR REDEMPTION - Under the regular redemption procedure, you may
redeem shares by written request mailed to The Dreyfus Family of Funds,
P.O. Box 9671, Providence, Rhode Island 02940-9671. Redemption requests
may be delivered in person only to a Dreyfus Financial Center. THESE
REQUESTS WILL BE FORWARDED TO THE RELEVANT FUND AND WILL BE
PROCESSED ONLY UPON RECEIPT THEREBY. For the location of the nearest
Dreyfus Financial Center, please call the telephone number listed under
"General Information." Redemption requests must be signed by the
individual shareholder, including each owner of a joint account, and each
signature must be guaranteed. The Transfer Agent has adopted standards
and procedures pursuant to which signature-guarantees in proper form
generally will be accepted from domestic banks, brokers, dealers, credit
unions, national securities exchanges, registered securities associations,
clearing agencies and savings associations, as well as from participants
in the New York Stock Exchange Medallion Program, the Securities
Transfer Agents Medallion Program ("STAMP") and the Stock Exchanges
Medallion Program. If you have any questions with respect to signature-
guarantees, please call the telephone number listed under "General
Information." Redemption proceeds of at least $1,000 will be wired to any
member bank of the Federal Reserve System in accordance with a written
signature-guaranteed request.
CHECK REDEMPTION PRIVILEGE - You may request on the Account
Application, Shareholder Services Form or by later written request that
your Fund provide Redemption Checks drawn on the Fund's account.
Redemption Checks may be made payable to the order of any person in the
amount of $500 or more. Potential fluctuations in the net asset value of a
LONGER TERM FUND'S shares should be considered in determining the
amount of any check drawn on such LONGER TERM FUND'S account.
Redemption Checks should not be used to close your account. Redemption
Checks are free, but the Transfer Agent will impose a fee for stopping
payment of a Redemption Check upon your request or if the Transfer Agent
cannot honor the Redemption Check due to insufficient funds or other valid
reason. You should date your Redemption Checks with the current date
when you write them. Please do not postdate your Redemption Checks. If
you do, the Transfer Agent will honor, upon presentment, even if presented
before the date of the check, all postdated Redemption Checks which are
dated within six months of presentment for payment, if they are
otherwise in good order. Shares for which certificates have been issued
may not be redeemed by Redemption Check. This Privilege may be modified
or terminated at any time by your Fund or the Transfer Agent upon notice
to shareholders.
WIRE REDEMPTION PRIVILEGE - You may request by wire or telephone that
redemption proceeds (minimum $1,000) be wired to your account at a bank
which is a member of the Federal Reserve System, or a correspondent bank
if your bank is not a member. To establish the Wire Redemption Privilege,
you must check the appropriate box and supply the necessary information
on the Fund's Account Application or file a Shareholder Services Form
with the Transfer Agent. You may direct that redemption proceeds be paid
by check (maximum
Page 25
$150,000 per day) made out to the owners of record
and mailed to your address. Redemption proceeds of less than $1,000 will
be paid automatically by check. Holders of jointly registered Fund or bank
accounts may have redemption proceeds of only up to $250,000 wired
within any 30-day period. You may telephone redemption requests by
calling 1-800-221-4060 or, if you are calling from overseas, call 1-401-
455-3306. The Fund reserves the right to refuse any redemption request,
including requests made shortly after a change of address, and may limit
the amount involved or the number of such requests. This Privilege may be
modified or terminated at any time by the Transfer Agent or your Fund.
The Statement of Additional Information sets forth instructions for
transmitting redemption requests by wire. Shares for which certificates
have been issued are not eligible for this Privilege.
TELEPHONE REDEMPTION PRIVILEGE - You may redeem Fund shares
(maximum $150,000 per day) by telephone if you have checked the
appropriate box on the Fund's Account Application or have filed a
Shareholder Services Form with the Transfer Agent. The redemption
proceeds will be paid by check and mailed to your address. You may
telephone redemption instructions by calling 1-800-221-4060 or, if you
are calling from overseas, call 1-401-455-3306. The Fund reserves the
right to refuse any request made by telephone, including requests made
shortly after a change of address, and may limit the amount involved or
the number of telephone redemption requests. This Privilege may be
modified or terminated at any time by the Transfer Agent or your Fund.
Shares for which certificates have been issued are not eligible for this
Privilege.
DREYFUS TELETRANSFER PRIVILEGE - You may redeem Fund shares
(minimum $500 per day) by telephone if you have checked the appropriate
box and supplied the necessary information on the Fund's Account
Application or have filed a Shareholder Services Form with the Transfer
Agent. The proceeds will be transferred between your Fund account and the
bank account designated in one of these documents. Only such an account
maintained in a domestic financial institution which is an Automated
Clearing House member may be so designated. Redemption proceeds will be
on deposit in your account at an Automated Clearing House member bank
ordinarily two days after receipt of the redemption request or, at your
request, paid by check (maximum $150,000 per day) and mailed to your
address. Holders of jointly registered Fund or bank accounts may redeem
through the Dreyfus TELETRANSFER Privilege for transfer to their bank
account only up to $250,000 within any 30-day period. The Fund reserves
the right to refuse any request made by telephone, including requests
made shortly after a change of address, and may limit the amount involved
or the number of such requests. Each Fund may modify or terminate this
Privilege at any time or charge a service fee upon notice to shareholders.
No such fee currently is contemplated.
If you have selected the Dreyfus TELETRANSFER Privilege, you may request
a Dreyfus TELETRANSFER redemption of Fund shares by telephoning 1-800-
221-4060 or, if you are calling from overseas, call 1-401-455-3306.
Shares issued in certificate form are not eligible for this Privilege.
REDEMPTION THROUGH A SELECTED DEALER - If you are a shareholder of the
INTERMEDIATE BOND FUND and a customer of a Selected Dealer, you may
make redemption requests to your Selected Dealer. If the Selected Dealer
transmits the redemption request so that it is received by the Transfer
Agent by the close of trading on the floor of the New York Stock Exchange
(currently 4:00 p.m., New York time) on a given day, the redemption
request will be effective on that day. If a redemption request is received
by the Transfer Agent after the close of trading on the floor of the New
York Stock Exchange, the redemption request will be effective on the next
business day. It is the responsibility of the Selected Dealer to transmit a
request so that it is received in a timely manner. The proceeds of the
redemption are credited to your account with the Selected Dealer. See
"How to Buy Shares" for a discussion of additional conditions or fees that
may be imposed upon redemption.
Page 26
SERVICE PLAN AND SHAREHOLDER SERVICES PLANS
INTERMEDIATE BOND FUND - Under the INTERMEDIATE BOND FUND'S Service
Plan, adopted pursuant to Rule 12b-l under the Investment Company Act of
1940, the INTERMEDIATE BOND FUND pays Dreyfus Service Corporation for
advertising, marketing and distributing such Fund's shares and for
servicing its shareholders at an annual rate of .25 of 1% of the value of
the INTERMEDIATE BOND FUND'S average daily net assets. Under this
Service Plan, Dreyfus Service Corporation may make payments to Service
Agents for administration, for servicing INTERMEDIATE BOND FUND
shareholders who are also their clients and/or for distribution. Dreyfus
Service Corporation determines the amounts to be paid to Service Agents.
Service Agents receive such fees in respect of the average daily value of
the INTERMEDIATE BOND FUND'S shares owned by shareholders for whom
the Service Agent performs Servicing (as defined below) or for whom the
Service Agent is the dealer or holder of record. The Service Plan also
provides that The Dreyfus Corporation may pay Service Agents for
Servicing out of its management fee, its past profits or any other source
available to it. From time to time, Dreyfus Service Corporation may defer
or waive receipt of fees under the Service Plan while retaining the ability
to be paid by the Fund under the Service Plan thereafter. The fees payable
to Dreyfus Service Corporation under the Service Plan for advertising,
marketing and distributing the INTERMEDIATE BOND FUND'S shares and
payments to Service Agents are payable without regard to actual expenses
incurred.
The INTERMEDIATE BOND FUND also bears the costs of preparing and
printing prospectuses and statements of additional information used for
regulatory purposes and for distribution to existing shareholders. Under
the Service Plan, the INTERMEDIATE BOND FUND bears (a) the costs of
preparing, printing and distributing prospectuses and statements of
additional information used for other purposes, and (b) the costs
associated with implementing and operating the Service Plan (such as
costs of printing and mailing service agreements), the aggregate of such
amounts not to exceed in any fiscal year of the INTERMEDIATE BOND FUND
the greater of $100,000 or .005 of 1% of the value of its average daily net
assets for such fiscal year. Each item for which a payment may be made
under the Service Plan may constitute an expense of distributing
INTERMEDIATE BOND FUND shares as the Securities and Exchange
Commission construes such term under Rule 12b-1.
Expenses under the Service Plan may be carried forward from one year
to another to the extent they remain unpaid. All or a part of any such
amount carried forward will be paid at such time, if ever, as the Board of
Trustees determines to pay it. The INTERMEDIATE BOND FUND will not be
charged for interest, carrying or other finance charges on any
unreimbursed distribution or other expense incurred and not paid in a prior
year.
Servicing may include, among other things, one or more of the
following: answering client inquiries regarding the Fund; assisting clients
in changing dividend options, account designations and addresses;
performing sub-accounting; establishing and maintaining shareholder
accounts and records; processing purchase and redemption transactions;
investing client cash account balances automatically in Fund shares;
providing periodic statements showing a client's account balance and
integrating such statements with those of other transactions and balances
in the client's other accounts serviced by the Service Agent; arranging for
bank wires; and such other services as each Fund may request, to the
extent the Service Agent is permitted by applicable statute, rule or
regulation.
MONEY MARKET FUND AND BOND FUND __ The MONEY MARKET FUND and the
BOND FUND have each adopted a Shareholder Services Plan pursuant to
which the Fund reimburses Dreyfus Service Corporation an amount not to
exceed an annual rate of .25 of 1% of the value of such Fund's average
daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The
Page 27
services provided
may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the Fund and providing reports
and other information, and services related to the maintenance of
shareholder accounts.
ALL FUNDS __ The Glass-Steagall Act and other applicable laws prohibit
Federally chartered or supervised banks from engaging in certain aspects
of the business of issuing, underwriting, selling and/or distributing
securities. Accordingly, banks will be engaged to act as Service Agents
only to perform administrative and shareholder servicing functions. While
the matter is not free from doubt, each Fund's Board believes that such
laws should not preclude a bank from acting as a Service Agent. However,
judicial or administrative decisions or interpretations of such laws, as
well as changes in either Federal or state statutes or regulations relating
to the permissible activities of banks or their subsidiaries or affiliates,
could prevent a bank from continuing to perform all or a part of its
servicing activities. If a bank were prohibited from so acting, its
shareholder clients would be permitted to remain Fund shareholders and
alternative means for continuing the servicing of such shareholders would
be sought. In such event, changes in the operation of the Fund might occur
and shareholders serviced by such bank might no longer be able to avail
themselves of any automatic investment or other services then being
provided by such bank. No Fund expects that shareholders would suffer any
adverse financial consequences as a result of any of these occurrences.
DIVIDENDS, DISTRIBUTIONS AND TAXES
Each Fund ordinarily declares dividends from net investment income on
each day that the New York Stock Exchange is open for business. Earnings
for Saturdays, Sundays and holidays are declared as dividends on the next
business day. Dividends usually are paid on the last business (calendar day
in the case of the MONEY MARKET FUND) day of each month, and are
automatically reinvested in additional Fund shares at net asset value or,
at your option, paid in cash. With respect to the LONGER TERM FUNDS, Fund
shares begin earning income dividends on the day following the date of
purchase. If you redeem all shares in your account at any time during the
month, all dividends to which you are entitled will be paid to you along
with the proceeds of the redemption. Distributions from net realized
securities gains, if any, generally are declared and paid once a year, but
each Fund may make distributions on a more frequent basis to comply with
the distribution requirements of the Code, in all events in a manner
consistent with the provisions of the Investment Company Act of 1940. No
Fund will make distributions from net realized securities gains unless
capital loss carryovers, if any, have been utilized or have expired. You may
choose whether to receive distributions in cash or to reinvest in
additional Fund shares at net asset value. All expenses are accrued daily
and deducted before declaration of dividends to investors.
Except for dividends from Taxable Investments, each Fund anticipates
that substantially all dividends paid by it will not be subject to Federal,
New York State or New York City personal income taxes. To the extent
investors are obligated to pay state or local taxes outside of New York
State and New York City, dividends earned by an investment in a Fund may
represent taxable income. Dividends derived from Taxable Investments,
together with distributions from any net realized short-term securities
gains and all or a portion of any gain realized from the sale or other
disposition of certain market discount bonds, paid by a Fund are subject to
Federal income tax as ordinary income whether or not reinvested in
additional Fund shares. Distributions from net realized long-term
securities gains of each Fund generally are taxable as long-term capital
gains for Federal income tax purposes if you are a citizen or resident of
the United States. The Code provides that the net capital gain of an
individual generally will not be subject to Federal income tax at a rate in
excess of 28%. Under the Code, interest on indebtedness incurred or
continued to purchase or carry Fund shares which is deemed to relate to
exempt-interest dividends is not deductible. No dividend paid by a Fund
will qualify for the dividends received deduction allowable to certain U.S.
corporations.
Page 28
Although all or a substantial portion of the dividends paid by a Fund may
be excluded by shareholders from their gross income for Federal income
tax purposes, each Fund may purchase specified private activity bonds, the
interest from which may be (i) a preference item for purposes of the
alternative minimum tax, (ii) a component of the "adjusted current
earnings" preference item for purposes of the corporate alternative
minimum tax as well as a component in computing the corporate
environmental tax or (iii) a factor in determining the extent to which a
shareholder's Social Security benefits are taxable. If a Fund purchases
such securities, the portion of its dividends related thereto will not
necessarily be tax exempt to an investor who is subject to the alternative
minimum tax and/or tax on Social Security benefits and may cause an
investor to be subject to such taxes.
Notice as to the tax status of your dividends and distributions will be
mailed to you annually. You also will receive periodic summaries of your
account which will include information as to dividends and distributions
from securities gains, if any, paid during the year. These statements set
forth the dollar amount of income exempt from Federal tax and the dollar
amount, if any, subject to Federal tax. These dollar amounts will vary
depending on the size and length of time of your investment in a Fund. If a
Fund pays dividends derived from taxable income, it intends to designate
as taxable the same percentage of the day's dividend as the actual taxable
income earned on that day bears to total income earned on that day. Thus,
the percentage of the dividend designated as taxable, if any, may vary
from day to day.
Federal regulations generally require that each Fund withhold ("backup
withholding") and remit to the U.S. Treasury 31% of taxable dividends,
distributions from net realized securities gains of the Fund and, in the
case of a LONGER TERM FUND, the proceeds of a redemption, regardless of
the extent to which gain or loss may be realized, paid to a shareholder if
such shareholder fails to certify either that the TIN furnished in
connection with opening an account is correct, or that such shareholder
has not received notice from the IRS of being subject to backup
withholding as a result of a failure to properly report taxable dividend or
interest income on a Federal income tax return. Furthermore, the IRS may
notify a Fund to institute backup withholding if the IRS determines that a
shareholder's TIN is incorrect or if a shareholder has failed to properly
report taxable dividend and interest income on a Federal income tax
return.
A TIN is either the Social Security number or employer identification
number of the record owner of the account. Any tax withheld as a result of
backup withholding does not constitute an additional tax imposed on the
record owner of the account, and may be claimed as a credit on the record
owner's Federal income tax return.
Management of each Fund believes the Fund has qualified for the fiscal
year ended May 31, 1994 as a "regulated investment company" under the
Code. Each Fund intends to continue to so qualify as long as such
qualification is in the best interests of its respective shareholders. Such
qualification relieves a Fund of any liability for Federal income tax to the
extent its earnings are distributed in accordance with applicable
provisions of the Code. Each Fund is subject to a non-deductible 4% excise
tax, measured with respect to certain undistributed amounts of taxable
investment income and capital gains.
You should consult your tax adviser regarding specific questions as to
Federal, state or local taxes.
GENERAL INFORMATION
MONEY MARKET FUND AND INTERMEDIATE BOND FUND. The MONEY MARKET
FUND and INTERMEDIATE BOND FUND were organized as unincorporated
business trusts under the laws of the Commonwealth of Massachusetts
pursuant to a separate Agreement and Declaration of Trust (collectively,
the "Trust Agreements"), dated February 16, 1987. The MONEY MARKET
FUND commenced operations on June 9, 1987, and the INTERMEDIATE BOND
FUND commenced operations on June 12, 1987. Each such Fund is
authorized to issue an unlimited number of shares of beneficial interest,
par value $.001 per share. Each share has one vote.
Page 29
Under Massachusetts law, shareholders could, under certain
circumstances, be held personally liable for the obligations of the Fund of
which they are shareholders. However, the Trust Agreements disclaim
shareholder liability for acts or obligations of the Funds and require that
notice of such disclaimer be given in each agreement, obligation or
instrument entered into or executed by the Fund or a Trustee. The Trust
Agreements provide for indemnification from the respective Fund's
property for all losses and expenses of any shareholder held personally
liable for the obligations of the Fund. Thus, the risk of a shareholder
incurring financial loss on account of a shareholder liability is limited to
circumstances in which the Fund itself would be unable to meet its
obligations, a possibility which management believes is remote. Upon
payment of any liability incurred by a Fund, the shareholder paying such
liability will be entitled to reimbursement from the general assets of the
Fund. The Trustees of each Fund intend to conduct the operations of the
Fund in such a way so as to avoid, as far as possible, ultimate liability of
the shareholders for liabilities of the Fund. As discussed under
"Management of the Funds" in the Statement of Additional Information,
each Fund ordinarily will not hold shareholder meetings; however,
shareholders under certain circumstances may have the right to call a
meeting of shareholders for the purpose of voting to remove Trustees.
BOND FUND. The BOND FUND was incorporated under Maryland law on April
26, 1983, and commenced operations on July 26, 1983. The BOND FUND is
authorized to issue 300 million shares of Common Stock, par value $.01
per share. Each share has one vote.
Unless otherwise required by the Investment Company Act of 1940,
ordinarily it will not be necessary for the Fund to hold annual meetings of
shareholders. As a result, Fund shareholders may not consider each year
the election of Directors or the appointment of auditors. However,
pursuant to the Fund's By-Laws, the holders of at least 10% of the shares
outstanding and entitled to vote may require the Fund to hold a special
meeting of shareholders for purposes of removing a Director from office
and the holders of at least 25% of such shares may require the Fund to
hold a special meeting of shareholders for any other purpose. Fund
shareholders may remove a Director by the affirmative vote of a majority
of the Fund's outstanding voting shares. In addition, the Board of Directors
will call a meeting of shareholders for the purpose of electing Directors
if, at any time, less than a majority of the Directors then holding office
have been elected by shareholders.
ALL FUNDS. Although each Fund is offering only its own shares, it is
possible that a Fund might become liable for any misstatement in this
Prospectus about another Fund. Each Fund's Board has considered this
factor in approving the use of this single combined Prospectus.
The Transfer Agent maintains a record of your ownership and will send
confirmations and statements of account.
Shareholder inquiries may be made to your Service Agent or by writing
to the Fund at 144 Glenn Curtiss Boulevard, Uniondale, New York 11556-
0144, or by calling toll free 1-800-645-6561.
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR MAKE
ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS AND IN EACH FUND'S OFFICIAL SALES LITERATURE IN
CONNECTION WITH THE OFFER OF THE FUND'S SHARES, AND, IF GIVEN OR
MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE
RELIED UPON AS HAVING BEEN AUTHORIZED BY A FUND. AS TO EACH FUND,
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER IN ANY STATE IN
WHICH, OR TO ANY PERSON TO WHOM, SUCH OFFERING MAY NOT LAWFULLY BE
MADE.
Page 30
DREYFUS
NEW YORK
TAX EXEMPT
FUNDS
COMBINED PROSPECTUS FOR
DREYFUS NEW YORK TAX EXEMPT
MONEY MARKET FUND
DREYFUS NEW YORK TAX EXEMPT
INTERMEDIATE BOND FUND
DREYFUS NEW YORK TAX EXEMPT
BOND FUND, INC.
(LION LOGO)
(COPYRIGHT LOGO) DRYEFUS SERVICE CORPORATION, 1994
DISTRIBUTOR
NYTEFP3072594
DREYFUS NEW YORK TAX EXEMPT FUNDS
COMBINED PART B
(STATEMENT OF ADDITIONAL INFORMATION)
FOR
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
JULY 25, 1994
This Statement of Additional Information, which is not a prospectus,
supplements and should be read in conjunction with the current Combined
Prospectus of Dreyfus New York Tax Exempt Money Market Fund (the "Money
Market Fund"), Dreyfus New York Tax Exempt Intermediate Bond Fund (the
"Intermediate Bond Fund"), and Dreyfus New York Tax Exempt Bond Fund, Inc.
(the "Bond Fund")(collectively, the "Funds"), dated July 25, 1994, as it may
be revised from time to time. To obtain a copy of the Prospectus, please
write to the Funds at 144 Glenn Curtiss Boulevard, Uniondale, New York
11556-0144, or call toll free 1-800-645-6561.
The Dreyfus Corporation (the "Manager") serves as each Fund's
investment adviser.
Dreyfus Service Corporation (the "Distributor"), a wholly-owned
subsidiary of the Manager, is the distributor of each Fund's shares.
Each Fund is a separate entity with a separate portfolio. The
operations and investment results of one Fund are unrelated to those of each
other Fund. This combined Statement of Additional Information has been
prepared for your convenience to provide you the opportunity to consider
three investment choices in one document.
TABLE OF CONTENTS
Page
Investment Objective and Management Policies. . . . . . . . .B-2
Management of the Funds . . . . . . . . . . . . . . . . . . .B-12
Management Agreements . . . . . . . . . . . . . . . . . . . .B-15
Purchase of Shares. . . . . . . . . . . . . . . . . . . . . .B-18
Service Plan and Shareholder Services Plans . . . . . . . . .B-19
Redemption of Shares. . . . . . . . . . . . . . . . . . . . .B-20
Shareholder Services. . . . . . . . . . . . . . . . . . . . .B-22
Determination of Net Asset Value. . . . . . . . . . . . . . .B-25
Portfolio Transactions. . . . . . . . . . . . . . . . . . . .B-26
Dividends, Distributions and Taxes. . . . . . . . . . . . . .B-27
Performance Information . . . . . . . . . . . . . . . . . . .B-27
Information About the Funds . . . . . . . . . . . . . . . . .B-30
Custodian, Transfer and Dividend Disbursing Agent,
Counsel and Independent Auditors . . . . . . . . . . . .B-30
Appendix A. . . . . . . . . . . . . . . . . . . . . . . . . .B-31
Appendix B. . . . . . . . . . . . . . . . . . . . . . . . . .B-45
Financial Statements and Reports of Independent Auditors
Money Market Fund. . . . . . . . . . . . . . . . . . . .B-53
Intermediate Bond Fund . . . . . . . . . . . . . . . . .B-61
Bond Fund. . . . . . . . . . . . . . . . . . . . . . . .B-72
INVESTMENT OBJECTIVE AND MANAGEMENT POLICIES
The following information supplements and should be read in conjunction
with the section in the Prospectus entitled "Description of the Funds."
Portfolio Securities
The average distribution of investments (at value) in Municipal
Obligations by ratings for the fiscal year ended May 31, 1994, computed on a
monthly basis, for each Fund was as follows:
<TABLE>
Moody's Standard & Fitch
Investors Poor's Investors
Service, Inc. Corporation Service, Inc. Percentage of Value
("Moody's") or ("S&P") or ("Fitch") Money Intermediate
Market Fund Bond Fund Bond Fund
<S> <C> <C> <C> <C> <C>
Aaa AAA AAA 0.9% 16.9% 14.1%
Aa AA AA N/A 19.1% 30.9%
A A A N/A 28.4% 30.5%
Baa BBB BBB N/A 29.9% 21.3%
VMIG1/MIG1,P-1 SP-1,A-1 F-1 88.9%* 1.7%* 2.1%*
MIG2 SP-2 F-2 N/A 0.0% 0.0%
Not Rated Not Rated Not Rated 10.2% 4.0%** 1.1%***
----- ------ --------
100.0% 100.0% 100.0%
====== ====== ========
</TABLE>
Municipal Obligations. The term "Municipal Obligations"
generally includes debt obligations issued to obtain funds for various
public purposes, including the construction of a wide range of public
facilities such as airports, bridges, highways, housing, hospitals,
mass transportation, schools, streets and water and sewer works.
Other public purposes for which Municipal Obligations may be issued
include refunding outstanding obligations, obtaining funds for general
operating expenses and lending such funds to other public institutions
and facilities. In addition, certain types of industrial development
bonds are issued by or on behalf of public authorities to obtain funds
to provide for the construction, equipment, repair or improvement of
privately operated housing facilities, sports facilities, convention
or trade show facilities, airport, mass transit, industrial, port or
parking facilities, air or water pollution control facilities and
certain local facilities for water supply, gas, electricity, or sewage
or solid waste disposal; the interest paid on such obligations may be
exempt from Federal income tax, although current tax laws place
substantial limitations on the size of such issues. Such obligations
are considered to be Municipal Obligations if the interest paid
thereon qualifies as exempt from Federal income tax in the opinion of
bond counsel to the issuer. There are, of course, variations in the
security of Municipal Obligations, both within a particular
classification and between classifications.
- ------------
* Includes notes rated within the highest grades by Moody's, S&P or Fitch,
which, together with Municipal Obligations rated Baa/BBB, are taken into
account at the time of a purchase to ensure that the portfolios of the
INTERMEDIATE BOND FUND and BOND FUND (collectively, the "LONGER TERM FUNDS")
meet the 80% minimum quality standard discussed in the Prospectus.
** Includes securities comprising 4.0% of the INTERMEDIATE BOND FUND'S net
assets which, while not rated, have been determined by the Manager to be of
comparable quality to securities in the following rating categories: Aa/AA
(1.1%) and Baa/BBB (2.9%).
*** Includes securities comprising 1.1% of the BOND FUND'S net assets which,
while not rated, have been determined by the Manager to be of comparable
quality to securities in the following rating catagories: Aaa/AAA (1.5%)
and Baa/BBB (.6%).
Floating and variable rate demand notes and bonds are tax exempt
obligations normally having stated maturities in excess of one year,
but which permit the holder to demand payment of principal at any time
or at specified intervals. The issuer of such obligations normally
has a corresponding right, after a given period, to prepay in its
discretion the outstanding principal amount of the obligation plus
accrued interest upon a specified number of days' notice to the
holders thereof. The interest rate on a floating rate demand
obligation is based on a known lending rate, such as a bank's prime
rate, and is adjusted automatically each time such rate is adjusted.
The interest rate on a variable rate demand obligation is adjusted
automatically at specified intervals.
The yields on Municipal Obligations are dependent on a variety of
factors, including general economic and monetary conditions, money
market factors, conditions in the Municipal Obligations market, size
of a particular offering, maturity of the obligation, and rating of
the issue. The imposition of a Fund's management fee, as well as
other operating expenses, including fees paid under a Service Plan or
Shareholder Services Plan, will have the effect of reducing the yield
to investors in that Fund.
Municipal lease obligations or installment purchase contract
obligations (collectively, "lease obligations") have special risks not
normally associated with Municipal Obligations. Although lease
obligations do not constitute general obligations of the municipality
for which the municipality's taxing power is pledged, a lease
obligation ordinarily is backed by the municipality's covenant to
budget for, appropriate and make the payments due under the lease
obligation. However, certain lease obligations contain
"non-appropriation" clauses which provide that the municipality has no
obligation to make lease or installment purchase payments in future
years unless money is appropriated for such purpose on a yearly basis.
Although "non-appropriation" lease obligations are secured by the
leased property, disposition of the property in the event of
foreclosure might prove difficult. The Money Market Fund will invest
only in those lease obligations that (1) 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 lease obligation was rated only by one such
organization); or (2) if unrated, are purchased principally from the
issuer or domestic banks or other responsible third parties, in each
case only if the seller shall have entered into an agreement with the
Money Market Fund providing that the seller or other responsible third
party will either remarket or repurchase the lease obligation within a
short period after demand by the Fund. The staff of the Securities
and Exchange Commission currently considers certain lease obligations
to be illiquid. Determination as to the liquidity of such securities
is made in accordance with guidelines established by each Fund's
Board. Pursuant to such guidelines, each Board has directed the
Manager to monitor carefully each Fund's investment in such securities
with particular regard to (1) the frequency of trades and quotes for
the lease obligation; (2) the number of dealers willing to purchase or
sell the lease obligation and the number of other potential buyers;
(3) the willingness of dealers to undertake to make a market in the
lease obligation; (4) the nature of the marketplace trades including
the time needed to dispose of the lease obligation, the method of
soliciting offers and the mechanics of transfer; and (5) such other
factors concerning the trading market for the lease obligation as the
Manager may deem relevant. In addition, in evaluating the liquidity
and credit quality of a lease obligation that is unrated, each Fund's
Board has directed the Manager to consider (a) whether the lease can
be cancelled; (b) what assurance there is that the assets represented
by the lease can be sold; (c) the strength of the lessee's general
credit (e.g., its debt, administrative, economic, and financial
characteristics); (d) the likelihood that the municipality will
discontinue appropriating funding for the leased property because the
property is no longer deemed essential to the operations of the
municipality (e.g., the potential for an "event of nonappropriation");
(e) the legal recourse in the event of failure to appropriate; and (f)
such other factors concerning credit quality as the Manager may deem
relevant. No Fund will invest more than 15% (10% in the case of the
Money Market Fund) of the value of its net assets in lease obligations
that are illiquid and in other illiquid securities.
The Money Market Fund will not purchase tender option bonds
unless (a) the demand feature applicable thereto is exercisable by the
Fund within 13 months of the date of such purchase upon no more than
30 days' notice and thereafter is exercisable by the Fund no less
frequently than annually upon no more than 30 days' notice and (b) at
the time of such purchase, the Manager reasonably expects (i) based
upon its assessment of current and historical interest rate trends,
that prevailing short-term tax exempt rates will not exceed the stated
interest rate on the underlying Municipal Obligations at the time of
the next tender fee adjustment and (ii) that the circumstances which
might entitle the grantor of a tender option to terminate the tender
option would not occur prior to the time of the next tender
opportunity. At the time of each tender opportunity, the Fund will
exercise the tender option with respect to any tender option bonds
unless the Manager reasonably expects, (x) based upon its assessment
of current and historical interest rate trends, that prevailing short-
term tax exempt rates will not exceed the stated interest rate on the
underlying Municipal Obligations at the time of the next tender fee
adjustment, and (y) that the circumstances which entitle the grantor
of a tender option to terminate the tender option would not occur
prior to the time of the next tender opportunity. The Fund will
exercise the tender feature with respect to tender option bonds, or
otherwise dispose of its tender option bonds, prior to the time the
tender option is scheduled to expire pursuant to the terms of the
agreement under which the tender option is granted. The Money Market
Fund otherwise will comply with the provisions of Rule 2a-7 in
connection with the purchase of tender option bonds, including,
without limitation, the requisite determination by the Money Market
Fund's Board of Trustees that the tender option bonds in question meet
the quality standards described in Rule 2a-7, which, in the case of a
tender option bond subject to a conditional demand feature, would
include a determination that the security has received both the
required short-term and long-term quality rating or is determined to
be of comparable quality. In the event of a default of the Municipal
Obligation underlying a tender option bond, or the termination of the
tender option agreement, the Money Market Fund would look to the
maturity date of the underlying security for purposes of compliance
with Rule 2a-7 and, if its remaining maturity was greater than 13
months, the Fund would sell the security as soon as would be
practicable.
Each Fund will purchase tender option bonds only when the Fund is
satisfied that the custodial and tender option arrangements will not
adversely affect the tax exempt status of the underlying Municipal
Obligations and that payment of any tender fees will not have the
effect of creating taxable income for such Fund. Based on the tender
option bond agreement, each Fund expects to be able to value the
tender option bond at par; however, the value of the instrument will
be monitored to assure that it is valued at fair value.
Ratings of Municipal Obligations. If, subsequent to being
purchased by the Money Market Fund, (a) an issue of rated Municipal
Obligations ceases to be rated in the highest rating category by at
least two rating organizations (or one rating organization if the
instrument was rated by only one organization), or the Money Market
Fund's Board determines that it is no longer of comparable quality; or
(b) the Manager becomes aware that any portfolio security not so
highly rated or any unrated security has been given a rating by any
rating organization below the rating organization's second highest
rating category, the Money Market Fund's Board will reassess promptly
whether such security presents minimal credit risk and will cause the
Fund to take such action as it determines is in the best interest of
the Fund and its shareholders, provided that the reassessment required
by clause (b) is not required if the portfolio security is disposed of
or matures within five business days of the Manager becoming aware of
the new rating and the Fund's Board is subsequently notified of the
Manager's actions. Subsequent to being purchased by the Longer Term
Funds, an issue of rated Municipal Obligations may cease to be rated
or its rating may be reduced below the minimum required for purchase
by such Funds. Neither event will require the sale of such Municipal
Obligations by a Longer Term Fund, but the Manager will consider such
event in determining whether the Fund should continue to hold the
Municipal Obligations.
To the extent the ratings by Moody's, S&P or Fitch for Municipal
Obligations may change as a result of changes in such organizations or
their rating systems, the Funds will attempt to use comparable ratings
as standards for its investments in accordance with the investment
policies contained in the Prospectus and this Statement of Additional
Information. The ratings of Moody's, S&P and Fitch represent their
opinions as to the quality of the Municipal Obligations which they
undertake to rate. It should be emphasized, however, that ratings are
relative and subjective and are not absolute standards of quality.
Although these ratings may be an initial criterion for selection of
portfolio investments, the Manager also will evaluate these securities
and the creditworthiness of the issuers of such securities.
Taxable Investments. Securities issued or guaranteed by the U.S.
Government or its agencies or instrumentalities include U.S. Treasury
securities, which differ in their interest rates, maturities and times
of issuance. Treasury Bills have initial maturities of one year or
less; Treasury Notes have initial maturities of one to ten years; and
Treasury Bonds generally have initial maturities of greater than ten
years. Some obligations issued or guaranteed by U.S. Government
agencies and instrumentalities, for example, Government National
Mortgage Association pass-through certificates, are supported by the
full faith and credit of the U.S. Treasury; others, such as those of
the Federal Home Loan Banks, by the right of the issuer to borrow from
the Treasury; others, such as those issued by the Federal National
Mortgage Association, by discretionary authority of the U.S.
Government to purchase certain obligations of the agency or
instrumentality; and others, such as those issued by the Student Loan
Marketing Association, only by the credit of the agency or
instrumentality. These securities bear fixed, floating or variable
rates of interest. Interest may fluctuate based on generally
recognized reference rates or the relationship of rates. While the
U.S. Government provides financial support to such U.S. Govern-
ment-sponsored agencies or instrumentalities, no assurance can be
given that it will always do so, since it is not so obligated by law.
A Fund will invest in such securities only when it is satisfied that
the credit risk with respect to the issuer is minimal.
Commercial paper consists of short-term, unsecured promissory
notes issued to finance short-term credit needs.
Certificates of deposit are negotiable certificates representing
the obligation of a bank to repay funds deposited with it for a
specified period of time.
Time deposits are non-negotiable deposits maintained in a banking
institution for a specified period of time (in no event longer than
seven days) at a stated interest rate. Investments in time deposits
generally are limited to London branches of domestic banks that have
total assets in excess of one billion dollars. Time deposits which
may be held by a Fund will not benefit from insurance from the Bank
Insurance Fund or the Savings Association Insurance Fund administered
by the Federal Deposit Insurance Corporation.
Bankers' acceptances are credit instruments evidencing the
obligation of a bank to pay a draft drawn on it by a customer. These
instruments reflect the obligation both of the bank and of the drawer
to pay the face amount of the instrument upon maturity. Other short-
term bank obligations may include uninsured, direct obligations
bearing fixed, floating or variable interest rates.
Repurchase agreements involve the acquisition by a Fund of an
underlying debt instrument subject to an obligation of the seller to
repurchase, and the Fund to resell, the instrument at a fixed price,
usually not more than one week after its purchase. The Fund's
custodian or sub-custodian will have custody of, and will hold in a
segregated account, securities acquired by the Fund under a repurchase
agreement. Repurchase agreements are considered by the staff of the
Securities and Exchange Commission to be loans by the Fund that enters
into them. In an attempt to reduce the risk of incurring a loss on a
repurchase agreement, a Fund will enter into repurchase agreements
only with domestic banks with total assets in excess of one billion
dollars or primary government securities dealers reporting to the
Federal Reserve Bank of New York, with respect to securities of the
type in which that Fund may invest, and will require that additional
securities be deposited with it if the value of the securities
purchased should decrease below resale price. The Manager will
monitor on an ongoing basis the value of the collateral to assure that
it always equals or exceeds the repurchase price. Certain costs may
be incurred by the Fund in connection with the sale of the securities
if the seller does not repurchase them in accordance with the
repurchase agreement. In addition, if bankruptcy proceedings are
commenced with respect to the seller of the securities, realization on
the securities by the Fund may be delayed or limited. Each Fund will
consider on an ongoing basis the creditworthiness of the institutions
with which it enters into repurchase agreements.
Risk Factors
Lower Rated Bonds. This section applies only to the Longer Term
Funds. Lower rated bonds as described herein are not eligible
investments for the Money Market Fund. Each Longer Term Fund is
permitted to invest in securities rated below Baa by Moody's and below
BBB by S&P or Fitch. Such bonds, though higher yielding, are
characterized by risk. See in the Prospectus "Investment Objective
and Management Policies--Risk Factors--Lower Rated Bonds" for a
discussion of certain risks and "Appendix B" for a general description
of Moody's, S&P and Fitch ratings of Municipal Obligations. Although
ratings may be useful in evaluating the safety of interest and
principal payments, they do not evaluate the market value risk of
these bonds. Each Fund will rely on the Manager's judgment, analysis
and experience in evaluating the creditworthiness of an issuer. In
this evaluation, the Manager will take into consideration, among other
things, the issuer's financial resources, its sensitivity to economic
conditions and trends, the quality of the issuer's management and
regulatory matters. It also is possible that a rating agency might
not timely change the rating on a particular issue to reflect
subsequent events. As stated above, once the rating of a bond in a
Fund's portfolio has been changed, the Manager will consider all
circumstances deemed relevant in determining whether the Fund should
continue to hold the bond.
Investors should be aware that the market values of many of these
bonds tend to be more sensitive to economic conditions than are higher
rated securities. These bonds are considered by Moody's, S&P and
Fitch, on balance, as predominantly speculative with respect to
capacity to pay interest and repay principal in accordance with the
terms of the obligation and generally will involve more credit risk
than securities in the higher rating categories.
Because there is no established retail secondary market for many
of these securities, each Fund anticipates that such securities could
be sold only to a limited number of dealers or institutional
investors. To the extent a secondary trading market for these bonds
does exist, it generally is not as liquid as the secondary market for
higher rated securities. The lack of a liquid secondary market may
have an adverse impact on market price and yield and a Fund's ability
to dispose of particular issues when necessary to meet its liquidity
needs or in response to a specific economic event such as a
deterioration in the creditworthiness of the issuer. The lack of a
liquid secondary market for certain securities also may make it more
difficult for a Fund to obtain accurate market quotations for purposes
of valuing its portfolio and calculating its net asset value. Adverse
publicity and investor perceptions, whether or not based on
fundamental analysis, may decrease the values and liquidity of these
securities. In such cases, judgment may play a greater role in
valuation because less reliable, objective data may be available.
These bonds may be particularly susceptible to economic
downturns. It is likely that any economic recession could severely
disrupt the market for such securities and may have an adverse impact
on the value of such securities. In addition, it is likely that any
such economic downturn could adversely affect the ability of the
issuers of such securities to repay principal and pay interest thereon
and increase the incidence of default of such securities.
Each Fund may acquire these bonds during an initial offering.
Such securities may involve special risks because they are new issues.
Neither Fund has any arrangements with the Distributor or any other
persons concerning the acquisition of such securities, and the Manager
will review carefully the credit and other characteristics pertinent
to such new issues.
Lower rated zero coupon securities, in which each Fund may invest
up to 5% of its respective total assets, involve special
consideration. The credit risk factors pertaining to lower rated
securities also apply to lower rated zero coupon bonds. Such zero
coupon bonds carry an additional risk in that, unlike bonds which pay
interest throughout the period to maturity, a Fund will realize no
cash until the cash payment date unless a portion of such securities
are sold and, if the issuer defaults, the Fund may obtain no return at
all on its investment. See "Dividends, Distributions and Taxes."
Investing in New York Municipal Obligations. Each investor
should consider carefully the special risks inherent in the investment
in New York Municipal Obligations by each Fund. These risks result
from the financial condition of New York State and certain of its
public bodies and municipalities, including New York City. Beginning
in early 1975, New York State, New York City and other State entities
faced serious financial difficulties which jeopardized the credit
standing and impaired the borrowing abilities of such entities and
contributed to high interest rates on, and lower market prices for,
debt obligations issued by them. A recurrence of such financial
difficulties or a failure of certain financial recovery programs could
result in defaults or declines in the market values of various New
York Municipal Obligations in which the Fund may invest. If there
should be a default or other financial crisis relating to New York
State, New York City, a State or City agency, or a State municipality,
the market value and marketability of outstanding New York Municipal
Obligations in the Fund's portfolio and the interest income to the
Fund could be adversely affected. Moreover, the significant slowdown
in the New York and regional economies in the early 1990s added
substantial uncertainty to estimates of the State's tax revenues,
which, in part, caused the State to overestimate its General Fund tax
receipts for the 1992 fiscal year by $575 million. The 1992 fiscal
year was the fourth consecutive year in which the State incurred a
cash-basis operating deficit in the General Fund and issued deficit
notes. The State's 1993 fiscal year, however, was characterized by
national and regional economies that performed better than projected.
After reflecting a 1993 year-end deposit to the refund reserve account
of $671 million, reported 1993 General Fund receipts were $45 million
higher than originally projected in April 1992. If not for that year-
end transaction, General Fund receipts would have been $716 million
higher than originally projected. There can be no assurance that New
York will not face substantial potential budget gaps in future years.
In 1990, S&P and Moody's lowered their ratings of the State's general
obligation debt from AA- to A and from A1 to A, respectively, and
short-term notes from SP-1+ to SP-1 and from MIG-1 to MIG-2,
respectively. In January 1992, Moody's lowered from A to Baa1 the
ratings on certain appropriation-backed debt of New York State and its
agencies. New York State's general obligation, state guaranteed and
New York State Local Government Assistance Corporation bonds continue
to be rated A by Moody's. In addition, in January 1992, S&P lowered
from A to A- the ratings of New York State general obligation bonds
and stated that it continued to assess the ratings outlook as
negative. The ratings of various agency debt, state moral
obligations, contractual obligations, lease purchase obligations and
state guarantees also were lowered. In February 1991, Moody's lowered
its rating on New York City's general obligation bonds from A to Baa1.
The rating changes reflect the rating agencies' concerns about the
financial condition of New York State and City, the heavy debt load of
the State and City, and economic uncertainties in the region.
Investors should review "Appendix A" which more fully sets forth these
and other risk factors.
Investment Restrictions
Money Market Fund. The Money Market Fund has adopted the
following investment restrictions as fundamental policies which cannot
be changed without approval by the holders of a majority (as defined
in the Investment Company Act of 1940 (the "Act")) of the Money Market
Fund's outstanding voting shares. The Money Market Fund may not:
1. Purchase securities other than Municipal Obligations and
Taxable Investments as those terms are defined above and in the
Prospectus.
2. Borrow money, except from banks for temporary or emergency
(not leveraging) purposes in an amount up to 10% 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 of the
Money Market Fund exceed 5% of the value of the Money Market Fund's
total assets, it will not make any additional investments.
3. Pledge, hypothecate, mortgage or otherwise encumber its
assets, except in an amount up to 10% of the value of its total assets, but
only to secure borrowings for temporary or emergency purposes.
4. Sell securities short or purchase securities on margin.
5. Underwrite the securities of other issuers, except that the
Money Market Fund may bid separately or as part of a group for the
purchase of Municipal Obligations directly from an issuer for its own
portfolio to take advantage of the lower purchase price available.
6. Purchase securities subject to restrictions on disposition
under the Securities Act of 1933 (so called "restricted securities").
The Money Market Fund may not enter into repurchase agreements providing for
settlement in more than seven days after notice or purchase securities which are
not readily marketable (which securities would include participation
interests that are not subject to the demand feature described in the
Prospectus, and floating and variable rate demand obligations as to which it
cannot exercise the demand feature as described in the Prospectus on less than
seven days' notice), if, in the aggregate, more than 10% of its net assets
would be so invested. The Money Market Fund may not invest in time deposits
maturing in more than seven days, and time deposits maturing from two
business days through seven calendar days may not exceed 10% of its net assets.
7. Purchase or sell real estate, real estate investment trust
securities, commodities or commodity contracts, or oil and gas interests, but
this shall not prevent the Fund from investing in Municipal Obligations
secured by real estate or interests therein.
8. Make loans to others except through the purchase of qualified
debt obligations and the entry into repurchase agreements referred to above
and in the Prospectus.
9. Invest more than 25% of its total assets in the securities of
issuers in any single industry; provided that there shall be no such
limitation on the purchase of Municipal Obligations and, for temporary defensive
purposes, securities issued by domestic banks and obligations issued or
guaranteed by the U.S. Government, its agencies or instrumentalities.
10. Purchase more than 10% of the voting securities of any issuer
or invest in companies for the purpose of exercising control.
11. Invest in securities of other investment companies, except as
they may be acquired as part of a merger, consolidation or acquisition of
assets.
Intermediate Bond Fund and Bond Fund. Each Longer Term Fund has
adopted investment restrictions numbered 1 through 7 as fundamental
policies which cannot be changed, as to a Fund, without approval by
the holders of a majority (as defined in the Act) of such Fund's
outstanding voting shares. Investment restrictions numbered 8 through
12 are non-fundamental policies and may be changed, as to a Longer
Term Fund, by vote of a majority of such Fund's Board members at any
time. Neither Longer Term Fund may:
1. Invest more than 25% of its total assets in the
securities of issuers in any single industry; provided that there shall be no
such limitation on the purchase of Municipal Obligations and, for temporary
defensive purposes, securities issued by domestic banks and obligations issued
or guaranteed by the U.S. Government, its agencies or instrumentalities.
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. For purposes of this investment restriction, the entry into
options, forward contracts, futures contracts, including those relating to
indexes, and options on futures contracts or indexes shall not constitute
borrowing.
3. Purchase or sell real estate, commodities or commodity
contracts, or oil and gas interests, but this shall not prevent the Fund from
investing in Municipal Obligations secured by real estate or interests
therein, or prevent the Fund from purchasing and selling options, forward
contracts, futures contracts, including those relating to indexes, and options
on futures contracts or indexes.
4. Underwrite the securities of other issuers, except that
the Fund may bid separately or as part of a group for the purchase of
Municipal Obligations directly from an issuer for its own portfolio to
take advantage of the lower purchase price available, and except to the
extent the Fund may be deemed an underwriter under the Securities Act of
1933, as amended, by virtue of disposing of portfolio securities.
5. Make loans to others, except through the purchase of
debt obligations and the entry into repurchase agreements;
however, the Fund may lend its portfolio securities in an amount not to exceed
33 1/3% of the value of its total assets. Any loans of portfolio
securities will be made according to guidelines established by the Securities
and Exchange Commission and the Fund's Board.
6. Issue any senior security (as such term is defined in
Section 18(f) of the Act), except to the extent that the activities permitted
in Investment Restrictions numbered 2, 3 and 10 may be deemed to give rise
to a senior security.
7. Sell securities short or purchase securities on margin,
but the Fund may make margin deposits in connection with transactions in
options, forward contracts, futures contracts, including those
relating to indexes, and options on futures contracts or indexes.
8. Purchase securities other than Municipal Obligations
and Taxable Investments and those arising out of transactions in futures
and options or as otherwise provided in the Prospectus.
9. Invest in securities of other investment companies, except
to the extent permitted under the Act.
10. Pledge, hypothecate, mortgage or otherwise encumber its
assets, except to the extent necessary to secure borrowings for
temporary or emergency purposes 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.
11. 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 Prospectus, and floating and variable rate
demand obligations as to which the Fund cannot exercise the demand
feature as described in the Prospectus on less than seven days' notice
and as to which there is no secondary market), if, in the aggregate, more
than 15% of its net assets would be so invested.
12. Invest in companies for the purpose of exercising
control.
All Funds - For purposes of Investment Restriction No. 9 with
respect to the Money Market Fund, and Investment Restriction No. 1
with respect to the Longer Term Funds, industrial development bonds,
where the payment of principal and interest is the ultimate
responsibility of companies within the same industry, are grouped
together as an "industry." If a percentage restriction is adhered to
at the time of investment, a later increase or decrease in percentage
resulting from a change in values or assets will not constitute a
violation of such restriction.
Each Fund may make commitments more restrictive than the
respective restrictions listed above so as to permit the sale of such
Fund's shares in certain states. Should any Fund determine that a
commitment is no longer in the best interest of such Fund and its
shareholders, it reserves the right to revoke the commitment by
terminating the sale of its shares in the state involved.
MANAGEMENT OF THE FUNDS
Trustees and officers of the Money Market Fund and Intermediate
Bond Fund, and Directors and officers of the Bond Fund, together with
information as to their principal business occupations during at least
the last five years, are shown below. Each Board member who is deemed
to be an "interested person" of the Funds, as defined in the Act, is
indicated by an asterisk.
Trustees/Directors and Officers of the Funds. Each person listed
below, with the exception of David W. Burke who serves as a Trustee of
the Intermediate Bond Fund and as a Director of the Bond Fund only,
serves as a Trustee of the Money Market Fund and the Intermediate Bond
Fund, and as a Director of the Bond Fund.
*DAVID W. BURKE, Trustee/Director. Vice President and Chief
Administrative Officer of the Manager since October 1990, and a
director or trustee of other investment companies advised or
administered by the Manager. From 1977 to 1990, Mr. Burke was
involved in the management of national television news, as Vice
President and Executive Vice President of ABC News, and
subsequently as President of CBS News. His address is 200 Park
Avenue, New York, New York 10166.
SAMUEL CHASE, Trustee/Director. Since 1982, President of Samuel Chase
& Company, Ltd., and from 1983 to December 1989, Chairman of
Chase, Brown & Blaxall, Inc., economic consulting firms. His
address is 4410 Massachusetts Avenue, N.W., Suite 408,
Washington, D.C. 20016.
JONI EVANS, Trustee/Director. Senior Vice President of the William
Morris Agency. From September 1987 to May 1993, Executive Vice
President of Random House Inc. and, from January 1991 to May
1993, President and Publisher of Turtle Bay Books; from January
1987 to December 1990, Publisher of Random House-Adult Trade
Division; from September 1985 to September 1987, President of
Simon and Schuster - Trade Division. Her address is 1350 Avenue
of the Americas, New York, New York 10019.
*LAWRENCE M. GREENE, Trustee/Director. Legal Consultant to and
director of the Manager, Executive Vice President and a director
of the Distributor and an officer, director or trustee of other
investment companies advised or administered by the Manager. His
address is 200 Park Avenue, New York, New York 10166.
ARNOLD S. HIATT, Trustee/Director. Chairman of the Stride Rite
Charitable Foundation. From 1969 to June 1992, Chairman of
Board, President or Chief Executive Officer of The Stride Rite
Corporation, a multi-divisional footwear manufacturing and
retailing company. Mr. Hiatt is also a Director of the Cabot
Corporation. His address is 400 Atlantic Avenue, Boston,
Massachusetts 02110.
DAVID J. MAHONEY, Trustee/Director. President of David Mahoney
Ventures since 1983. From 1968 to 1983, he was Chairman and
Chief Executive Officer of Norton Simon, Inc., a producer of
consumer products and services. Mr. Mahoney is also a director
of National Health Laboratories, Inc., Bionaire Inc. and Good
Samaritan Health Systems, Inc. His address is 745 Fifth Street,
Suite 700, New York, New York 10151.
*RICHARD J. MOYNIHAN, Trustee/Director, President and Investment
Officer. An employee of the Manager and an officer, director or
trustee of other investment companies advised or administered by
the Manager. His address is 200 Park Avenue, New York, New York
10166.
BURTON N. WALLACK, Trustee/Director. President and co-owner of
Wallack Management Company, a real estate management company
managing real estate in the New York City area. His address is
18 East 64th Street, Suite 3D, New York, New York 10021.
The "non-interested" Board members are also trustees of Dreyfus
Massachusetts Municipal Money Market Fund, Dreyfus Massachusetts Tax
Exempt Bond Fund and Dreyfus Pennsylvania Municipal Money Market Fund,
and directors of Dreyfus BASIC Municipal Fund, Dreyfus California Tax
Exempt Bond Fund, Inc., Dreyfus Connecticut Municipal Money Market
Fund, Inc., Dreyfus GNMA Fund, Inc., Dreyfus Intermediate Municipal
Bond Fund, Inc., Dreyfus Michigan Municipal Money Market Fund, Inc.,
Dreyfus New Jersey Municipal Money Market Fund, Inc. and Dreyfus Ohio
Municipal Money Market Fund, Inc.
For so long as the Service Plan of the Intermediate Bond Fund, or
the Shareholder Services Plan of the Money Market Fund or Bond Fund,
respectively, described in the section captioned "Service Plan and
Shareholder Services Plans" remains in effect, the Board members of
such Fund who are not "interested persons" (as defined in the Act)
will be selected and nominated by the Board members who are not
"interested persons" of such Fund.
The Funds do not pay any remuneration to their respective
officers and Board members, other than fees and expenses to those
Board members who are not officers, directors, employees or holders of
5% or more of the outstanding voting securities of the Manager. For
each Fund's fiscal year ended May 31, 1994, such amounts for all such
Board members as a group totalled $11,735, $16,735 and $30,759 for the
Money Market Fund, Intermediate Bond Fund and Bond Fund, respectively.
Ordinarily, there will be no meetings of shareholders for the
purpose of electing Board members unless and until such time as less
than a majority of the Board members holding office have been elected
by shareholders, at which time the Board members then in office will
call a shareholders' meeting for the election of Board members. Under
the Act, shareholders of record of not less than two-thirds of the
outstanding shares of the Money Market Fund or Intermediate Bond Fund
may remove a Board member of such Fund through a declaration in
writing or by vote cast in person or by proxy at a meeting called for
that purpose. Under each of the Money Market Fund's and Intermediate
Bond Fund's Agreement and Declaration of Trust and under the Bond
Fund's By-Laws, the Board members are required to call a meeting of
shareholders for the purpose of voting upon the question of removal of
any such Board Member when requested in writing to do so by the
shareholders of record of not less than 10% of such Fund's outstanding
shares.
Officers of the Funds Not Listed Above - Each of the persons listed
below serves in the stated capacity for each Fund.
JOSEPH P. DARCY, Vice President and Investment Officer. Since May
1994, an employee of the Manager, and since July 1994, an
officer of other investment companies advised and administered by
the Manager. From October 1989 to May 1994, was a Vice
Presidentand Portfolio Manager for Merrill Lynch Asset
Management. Prior thereto, he worked in sales and marketing at
Chemical Bank.
A. PAUL DISDIER, Vice President and Investment Officer. An employee
of the Manager and an officer of other investment companies
advised and administered by the Manager.
KAREN M. HAND, Vice President and Investment Officer. An employee of
the Manager and an officer of other investment companies advised
and administered by the Manager.
STEPHEN C. KRIS, Vice President and Investment Officer. An employee
of the Manager and an officer of other investment companies
advised and administered by the Manager.
JILL C. SHAFFRO, Vice President and Investment Officer. An employee
of the Manager and an officer of other investment companies
advised and administered by the Manager.
L. LAWRENCE TROUTMAN, Vice President and Investment Officer. An
employee of the Manager and an officer of other investment
companies advised and administered by the Manager.
SAMUEL J. WEINSTOCK, Vice President and Investment Officer. An
employee of the Manager and an officer of other investment
companies advised and administered by the Manager.
MONICA S. WIEBOLDT, Vice President and Investment Officer. An
employee of the Manager and an officer of other investment
companies advised and administered by the Manager.
DANIEL C. MACLEAN, Vice President. Vice President and General Counsel
of the Manager, Secretary of the Distributor and an officer of
other investment companies advised or administered by the
Manager.
JEFFREY N. NACHMAN, Vice President - Financial. Vice President-Mutual
Fund Accounting of the Manager and an officer of other investment
companies advised or administered by the Manager.
JOHN J. PYBURN, Treasurer. Assistant Vice President of the Manager
and an officer of other investment companies advised or
administered by the Manager.
MARK N. JACOBS, Secretary. Secretary and Deputy General Counsel of
the Manager and an officer of other investment companies advised
or administered by the Manager.
GREGORY S. GRUBER, Controller. Senior Accounting Manager in the Fund
Accounting Department of the Manager and an officer of other
investment companies advised or administered by the Manager.
CHRISTINE PAVALOS, Assistant Secretary. Assistant Secretary of the
Manager, the Distributor and other investment companies advised
or administered by the Manager.
The address of each officer is 200 Park Avenue, New York, New
York 10166.
The Board members and officers of each Fund, as a group, owned
less than 1% of such Fund's shares outstanding on July 5, 1994.
The following persons are also officers and/or directors of the
Manager: Howard Stein, Chairman of the Board and Chief Executive
Officer; Julian M. Smerling, Vice Chairman of the Board of Directors;
Joseph S. DiMartino, President, Chief Operating Officer and a
director; Alan M. Eisner, Vice President and Chief Financial Officer;
Robert F. Dubuss, Vice President; Elie M. Genadry, Vice President--
Institutional Sales; Peter A. Santoriello, Vice President; Kirk V.
Stumpp, Vice President--New Product Development; Philip L. Toia, Vice
President; Katherine C. Wickham, Assistant Vice President--Human
Resources; Maurice Bendrihem, Controller; and Mandell L. Berman, Alvin
E. Friedman, Lawrence M. Greene, Abigail Q. McCarthy and David B.
Truman, directors.
MANAGEMENT AGREEMENTS
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "Management of
the Funds."
The Manager provides management services pursuant to separate
Management Agreements (respectively, the "Agreement") with each Fund.
As to each Fund, its Agreement is subject to annual approval by (i)
such Fund's Board, or (ii) vote of a majority (as defined in the Act)
of such Fund's outstanding voting securities, provided that in either
event the continuance of the Agreement also is approved by a majority
of such Fund's Board members who are not "interested persons" (as
defined in the Act) of the Fund or of the Manager, by vote cast in
person at a meeting called for the purpose of voting on such approval.
The Money Market Fund's Agreement is dated May 20, 1987, was last
approved by shareholders at a meeting of shareholders held on December
14, 1988 and was last approved by the Fund's Board, including a
majority of the Trustees who are not "interested persons" of any party
to the Agreement, at a meeting held on April 6, 1994.
The Intermediate Bond Fund's Agreement is dated May 20, 1987, was
approved by shareholders at the meeting of shareholders held on
January 25, 1989 and was last approved by the Fund's Board, including
a majority of the Trustees who are not "interested persons" of any
party to the Agreement, at a meeting held on April 6, 1994. The Bond
Fund's Agreement is dated June 15, 1983, was approved by shareholders
at a meeting of shareholders held on September 18, 1984 and was last
approved by the Fund's Board, including a majority of the Directors
who are not "interested persons" of any party to the Agreement, at a
meeting held on April 6, 1994. As to each Fund, its Agreement is
terminable without penalty, on 60 days' notice, by such Fund's Board
or by vote of the holders of a majority of its shares, or, upon not
less than 90 days' notice, by the Manager. Each Agreement will
terminate automatically, as to the relevant Fund, in the event of its
assignment (as defined in the Act).
The Manager manages each Fund's portfolio of investments in
accordance with the stated policies of the Fund, subject to the
approval of the Fund's Board. The Manager is responsible for
investment decisions and provides each Fund with Investment Officers
who are authorized by its Board to execute purchases and sales of
securities. Each Fund's Investment Officers are A. Paul Disdier,
Karen M. Hand, Stephen C. Kris, Richard J. Moynihan, Jill C. Shaffro,
L. Lawrence Troutman, Samuel J. Weinstock and Monica S. Wieboldt. The
Manager also maintains a research department with a professional staff
of portfolio managers and securities analysts who provide research
services for each Fund as well as for other funds advised by the
Manager. All purchases and sales are reported for the respective
Board's review at the meeting subsequent to such transactions.
All expenses incurred in the operation of a Fund are borne by
that Fund, except to the extent specifically assumed by the Manager.
The expenses borne by each Fund include: taxes, interest, brokerage
fees and commissions, if any, fees of Trustees/Directors who are not
officers, directors, employees or holders of 5% or more of the
outstanding voting securities of the Manager, Securities and Exchange
Commission fees, state Blue Sky qualification fees, advisory fees,
charges of custodians, transfer and dividend disbursing agents' fees,
certain insurance premiums, industry association fees, outside
auditing and legal expenses, costs of maintaining the Fund's
existence, costs of independent pricing services, costs attributable
to investor services including, without limitation, telephone and
personnel expenses, costs of shareholders' reports and meetings, costs
of preparing and printing prospectuses and statements of additional
information, and any extraordinary expenses. Pursuant to the Service
Plan of the Intermediate Bond Fund, such Fund bears expenses for
advertising, marketing and distributing the Fund's shares and
servicing shareholder accounts and bears the cost of preparing and
printing prospectuses and statements of additional information and
costs associated with implementing and operating such plan. Pursuant
to separate Shareholder Services Plans, the Money Market Fund and Bond
Fund bear certain allocated expenses for shareholder servicing. See
"Service Plan and Shareholder Services Plans."
The Manager pays the salaries of all officers and employees
employed by both it and a Fund, maintains office facilities, and
furnishes statistical and research data, clerical help, accounting,
data processing, bookkeeping and internal auditing and certain other
required services. The Manager also may make such advertising and
promotional expenditures, using its own resources, as it from time to
time deems appropriate.
As compensation for the Manager's services, the Money Market Fund
has agreed to pay the Manager a monthly management fee at the annual
rate of .50 of 1% of the value of the Fund's average daily net assets.
As compensation for the Manager's services, each Longer Term Fund has
agreed to pay the Manager a monthly management fee at the annual rate
of .60 of 1% of the value of its average daily net assets. All fees
and expenses for each Fund are accrued daily and deducted before the
declaration of dividends to investors. Set forth below are the total
amounts paid by each Fund to the Manager for each of the last three
fiscal years of the Funds:
Amount Paid by Amount Paid
Fiscal Year Money Market by Intermediate Amount Paid by
Ended May 31, Fund Bond Fund Bond Fund
1994 $ 1,769,463 $2,038,931* $12,540,757
1993 $ 1,984,999 $1,058,358* $11,974,650
1992 $ 2,246,273 $ 598,388* $10,970,576
- -----
* Reflects the reduction in management fees of $303,115, $350,689 and
$449,295 in 1994, 1993 and 1992, respectively, pursuant to
undertakings by the Manager then in effect.
The Manager has agreed that if, in any fiscal year, a Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on
borrowings and (with the prior written consent of the necessary state
securities commissions) extraordinary expenses, but including the
management fee, exceed 1-1/2% of the value of such Fund's average net
assets for the fiscal year, such Fund may deduct from the payment to
be made to the Manager under the Agreement, or the Manager will bear,
the excess expense. Such deduction or payment, if any, will be
estimated daily, and reconciled and effected or paid, as the case may
be, on a monthly basis.
The aggregate of the fees payable to the Manager by a Fund is not
subject to reduction as the value of such Fund's net assets increase.
PURCHASE OF SHARES
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "How to Buy
Shares."
The Distributor. The Distributor serves as each Fund's
distributor pursuant to separate agreements, each of which is
renewable annually. The Distributor also acts as distributor for the
other funds in the Dreyfus Family of Funds and for certain other
investment companies.
Dreyfus TeleTransfer Privilege. Dreyfus TeleTransfer purchase
orders may be made between the hours of 8:00 a.m. and 4:00 p.m., New
York time, on any business day that The Shareholder Services Group,
Inc., each Fund's transfer and dividend disbursing agent (the
"Transfer Agent"), and the New York Stock Exchange are open. Such
purchases will be credited to the shareholder's particular Fund
account on the Transfer Agent's next business day. To qualify to use
the Dreyfus TeleTransfer Privilege, the initial payment for purchase
of Fund shares must be drawn on, and redemption proceeds paid to, the
same bank and account as are designated on the Account Application or
Shareholder Services Form on file. If the proceeds of a particular
redemption are to be wired to an account at any other bank, the
request must be in writing and signature-guaranteed. See "Redemption
of Shares--Dreyfus TeleTransfer Privilege."
Using Federal Funds. The following information is applicable
only to shares of the Money Market Fund. The Transfer Agent or the
Money Market Fund may attempt to notify the investor upon receipt of
checks drawn on banks that are not members of the Federal Reserve
System as to the possible delay in conversion into Federal Funds and
may attempt to arrange for a better means of transmitting the money.
If the investor is a customer of a securities dealer ("Selected
Dealer") and his order to purchase Money Market Fund shares is paid
for other than in Federal Funds, the Selected Dealer, acting on behalf
of its customer, will complete the conversion into, or itself advance,
Federal Funds generally on the business day following receipt of the
customer order. The order is effective only when so converted and
received by the Transfer Agent. An order for the purchase of Money
Market Fund shares placed by an investor with sufficient Federal Funds
or cash balance in his brokerage account with a Selected Dealer will
become effective on the day that the order, including Federal Funds,
is received by the Transfer Agent.
Reopening an Account. An investor may reopen an account in any
of the Funds with a minimum investment of $100 without filing a new
Account Application during the calendar year the account is closed or
during the following calendar year, provided the information on the
old Account Application is still applicable.
SERVICE PLAN AND SHAREHOLDER SERVICES PLANS
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "Service Plan
and Shareholder Services Plans."
The Intermediate Bond Fund has adopted a Service Plan pursuant to
Rule 12b-1 under the Act and the Money Market Fund and Bond Fund have
adopted separate Shareholder Services Plans. In some states, banks or
other financial institutions effecting transactions in a Fund's shares
may be required to register as dealers pursuant to state law.
Service Plan (Intermediate Bond Fund only). Rule l2b-1 (the
"Rule") adopted by the Securities and Exchange Commission under the
Act provides, among other things, that an investment company may bear
expenses of distributing its shares only pursuant to a plan adopted in
accordance with the Rule. Because some or all of the fees paid for
advertising or marketing the Intermediate Bond Fund's shares, and fees
paid to certain financial institutions. Selected Dealers and other
industry professionals (collectively, "Service Agents"), in some
cases, could be deemed to be payment of distribution expenses, the
Intermediate Bond Fund's Board of Trustees has adopted such a plan
(the "Service Plan"). The Intermediate Bond Fund's Board of Trustees
believes that there is a reasonable likelihood that the Service Plan
adopted will benefit the Fund and its shareholders.
A quarterly report of the amounts expended under the Service
Plan, and the purposes for which such expenditures were incurred, must
be made to the Intermediate Bond Fund's Board of Trustees for its
review. In addition, the Service Plan provides that it may not be
amended to increase materially the costs which the Fund may bear for
distribution pursuant to the Service Plan without shareholder approval
and that other material amendments of the Service Plan must be
approved by the Board of Trustees, and by the Trustees who are not
"interested persons" (as defined in the Act) of the Fund or the
Manager and have no direct or indirect financial interest in the
operation of the Service Plan or in the related service agreements, by
vote cast in person at a meeting called for the purpose of considering
such amendments. The Service Plan and the related service agreements
are subject to annual approval by such vote of the Trustees cast in
person at a meeting called for the purpose of voting on the Service
Plan. The Service Plan was so approved most recently at a meeting
held on April 6, 1994. The Service Plan is terminable at any time by
vote of a majority of the Intermediate Bond Fund's Trustees who are
not "interested persons" and have no direct or indirect financial
interest in the operation of the Service Plan or in any of the related
service agreements or by vote of the holders of a majority of such
Fund's shares. Any service agreement is terminable without penalty,
at any time, by such vote of the Trustees or, upon not more than 60
days' written notice to the Service Agent, by vote of the holders of a
majority of Intermediate Bond Fund's the shares, or, upon 15 days'
notice, by the Distributor. A service agreement will terminate
automatically in the event of its assignment (as defined in the Act).
For the fiscal year ended May 31, 1994, $983,382 was paid by the
Intermediate Bond Fund pursuant to its Plan, which amount represented
expenditures related to advertising, marketing, and distributing the
Fund's shares, servicing Fund shareholders, and for printing the
Fund's individual prospectuses and statements of additional
information.
Shareholder Services Plans. (Money Market Fund and Bond Fund
only). The Money Market Fund and the Bond Fund each have adopted a
separate Shareholder Services Plan, pursuant to which each Fund
reimburses the Distributor for certain allocated expenses for the
provision of certain services to such Fund's shareholders.
A quarterly report of the amounts expended under the Shareholder
Services Plan, and the purposes for which such expenditures were
incurred, must be made to the respective Fund's Board for its review.
In addition, the Shareholder Services Plan provides that it may not be
amended without approval of the Board, and by the Board members who
are not "interested persons" (as defined in the Act) of the Fund and
have no direct or indirect financial interest in the operation of the
Shareholder Services Plan or in any agreements entered into in
connection with the Shareholder Services Plan, by vote cast in person
at a meeting called for the purpose of considering such amendments.
The Shareholder Services Plan is subject to annual approval by such
vote of the Board members cast in person at a meeting called for the
purpose of voting on the Shareholder Services Plan. Each Shareholder
Services Plan was so approved on July 14, 1993. The Shareholder
Services Plan is terminable at any time by vote of a majority of the
Board members who are not "interested persons" and who have no direct
or indirect financial interest in the operation of the Shareholder
Services Plan or in any agreements entered into in connection with the
Shareholder Services Plan.
For the fiscal year ended May 31, 1994, the Money Market Fund
paid $185,523, and the Bond Fund paid $774,417, pursuant to each
Fund's Shareholder Services Plan.
Prior Rule 12b-1 Plan. Effective July 1, 1993, the Money Market
Fund's then existing Rule 12b-1 plan was terminated. It provided for
payments to be made for the printing and distributing of prospectuses
and for implementing and operating such plan. Nothing was paid by the
Money Market Fund under the plan during the recent fiscal year.
REDEMPTION OF SHARES
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "How to Redeem
Shares."
Check Redemption Privilege. An investor may indicate on the
Account Application or by later written request that the Fund provide
Redemption Checks ("Checks") drawn on the Fund's account. Checks will
be sent only to the registered owner(s) of the account and only to the
address of record. The Account Application or later written request
must be manually signed by the registered owner(s). Checks may be
made payable to the order of any person in an amount of $500 or more.
When a Check is presented to the Transfer Agent for payment, the
Transfer Agent, as the investor's agent, will cause the Fund to redeem
a sufficient number of full or fractional shares in the investor's
account to cover the amount of the Check. Dividends are earned until
the Check clears. After clearance, a copy of the Check will be
returned to the investor. Investors generally will be subject to the
same rules and regulations that apply to checking accounts, although
election of this Privilege creates only a shareholder-transfer agent
relationship with the Transfer Agent.
If the amount of the Check is greater than the value of the
shares in an investor's account, the Check will be returned marked
insufficient funds. Checks should not be used to close an account.
Wire Redemption Privilege. By using this Privilege, the investor
authorizes the Transfer Agent to act on wire or telephone redemption
instructions from any person representing himself or herself to be the
investor or the investor's Service Agent, and reasonably believed by
the Transfer Agent to be genuine. Ordinarily, the Money Market Fund
will initiate payment for shares redeemed pursuant to this Privilege
on the same business day if the Transfer Agent receives the redemption
request in proper form prior to Noon on such day; otherwise the Money
Market Fund will initiate payment on the next business day. The
Longer Term Funds ordinarily will initiate payment for shares redeemed
pursuant to this privilege on the next business day after receipt by
the Transfer Agent of a redemption request in proper form. Redemption
proceeds will be transferred by Federal Reserve wire only to the
commercial bank account specified by the investor on the Account
Application or Shareholder Services Form. Redemption proceeds, if
wired, must be in the amount of $1,000 or more and will be wired to
the investor's account at the bank of record designated in the
investor's file at the Transfer Agent, if the investor's bank is a
member of the Federal Reserve System, or to a correspondent bank if
the investor's bank is not a member. Fees ordinarily are imposed by
such bank and usually are borne by the investor. Immediate
notification by the correspondent bank to the investor's bank is
necessary to avoid a delay in crediting the funds to the investor's
bank account.
Investors with access to telegraphic equipment may wire
redemption requests to the Transfer Agent by employing the following
transmittal code which may be used for domestic or overseas
transmission:
Transfer Agent's
Transmittal Code Answer Back Sign
---------------- ----------------
144295 144295 TSSG PREP
Investors who do not have direct access to telegraphic equipment
may have the wire transmitted by contacting a TRT Cables operator at
1-800-654-7171, toll free. Investors should advise the operator that
the above transmittal code must be used and should also inform the
operator of the Transfer Agent's answer back sign.
To change the commercial bank or account designated to receive
redemption proceeds, a written request must be sent to the Transfer
Agent. This request must be signed by each shareholder, with each
signature guaranteed as described below under "Share Certificates;
Signatures."
Dreyfus TeleTransfer Privilege. Investors should be aware that
if they have selected the Dreyfus TeleTransfer Privilege, any request
for a wire redemption will be effected as a Dreyfus TeleTransfer
transaction through the Automated Clearing House ("ACH") system unless
more prompt transmittal specifically is requested. Redemption
proceeds will be on deposit in the investor's account at an ACH member
bank ordinarily two business days after receipt of the redemption
request. See "Purchase of Shares--Dreyfus TeleTransfer Privilege."
Share Certificates; Signature. Any certificate representing Fund
shares to be redeemed must be submitted with the redemption request.
Written redemption requests must be signed by each shareholder,
including each holder of a joint account, and each signature must be
guaranteed. Signatures on endorsed certificates submitted for
redemption also must be guaranteed. The Transfer Agent has adopted
standards and procedures pursuant to which signature-guarantees in
proper form generally will be accepted from domestic banks, brokers,
dealers, credit unions, national securities exchanges, registered
securities associations, clearing agencies and savings associations,
as well as from participants in the New York Stock Exchange Medallion
Signature Program, the Securities Transfer Agents Medallion Program
("STAMP") and the Stock Exchanges Medallion Program. Guarantees must
be signed by an authorized signatory of the guarantor and
"Signature-Guaranteed" must appear with the signature. The Transfer
Agent may request additional documentation from corporations,
executors, administrators, trustees or guardians, and may accept other
suitable verification arrangements from foreign investors, such as
consular verification. For more information concerning signature-
guarantees, please call the telephone number listed on the cover.
Redemption Commitment. Each Fund has committed itself to pay in
cash all redemption requests by any shareholder of record, limited in
amount during any 90-day period to the lesser of $250,000 or 1% of the
value of the Fund's net assets at the beginning of such period. Such
commitment is irrevocable without the prior approval of the Securities
and Exchange Commission. In the case of requests for redemption in
excess of such amount, the Board reserves the right to make payments
in whole or in part in securities or other assets in case of an
emergency or any time a cash distribution would impair the liquidity
of the Fund to the detriment of the existing shareholders. In such
event, the securities would be valued in the same manner as the Fund's
portfolio is valued. If the recipient sold such securities, brokerage
charges would be incurred.
Suspension of Redemptions. The right of redemption may be
suspended or the date of payment postponed (a) during any period when
the New York Stock Exchange is closed (other than customary weekend
and holiday closings), (b) when trading in the respective markets each
Fund ordinarily utilizes is restricted, or when an emergency exists as
determined by the Securities and Exchange Commission so that disposal
of such Fund's investments or determination of its net asset value is
not reasonably practicable, or (c) for such other periods as the
Securities and Exchange Commission by order may permit to protect the
respective Fund's shareholders.
SHAREHOLDER SERVICES
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "Shareholder
Services."
Exchange Privilege. Shares of other funds purchased by exchange
will be purchased on the basis of relative net asset value per share
as follows:
A. Exchanges for shares of funds that are offered without a
sales load will be made without a sales load.
B. Shares of funds purchased without a sales load may be
exchanged for shares of other funds sold with a sales load, and the applicable
sales load will be deducted.
C. Shares of funds purchased with a sales load may be exchanged
without a sales load for shares of other funds sold without a sales
load.
D. Shares of funds purchased with a sales load, shares of funds
acquired by a previous exchange from shares purchased with a sales load,
and additional shares acquired through reinvestment of dividends or
distributions of any such funds (collectively referred to herein as "Purchased
Shares") may be exchanged for shares of other funds sold with a sales load
(referred to herein as "Offered Shares"), provided that, if the sales
load applicable to the Offered Shares exceeds the maximum sales load that could
have been imposed in connection with the Purchased Shares (at the time
the Purchased Shares were acquired), without giving effect to any reduced
loads, the difference will be deducted.
To accomplish an exchange under item D above, shareholders must
notify the Transfer Agent of their prior ownership of fund shares and
their account number.
To use this Privilege, the investor, or the investor's Service
Agent acting on the investor's behalf, must give exchange instructions
to the Transfer Agent in writing, by wire or by telephone. Telephone
exchanges may be made only if the appropriate "YES" box has been
checked on the Account Application, or a separate signed Shareholder
Services Form is on file with the Transfer Agent. By using this
Privilege, the investor authorizes the Transfer Agent to act on
telephonic, telegraphic or written exchange instructions from any
person representing himself or herself to be the investor, or a
representative of the investor's Service Agent, and reasonably
believed by the Transfer Agent to be genuine. Telephone exchanges
may be subject to limitations as to the amount involved or number of
telephone exchanges permitted. Shares issued in certificate form are
not eligible for telephone exchanges.
To establish a Personal Retirement Plan by exchange, shares of
the fund being exchanged must have a value of at least the minimum
initial investment required for the fund into which the exchange is
being made. For Dreyfus-sponsored Keogh Plans, IRAs and IRAs set up
under a Simplified Employee Pension Plan ("SEP-IRAs") with only one
participant, the minimum initial investment is $750. To exchange
shares held in Corporate Plans, 403(b)(7) Plans and SEP-IRAs with more
than one participant, the minimum initial investment is $100 if the
plan has at least $2,500 invested among the funds in the Dreyfus
Family of Funds. To exchange shares held in Personal Retirement
Plans, the shares exchanged must have a current value of at least
$100.
Dreyfus Auto-Exchange Privilege. Dreyfus Auto-Exchange Privilege
permits an investor to purchase, in exchange for shares of a Fund,
shares of another fund in the Dreyfus Family of Funds. This Privilege
is available only for existing accounts. Shares will be exchanged on
the basis of relative net asset value as described above under
"Exchange Privilege." Enrollment in or modification or cancellation
of this Privilege is effective three business days following
notification by the investor. An investor will be notified if his
account falls below the amount designated to be exchanged under this
Privilege. An investor's account will fall to zero unless additional
investments are made in excess of the designated amount prior to the
next Auto-Exchange transaction. Shares held under IRA and other
retirement plans are eligible for this Privilege. Exchanges of IRA
shares may be made between IRA accounts and from regular accounts to
IRA accounts, but not from IRA accounts to regular accounts. With
respect to all other retirement accounts, exchanges may be made only
among those accounts.
The Exchange Privilege and Dreyfus Auto-Exchange Privilege are
available to shareholders resident in any state in which shares of the
fund being acquired may legally be sold. Shares may be exchanged only
between accounts having identical names and other identifying
designations.
Shareholder Services Forms and prospectuses of the other funds
may be obtained from the Distributor, 144 Glenn Curtiss Boulevard,
Uniondale, New York 11556-0144. Each Fund reserves the right to
reject any exchange request in whole or in part. The Exchange
Privilege or Auto-Exchange Privilege may be modified or terminated at
any time by a Fund upon notice to its shareholders.
Automatic Withdrawal Plan. The Automatic Withdrawal Plan permits
an investor with a $5,000 minimum account to request withdrawal of a
specified dollar amount (minimum of $50) on either a monthly or
quarterly basis. Withdrawal payments are the proceeds from sales of
Fund shares, not the yield on the shares. If withdrawal payments
exceed reinvested dividends and distributions, the investor's shares
will be reduced and eventually may be depleted. An Automatic
Withdrawal Plan may be established by completing the appropriate
application available from the Distributor. There is a service charge
of $.50 for each withdrawal check. Automatic Withdrawal may be
terminated at any time by the investor, the Fund or the Transfer
Agent. Shares for which certificates have been issued may not be
redeemed through the Automatic Withdrawal Plan.
Dreyfus Dividend Sweep. Dreyfus Dividend Sweep allows investors
to invest on the payment date their dividends or dividends and capital
gain distributions, if any, from a Fund in shares of other eligible
funds in the Dreyfus Family of Funds of which the investor is a
shareholder. Shares of other funds purchased pursuant to the
privilege will be purchased on the basis of relative net asset value
per share as follows:
A. Dividends and distributions paid by a fund may be invested
without imposition of a sales load in shares of other funds that are
offered without a sales load.
B. Dividends and distributions paid by a fund which does not charge
a sales load may be invested in shares of other funds sold with a sales
load, and the applicable sales load will be deducted.
C. Dividends and distributions paid by a fund which charges a sales
load may be invested in shares of other funds sold with a sales load
(referred to herein as "Offered Shares"), provided that, if the sales
load applicable to the Offered Shares exceeds the maximum sales load
charged by the fund from which dividends or distributions are being
swept, without giving effect to any reduced loads, the difference will
be deducted.
D. Dividends and distributions paid by a fund may be invested in
shares of other funds that impose a contingent deferred sales charge
("CDSC") and the applicable CDSC, if any, will be imposed upon the
redemption of such shares.
DETERMINATION OF NET ASSET VALUE
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "How to Buy
Shares."
Amortized Cost Pricing. The information contained in this
section is applicable only to the Money Market Fund. The valuation of
the Money Market Fund's portfolio securities is based upon their
amortized cost, which does not take into account unrealized capital
gains or losses. This involves valuing an instrument at its cost, and
thereafter assuming a constant amortization to maturity of any
discount or premium, regardless of the impact of fluctuating interest
rates on the market value of the instrument. While this method
provides certainty in valuation, it may result in periods during which
value, as determined by amortized cost, is higher or lower than the
price the Fund would receive if it sold the instrument.
The Money Market Fund's Board of Trustees has established, as a
particular responsibility within the overall duty of care owed to the
Money Market Fund's investors, procedures reasonably designed to
stabilize the Fund's price per share as computed for the purpose of
sales and redemptions at $1.00. Such procedures include review of the
Money Market Fund's portfolio holdings by the Board of Trustees, at
such intervals as it deems appropriate, to determine whether the Money
Market Fund's net asset value calculated by using available market
quotations or market equivalents deviates from $1.00 per share based
on amortized cost. Market quotations and market equivalents used in
such review are obtained from an independent pricing service (the
"Service") approved by the Board of Trustees. The Service values the
Money Market Fund's investments based on methods which include
consideration of: yields or prices of municipal bonds of comparable
quality, coupon, maturity and type; indications of values from
dealers; and general market conditions. The Service also may employ
electronic data processing techniques and/or a matrix system to
determine valuations.
The extent of any deviation between the Money Market Fund's net
asset value based upon available market quotations or market
equivalents and $1.00 per share based on amortized cost will be
examined by the Board of Trustees. If such deviation exceeds 1/2 of
1%, the Board of Trustees promptly will consider what action, if any,
will be initiated. In the event the Board of Trustees determines that
a deviation exists which may result in material dilution or other
unfair results to investors or existing shareholders, it has agreed to
take such corrective action as it regards as necessary and
appropriate, including: selling portfolio instruments prior to
maturity to realize capital gains or losses or to shorten average
portfolio maturity; withholding dividends or paying distributions from
capital or capital gains; redeeming shares in kind; or establishing a
net asset value per share by using available market quotations or
market equivalents.
Valuation of Portfolio Securities. The information contained in
this section is applicable only to the Longer Term Funds. The
investments of each Longer Term Fund are valued each business day by
an independent pricing service (the "Service") approved by such Fund's
Board. When, in the judgment of the Service, quoted bid prices for
investments are readily available and are representative of the bid
side of the market, these investments are valued at the mean between
the quoted bid prices (as obtained by the Service from dealers in such
securities) and asked prices (as calculated by the Service based upon
its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried
at fair value as determined by the Service, based on methods which
include consideration of: yields or prices of municipal bonds of
comparable quality, coupon, maturity and type; indications as to
values from dealers; and general market conditions. The Service may
employ electronic data processing techniques and/or a matrix system to
determine valuations. The Service's procedures are reviewed by the
Fund's officers under the general supervision of the relevant Fund's
Board. As to each Fund, expenses and fees, including the management
fees (reduced by the expense limitation, if any) and fees pursuant to
the Service Plan or Shareholder Services Plan, as the case may be, are
accrued daily and are taken into account for the purpose of
determining the net asset values of such Fund's shares.
New York Stock Exchange Closings. The holidays (as observed) on
which the New York Stock Exchange is closed currently are: New Year's
Day, Presidents' Day, Good Friday, Memorial Day, Independence Day,
Labor Day, Thanksgiving and Christmas.
PORTFOLIO TRANSACTIONS
Portfolio securities ordinarily are purchased from and sold to
parties acting as either principal or agent. Newly-issued securities
ordinarily are purchased directly from the issuer or from an
underwriter; other purchases and sales usually are placed with those
dealers from which it appears that the best price or execution will be
obtained. Usually no brokerage commissions, as such, are paid by any
Fund for such purchases and sales, although the price paid usually
includes an undisclosed compensation to the dealer acting as agent.
The prices paid to underwriters of newly-issued securities usually
include a concession paid by the issuer to the underwriter, and
purchases of after-market securities from dealers ordinarily are
executed at a price between the bid and asked price. No brokerage
commissions have been paid by any Fund to date.
Transactions are allocated to various dealers by the Investment
Officers of the Fund in their best judgment. The primary
consideration is prompt and effective execution of orders at the most
favorable price. Subject to that primary consideration, dealers may
be selected for research, statistical or other services to enable the
Manager to supplement its own research and analysis with the views and
information of other securities firms.
Research services furnished by brokers through which a Fund
effects securities transactions may be used by the Manager in advising
other funds it advises and, conversely, research services furnished to
the Manager by brokers in connection with other funds the Manager
advises may be used by the Manager in advising each Fund. Although it
is not possible to place a dollar value on these services, it is the
opinion of the Manager that the receipt and study of such services
should not reduce the overall expenses of its research department.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "Dividends,
Distributions and Taxes."
All Funds. Ordinarily, gains and losses realized from portfolio
transactions will be treated as capital gain or loss. However, all or
portion of any gain realized from the sale or other disposition of
certain market discount bonds will be treated as ordinary income under
Section 1276 of the Internal Revenue Code of 1986, as amended (the
"Code").
Long Term Funds Only. The Code provides that if a shareholder
has not held his Fund shares for more than six months (or such shorter
period as the Internal Revenue Service may prescribe by regulation)
and has received an exempt-interest dividend with respect to such
shares, any loss incurred on the sale of such shares will be
disallowed to the extent of the exempt-interest dividend received. In
addition, any dividend or distribution paid shortly after an
investor's purchase may have the effect of reducing the net asset
value of his shares below the cost of his investment. Such a
distribution would be a return on investment in an economic sense
although taxable as stated in "Dividends, Distributions and Taxes" in
the Prospectus.
Investment by the Longer Term Funds in securities issued at a
discount or providing for deferred interest or for payment of interest
in the form of additional obligations could, under special tax rules,
affect the amount, timing and character of distributions to
shareholders. For example, a Fund could be required to take into
account annually a portion of the discount (or deemed discount) at
which such securities were issued and to distribute such portion in
order to maintain its qualification as a regulated investment company.
In that case, the Fund may have to dispose of securities which it
might otherwise have continued to hold in order to generate cash to
satisfy these distribution requirements.
PERFORMANCE INFORMATION
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "Performance
Information."
Money Market Fund. For the seven-day period ended May 31, 1994,
the Money Market Fund's yield was 2.06% and its effective yield was
2.08%. The Money Market Fund's yield is computed in accordance with a
standardized method which involves determining the net change in the
value of a hypothetical pre-existing Fund account having a balance of
one share at the beginning of a seven calendar day period for which
yield is to be quoted, dividing the net change by the value of the
account at the beginning of the period to obtain the base period
return, and annualizing the results (i.e., multiplying the base period
return by 365/7). The net change in the value of the account reflects
the value of additional shares purchased with dividends declared on
the original share and any such additional shares and fees that may be
charged to shareholder accounts, in proportion to the length of the
base period and the Fund's average account size, but does not include
realized gains and losses or unrealized appreciation and depreciation.
Effective yield is computed by adding 1 to the base period return
(calculated as described above), raising that sum to a power equal to
365 divided by 7, and subtracting 1 from the result.
Based upon a combined 1994 Federal, New York State and New York
City personal income tax rate of 47.05%, the Money Market Fund's tax
equivalent yield for the seven-day period ended May 31, 1994 was
3.89%.
Longer Term Funds. The Intermediate Bond Fund's yield for the
30-day period ended May 31, 1994 was 4.65%. The Bond Fund's yield for
the 30-day period ended May 31, 1994 was 5.08%. Current yield for a
Longer Term Fund is computed pursuant to a formula which operates as
follows: the amount of a Fund's expenses accrued for a 30-day period
is subtracted from the amount of the dividends and interest earned
(computed in accordance with regulatory requirements) by it during the
period. That result is then divided by the product of: (a) the
average daily number of shares outstanding during the period that were
entitled to receive dividends, and (b) the net asset value per share
on the last day of the period less any undistributed earned income per
share reasonably expected to be declared as a dividend shortly
thereafter. The quotient is then added to 1, and that sum is raised
to the 6th power, after which 1 is subtracted. The current yield is
then arrived at by multiplying the result by 2.
Based upon a combined 1994 Federal, New York State and New York
City personal income tax rate of 47.05%, the Intermediate Bond Fund's
tax equivalent yield for the 30-day period ended May 31, 1994 was
8.78% and the Bond Fund's tax equivalent yield for such period was
9.59%.
The Intermediate Bond Fund's average annual total return for the
one-, five- and ten-year periods ended May 31, 1994 was 3.11%, 7.84%
and 7.59%, respectively. Absent any expense absorptions which may
have been in effect, returns would have been lower. The Bond Fund's
average annual total return for the one-, five- and ten-year periods
ended May 31, 1994 was 1.42%, 7.68% and 9.82%, respectively. Average
annual total return is calculated by determining the ending redeemable
value of an investment purchased with a hypothetical $1,000 payment
made at the beginning of the period (assuming the reinvestment of
dividends and distributions), dividing by the amount of the initial
investment, taking the "n"th root of the quotient (where "n" is the
number of years in the period) and subtracting 1 from the result.
The Intermediate Bond Fund's total return for the period June 12,
1987 (commencement of operations) to May 31, 1994 was 66.46%. The
Bond Fund's total return for the period July 26, 1983 (commencement of
operations) to May 31, 1994 was 162.33%. Total return is calculated
by subtracting the amount of the Fund's net asset value per share at
the beginning of a stated period from the net asset value per share at
the end of the period (after giving effect to the reinvestment of
dividends and distributions during the period), and dividing the
result by the net asset value per share at the beginning of the
period.
All Funds. Tax equivalent yield is computed by dividing that
portion of the current yield (calculated as described above) which is
tax exempt by 1 minus a stated tax rate and adding the quotient to
that portion, if any, of the yield of the Fund that is not tax exempt.
The tax equivalent yields noted above represent the application of the
highest Federal, New York State and New York City marginal personal
income tax rates presently in effect. For Federal income tax
purposes, a 39.6% tax rate has been used. For New York State and New
York City personal income tax purposes, tax rates of 7.875% and 4.46%,
respectively, have been used. The tax equivalent figure, however,
does not reflect the potential effect of local (including, but not
limited to, county, district or city) taxes, including applicable
surcharges. In addition, there may be pending legislation which could
affect such stated tax rates or yield. Each investor should consult
its tax adviser, and consider its own factual circumstances and
applicable tax laws, in order to ascertain the relevant tax equivalent
yield.
Yields will fluctuate and are not necessarily representative of
future results. Each investor should remember that yield is a
function of the type and quality of the instruments in the portfolio,
portfolio maturity and operating expenses. An investor's principal in
the Fund is not guaranteed. See "Determination of Net Asset Value"
for a discussion of the manner in which the Fund's price per share is
determined.
From time to time, each Fund may use hypothetical tax equivalent
yields or charts in their advertising. These hypothetical yields or
charts will be used for illustrative purposes only and are not
indicative of the Fund's past or future performance.
Advertising materials for a Fund also may refer to or discuss
then-current or past economic conditions, developments, and/or events,
and actual or proposed tax legislation. From time to time,
advertising materials of a Fund also may refer to statistical or other
information concerning trends relating to investment companies, as
compiled by industry associations such as the Investment Company
Institute. From time to time, advertising materials for the Longer
Term Funds also may refer to Morningstar ratings and related analyses
supporting such ratings.
INFORMATION ABOUT THE FUNDS
The following information supplements and should be read in
conjunction with the section in the Prospectus entitled "General
Information."
Each Fund share has one vote and, when issued and paid for in
accordance with the terms of the offering, is fully paid and
non-assessable. Each Fund share is of one class and has equal rights
as to dividends and in liquidation. Shares have no preemptive,
subscription or conversion rights and are freely transferable.
Each Fund sends an annual and semi-annual financial statements to
all its respective shareholders.
CUSTODIAN, TRANSFER AND DIVIDEND DISBURSING AGENT,
COUNSEL AND INDEPENDENT AUDITORS
The Bank of New York, 110 Washington Street, New York, New York
10286, acts as custodian of each Fund's investments. The Shareholder
Services Group, Inc., a subsidiary of First Data Corporation, P.O. Box
9671, Providence, Rhode Island 02940-9671, is each Fund's transfer and
dividend disbursing agent. Neither The Bank of New York nor The
Shareholder Services Group, Inc. has any part in determining the
investment policies of any Fund or which securities are to be
purchased or sold by a Fund.
Stroock & Stroock & Lavan, Seven Hanover Square, New York, New
York 10004-2696, as counsel for each Fund, has rendered its opinion as
to certain legal matters regarding the due authorization and valid
issuance of the shares being sold pursuant to the Prospectus.
Ernst & Young, 787 Seventh Avenue, New York, New York 10019,
independent auditors, have been selected as auditors of each Fund.
APPENDIX A
RISK FACTORS--INVESTING IN NEW YORK MUNICIPAL OBLIGATIONS
The financial condition of New York State (the "State") and certain of
its public bodies (the "Agencies") and municipalities, particularly New York
City (the "City"), could affect the market values and marketability of New
York Municipal Obligations which may be held by the Fund. The following
information constitutes only a brief summary, does not purport to be a
complete description, and is based on information drawn from official
statements relating to securities offerings of the State, the City and the
Municipal Assistance Corporation for the City of New York ("MAC") available
as of the date of this Statement of Additional Information. While the Fund
has not independently verified such information, it has no reason to believe
that such information is not correct in all material respects.
A national recession commenced in mid-1990. The downturn continued
through the remainder of the 1990-91 fiscal year, and was followed by a
period of weak economic growth during the remainder of the 1991 calendar
year. For the calendar year 1992, the national economy continued to
recover, although at a rate below all post-war recoveries. The recession
was more severe in the State than in other parts of the nation, owing to a
significant retrenchment in the financial services industry, cutbacks in
defense spending, and an overbuilt real estate market. The State economy
remained in recession until 1993, when employment growth resumed. Since
early 1993, the State has gained approximately 100,000 jobs.
The State's budget for the 1994-95 fiscal year was enacted by the
Legislature on June 7, 1994, more than two months after the start of the
fiscal year. Prior to adoption of the budget, the Legislature enacted
appropriations for disbursements considered to be necessary for State
operations and other purposes, including all necessary appropriations for
debt service. The State Financial Plan for 1994-95 fiscal year was
formulated on June 16, 1994 and is based on the State's budget as enacted by
the Legislature and signed into law by the Governor.
The State Financial Plan is based upon forecasts of national and State
economic activity. Economic forecasts have frequently failed to predict
accurately the timing and magnitude of changes in the national and the State
economies. Many uncertainties exist in forecasts of both the national and
State economies, including consumer attitudes toward spending, Federal
financial and monetary policies, the availability of credit and the
condition of the world economy, which could have an adverse effect on the
State. There can be no assurance that the State economy will not experience
worse-than-predicted results in the 1994-95 fiscal year, with corresponding
material and adverse effects on the State's projections of receipts and
disbursements.
The State Financial Plan for the 1994-95 fiscal year projects that the
General Fund is balanced on a cash basis with total projected receipts of
$34.321 billion, an increase of $2.092 billion over total receipts in the
prior fiscal year. Total General Fund disbursements in the 1994-95 fiscal
year are projected to be $34.248 billion, an increase of $2.351 billion over
the total amount disbursed and transferred in the prior fiscal year.
There can be no assurance that the State will not face substantial
potential budget gaps in future years resulting from a significant disparity
between tax revenues projected from a lower recurring receipts base and the
spending required to maintain State programs at current levels. To address
any potential budgetary imbalance, the State may need to take significant
actions to align recurring receipts and disbursements in future fiscal
years.
On June 6, 1990, Moody's changed its ratings on all the State's
outstanding general obligation bonds from A1 to A. On March 26, 1990 and
January 13, 1992, S&P changed its ratings on all of the State's outstanding
general obligation bonds from AA- to A and from A to A-, respectively.
Ratings reflect only the respective views of such organizations, and their
concerns about the financial condition of New York State and City, the debt
load of the State and City and any economic uncertainties about the region.
There is no assurance that a particular rating will continue for any given
period of time or that any such rating will not be revised downward or
withdrawn entirely if, in the judgment of the agency originally establishing
the rating, circumstances so warrant.
(1) The State, Agencies and Other Municipalities. During the mid-
1970s, some of the Agencies and municipalities (in particular, the City)
faced extraordinary financial difficulties, which affected the State's own
financial condition. These events, including a default on short-term notes
issued by the New York State Urban Development Corporation ("UDC") in
February 1975, which default was cured shortly thereafter, and a
continuation of the financial difficulties of the City, created substantial
investor resistance to securities issued by the State and by some of its
municipalities and Agencies. For a time, in late 1975 and early 1976, these
difficulties resulted in a virtual closing of public credit markets for
State and many State related securities.
In response to the financial problems confronting it, the State
developed and implemented programs for its 1977 fiscal year that included
the adoption of a balanced budget on a cash basis (a deficit of $92 million
that actually resulted was financed by issuing notes that were paid during
the first quarter of the State's 1978 fiscal year). In addition,
legislation was enacted limiting the occurrence of additional so-called
"moral obligation" and certain other Agency debt, which legislation does
not, however, apply to MAC debt.
State Financial Results. During the fiscal years ended March 31, 1987,
1988, 1989 and 1990, the State experienced significant unanticipated
variations in the result of the State Financial Plan, particularly with
respect to revenue projections, which it believes resulted principally from
changes in taxpayer behavior caused by the Federal Tax Reform Act of 1986
(the "Tax Reform Act"). The Tax Reform Act substantially altered
definitions of income and deductions in the computation of taxable income
and substantially lowered tax rates used in the computation of Federal
taxes. In 1987, the State enacted legislation that conformed State law to
most of those definitional changes and also lowered tax rates. Those
changes "broadened" the income tax base through such devices as full
inclusion of capital gains, restrictions on certain losses and adjustments
to income. Those changes in the Federal tax law are expected to continue to
influence taxpayer behavior during the next several years. For State
personal income taxes, the net effect of those changes is to make estimates
and forecasts of adjusted gross income less reliable than they had been in
the past and to add substantial uncertainty to estimates of State tax
liability based on such estimates and forecasts. In large part because of
these uncertainties, the State's Financial Plan overestimated General Fund
tax receipts in the 1988-89, 1989-90 and 1990-91 fiscal years by $1.9
billion, $1.6 billion and $1.72 billion, respectively.
During its 1989-90, 1990-91 and 1991-92 fiscal years, the State
incurred cash-basis operating deficits in the General Fund of $775 million,
$1.081 billion and $575 million, respectively, prior to the issuance of
short-term tax and revenue anticipation notes ("TRANs"), owing to lower-
than-projected receipts.
For its 1992-93 fiscal year the State had a balanced budget on a cash
basis with a positive margin of $671 million in the General Fund that was
deposited in the refund reserve account.
After reflecting a 1992-93 year-end deposit to the refund reserve
account of $671 million, reported 1992-93 General Fund receipts were $45
million higher than originally projected in April 1992. If not for that
year-end transaction, which had the effect of reducing 1992-93 receipts by
$671 million and making those receipts available in 1993-94, General Fund
receipts would have been $716 million higher than originally projected.
The favorable performance was primarily attributable to personal income
tax collections that were more than $700 million higher than originally
projected (before reflecting the refund reserve transaction). The
withholding and estimated payment components of the personal income tax
exceeded original estimates by more than $800 million combined, reflecting
both stronger economic activity, particularly at year's end, and the tax-
induced one-time acceleration of income into 1992. Modest shortfalls were
experienced in other components of the income tax.
There were large, but largely offsetting, variances in other
categories. Significantly higher-than-projected business tax collections
and the receipt of unbudgeted payments from the Medical Malpractice
Insurance Association and the New York Racing Association approximately
offset the loss of an anticipated $200 million Federal reimbursement, the
loss of certain budgeted hospital differential revenue as a result of
unfavorable court decisions, and shortfalls in certain miscellaneous revenue
sources.
Disbursements and transfers to other funds totaled $30.829 billion, an
increase of $45 million above projections in April 1992. After adjusting
for the impact of a $150 million payment from the Medical Malpractice
Insurance Association to health insurers made pursuant to legislation passed
in January 1993, actual disbursements were $105 million lower than
projected. This reduction primarily reflected higher-than-anticipated costs
for educational programs, as offset by lower costs in virtually all other
categories of spending, including Medicaid, local health programs, agency
operations, fringe benefits, capital projects and debt service.
The State ended its 1993-94 fiscal year with a balance of $1.140
billion in the tax refund reserve account, $265 million in its contingency
fund and $134 million in its tax stabilization reserve fund. These fund
balances were primarily the result of an improving national economy, State
employment growth, tax collections that exceeded earlier projections and
disbursements that were below expectations. Deposits to the personal income
tax refund reserve have the effect of reducing reported personal income tax
receipts in the fiscal year when made and withdrawals from such reserve
increase receipts in the fiscal year when made. The balance in the tax
reserve account will be used to pay taxpayer refunds, rather than drawing
from 1994-95 receipts.
Of the $1.140 billion deposited in the tax refund reserve account,
$1.026 billion was available for budgetary planning purposes in the 1994-95
fiscal year. The remaining $114 million will be redeposited in the tax
refund reserve account at the end of the State's 1994-95 fiscal year to
continue the process of restructuring the State's cash flow as part of the
New York Local Government Assistance Corporation ("LGAC") program. The
balance in the contingency reserve fund will be used to meet the cost of
litigation facing the State. The tax stabilization reserve fund may be used
only in the event of an unanticipated General Fund cash-basis deficit during
the 1994-95 fiscal year.
Before the deposit of $1.140 billion in the tax refund reserve account,
General Fund receipts in 1993-94 exceeded those originally projected when
the State Financial Plan for the year was formulated on April 16, 1993 by
$1.002 billion. Greater-than-expected receipts in the personal income tax,
the bank tax, the corporation franchise tax and the estate tax accounted for
most of this variance, and more than offset weaker-than-projected
collections from the sales and use tax and miscellaneous receipts.
Collections from individual taxes were affected by various factors
including changes in Federal business laws, sustained profitability of
banks, strong performance of securities firms, and higher-than-expected
consumption of tobacco products following price cuts.
The higher receipts resulted, in part, because the New York economy
performed better than forecasted. Employment growth started in the first
quarter of the State's 1993-94 year, and although this lagged the national
economic recovery, the growth in New York began earlier than forecasted.
The New York economy exhibited signs of strength in the service sector, in
construction, and in trade. Long Island, and the Mid-Hudson Valley
continued to lag the rest of the State in economic growth. Approximately
100,000 jobs are believed to have been added during the 1993-94 fiscal year.
Disbursements and transfer from the General Fund were $303 million
below the level projected in April 1993, an amount that would have been $423
million had the State not accelerated the payment of Medicaid billings,
which in the April 1993 State Financial Plan were planned to be deferred
into the 1994-95 fiscal year. Compared to the estimates included in the
State Financial Plan formulated in April 1993, disbursements were lower for
Medicaid, capital projects, and debt service (due to refundings). In
addition, $114 million of school and payments were funded from the proceeds
of LGAC bonds. Disbursements were higher-than-expected for general support
for public schools. The State also made the first of six required payments
to the State of Delaware related to the settlement of Delaware's litigation
against the State regarding the disposition of abandoned property receipts.
During the 1993-94 fiscal year, the State also established and funded a
Contingency Reserve Fund ("CRF") as a way to assist the State in financing
the cost of litigation affecting the State. The CRF was initially funded
with a transfer of $100 million attributable to the positive margin recorded
in the 1992-93 fiscal year. In addition, the State augmented this initial
deposit with $132 million on debt service savings attributable to the
refinancing of State and public authority bonds during 1993-94. A year-end
transfer of $36 million was also made to the CRF, which, after a
disbursement for authorized fund purposes, brought the CRF balance at the
end of 1993-94 to $265 million. This amount was $165 million higher than
the amount originally targeted for this reserve fund.
The principal operating fund of the State is the General Fund. It
receives all State income that is not required by law to be deposited in
another fund. General Fund receipts, including transfers from other funds,
totalled $32.229 billion in the State's 1993-94 fiscal year. General Fund
receipts in the State's 1994-95 fiscal year are estimated in the State
Financial Plan at $34.321 billion. Including transfers to other funds,
total General Fund disbursements in the 1993-94 fiscal year were $31.897
billion, and are estimated to total $34.248 billion in the State's 1993-94
fiscal year.
The Special Revenue Funds account for State receipts from specific
sources that are legally restricted in use to specified purposes and include
all moneys received from the Federal government. Total receipts in Special
Revenue Funds are projected at $24.598 billion in the State's 1994-95 fiscal
year. Federal grants are projected to account for 75% of the total
projected receipts in Special Revenue Funds in the State's 1994-95 fiscal
year.
Disbursements from Special Revenue Funds are projected to be $24.982
billion for the State's 1994-95 fiscal year. Grants to local governments
disbursed from this fund type are projected to account for 75% of
disbursements from this fund for the 1994-95 fiscal year.
The Capital Projects Funds are used to finance the acquisition and
construction of major capital facilities and to aid local government units
and Agencies in financing capital constructions. Federal grants for capital
projects, largely highway-related, are projected to account for 33% of the
$3.233 billion in total projected receipts in Capital Projects Funds in the
State's 1994-95 fiscal year. Total disbursements for capital projects are
projected to be $3.730 billion during the State's 1994-95 fiscal year. Of
total disbursements from Capital Projects Funds, approximately 54% is for
various transportation purposes, including highways and mass transportation
facilities; 4% is for programs of the Department of Correctional Services
and other public protection activities; 16% is for health and mental hygiene
facilities; 13% is for environmental and recreational programs; 5% is for
educational programs; and 5% is for housing and economic development
programs. The balance is for the maintenance of State office facilities and
various other capital programs.
The Debt Service Funds serve to fulfill State debt service on long-term
general obligation State debt and other State lease/purchase and contractual
obligation financing commitments. Total receipts in Debt Service Funds are
projected to reach $2.318 billion in the State's 1994-95 fiscal year. Total
disbursements from Debt Service Funds for debt service, lease/purchase and
contractual obligation financing commitments are projected to be $2.246
billion for the 1994-95 fiscal year.
The State's financial position on a GAAP-basis as shown in its Combined
Balance Sheet as of March 31, 1993 included an accumulated deficit in its
combined governmental funds of $681 million represented by liabilities of
$12.864 billion and assets of $12.183 billion available to liquidate such
liabilities. The accumulated governmental fund type deficit, as of March
31, 1993, included a $2.551 billion accumulated General Fund deficit,
consisting of a $4.616 billion accumulated deficit at April 1, 1992, offset
by the $2.065 billion operating surplus in the General Fund for the 1992-93
fiscal year and a net accumulated surplus of $1.870 billion for all other
governmental funds. The State's financial position as shown in its Combined
Balance Sheet as of March 21, 1992 included an accumulated deficit in its
combined governmental funds of $3.315 billion represented by liabilities of
$14.166 billion and assets of $10.851 billion available to liquidate such
liabilities.
The State issued $850 million in TRANs on May 4, 1993 to fund its day-
to-day operations and certain local assistance payments to its
municipalities and school districts. All of these TRANs matured on December
31, 1993.
The State anticipates that its 1994-95 borrowings for capital purposes
will consist of approximately $374 million in general obligation bonds
(including $140 million for the purpose of redeeming outstanding bond
anticipation notes) and $140 million in new commercial paper issuances. The
Legislature has authorized the issuance of up to $69 million in certificates
of participation for real property and equipment acquisitions during the
State's 1994-95 fiscal year. The projections of the State regarding its
borrowings for the 1994-95 fiscal year may change if actual receipts fall
short of State projections or if other circumstances require.
In addition, the LGAC is authorized to provide net proceeds of $315
million during the 1994-95 fiscal year to make payments to local
governmental units, otherwise made by the State, reduces the State's future
liabilities.
State Agencies. The fiscal stability of the State is related, at least
in part, to the fiscal stability of its localities and various of its
Agencies. Various Agencies have issued bonds secured, in part, by
non-binding statutory provisions for State appropriations to maintain
various debt service reserve funds established for such bonds (commonly
referred to as "moral obligation" provisions).
At September 30, 1993, there were 18 Agencies that had outstanding debt
of $100 million or more. The aggregate outstanding debt, including
refunding bonds, of these 18 Agencies was $63.5 billion as of September 30,
1993. As of March 31, 1994, aggregate Agency debt outstanding as State-
supported debt was $21.1 billion and as State-related was $29.4 billion.
Debt service on the outstanding Agency obligations normally is paid out of
revenues generated by the Agencies' projects or programs, but in recent
years the State has provided special financial assistance, in some cases on
a recurring basis, to certain Agencies for operating and other expenses and
for debt service pursuant to moral obligation indebtedness provisions or
otherwise. Additional assistance is expected to continue to be required in
future years.
Several Agencies have experienced financial difficulties in the past.
Certain Agencies continue to experience financial difficulties requiring
financial assistance from the State. Failure of the State to appropriate
necessary amounts or to take other action to permit certain Agencies to meet
their obligations could result in a default by one or more of such Agencies.
If a default were to occur, it would likely have a significant effect on the
marketability of obligations of the State and the Agencies. These Agencies
are discussed below.
The New York State Housing Finance Agency ("HFA") provides financing
for multifamily housing, State University construction, hospital and nursing
home development, and other programs. In general, HFA depends upon
mortgagors in the housing programs it finances to generate sufficient funds
from rental income, subsidies and other payments to meet their respective
mortgage repayment obligations to HFA, which provide the principal source of
funds for the payment of debt service on HFA bonds, as well as to meet
operating and maintenance costs of the projects financed. From January 1,
1976 through March 31, 1987, the State was called upon to appropriate a
total of $162.8 million to make up deficiencies in the debt service reserve
funds of HFA pursuant to moral obligation provisions. The State has not
been called upon to make such payments since the 1986-87 fiscal year and no
payments are anticipated during the 1993-94 fiscal year.
UDC has experienced, and expects to continue to experience, financial
difficulties with the housing programs it had undertaken prior to 1975,
because a substantial number of these housing program mortgagors are unable
to make full payments on their mortgage loans. Through a subsidiary, UDC is
currently attempting to increase its rate of collection by accelerating its
program of foreclosures and by entering into settlement agreements. UDC has
been, and will remain, dependent upon the State for appropriations to meet
its operating expenses. The State also has appropriated money to assist in
the curing of a default by UDC on notes which did not contain the State's
moral obligation provision.
The Metropolitan Transportation Authority (the "MTA") oversees New York
City's subway and bus lines by its affiliates, the New York City Transit
Authority and the Manhattan and Bronx Surface Transit Operating Authority
(collectively, the "TA"). Through MTA's subsidiaries, the Long Island Rail
Road Company, the Metro-North Commuter Railroad Company and the Metropolitan
Suburban Bus Authority, the MTA operates certain commuter rail and bus lines
in the New York metropolitan area. In addition, the Staten Island Rapid
Transit Authority, an MTA subsidiary, operates a rapid transit line on
Staten Island. Through its affiliated agency, the Triborough Bridge and
Tunnel Authority (the "TBTA"), the MTA operates certain toll bridges and
tunnels. Because fare revenues are not sufficient to finance the mass
transit portion of these operations, the MTA has depended and will continue
to depend for operating support upon a system of State, local government and
TBTA support and, to the extent available, Federal operating assistance,
including loans, grants and operating subsidies.
The TA and the commuter railroads, which are on a calendar fiscal year,
ended 1993 with their budgets balanced on a cash basis. The TA had a
closing cash balance of approximately $39 million.
Over the past several years the State has enacted several
taxes--including a surcharge on the profits of banks, insurance corporations
and general business corporations doing business in the 12-county region
(the "Metropolitan Transportation Region") served by the MTA and a special
.25% regional sales and use tax--that provide additional revenues for mass
transit purposes, including assistance to the MTA. The surcharge, which
expires in November 1995, yielded $533 million in calendar year 1993, of
which the MTA was entitled to receive approximately 90%, or approximately
$480 million.
For 1994, the TA projects that it will end the year with $77.6 million
cash surplus. For the 1994-95 State fiscal year, total State assistance to
the MTA is estimated at $1.3 billion.
A subway fire on December 28, 1990 and a subway derailment on August
28, 1991, each of which caused fatalities and many injuries, have given rise
to substantial claims for damages against both the TA and the City.
In 1981, the State Legislature authorized procedures for the adoption,
approval and amendment of a five-year plan for the capital program designed
to upgrade the performance of the MTA's transportation systems and to
supplement, replace and rehabilitate facilities and equipment, and also
granted certain additional bonding authorization therefor.
On April 5, 1993, the Legislature approved, and the Governor
subsequently signed into law, legislation authorizing a five-year $9.56
billion capital plan for the MTA for 1992-1996. The MTA has submitted a
1992-1996 Capital Program based on this legislation for the approval of the
MTA Capital Program Review Board (the "CPRB"), as State law requires. On
July 1, 1993, the CPRB indicated that it was withholding approval pending
the resolution of certain related issues. If approved, the 1992-1996
Capital Program would succeed two previous five-year capital programs of the
periods covering 1982-1986 and 1987-1991. The 1987-1991 Capital Program
totalled approximately $8.0 billion, including $6.2 billion for TA capital
projects.
The 1992-1996 Capital Program would supersede a one-year program
adopted in 1992. State budget legislation for the 1992-93 fiscal year had
required the MTA to submit a one-year capital program for 1992 instead of a
five-year program. The one-year program, which contained $1.635 billion of
projects for transit and commuter facilities combined, was approved by the
CPRB in May 1992, but the five-year program for 1992-1996, required to be
submitted subsequently by the MTA as an amendment to the one-year plan, was
disapproved without prejudice by the CPRB in December 1992.
There can be no assurance that such governmental actions will be taken,
that sources currently identified will not be decreased or eliminated, or
that the 1992-1996 Capital Program will not be delayed or reduced. If the
MTA capital program is delayed or reduced because of funding shortfalls or
other factors, ridership and fare revenues may decline, which could, among
other things, impair the MTA's ability to meet its operating expenses
without additional State assistance.
The cities, towns, villages and school districts of the State are
political subdivisions of the State with the powers granted by the State
Constitution and statutes. As the sovereign, the State retains broad powers
and responsibilities with respect to the government, finances and welfare of
these political subdivisions, especially in education and social services.
In recent years the State has been called upon to provide added financial
assistance to certain localities.
Other Localities. Certain localities in addition to the City could
have financial problems leading to requests for additional State assistance
during the State's 1994-95 fiscal year and thereafter. The potential impact
on the State of such actions by localities is not included in the
projections of the State receipts and disbursements in the State's 1994-95
fiscal year.
Municipalities and school districts have engaged in substantial
short-term and long-term borrowings. In 1992, the total indebtedness of all
localities in the State, other than the City, was approximately $15.7
billion. A small portion (approximately $71.6 million) of this indebtedness
represented borrowing to finance budgetary deficits and was issued pursuant
to enabling State legislation. State law requires the Comptroller to review
and make recommendations concerning the budgets of those local government
units other than the City authorized by State law to issue debt to finance
deficits during the period that such deficit financing is outstanding.
Seventeen localities had outstanding indebtedness for deficit financing at
the close of their fiscal year ending in 1992.
Certain proposed Federal expenditure reductions would reduce, or in
some cases eliminate, Federal funding of some local programs and accordingly
might impose substantial increased expenditure requirements on affected
localities to increase local revenues to sustain those expenditures. If the
State, the City or any of the Agencies were to suffer serious financial
difficulties jeopardizing their respective access to the public credit
markets, the marketability of notes and bonds issued by localities within
the State could be adversely affected. Localities also face anticipated and
potential problems resulting from certain pending litigation, judicial
decisions and long-range economic trends. The longer-range, potential
problems of declining city population, increasing expenditures and other
economic trends could adversely affect localities and require increasing
State assistance in the future.
Because of significant fiscal difficulties experienced from time to
time by the City of Yonkers, a Financial Control Board was created by the
State in 1984 to oversee Yonkers' fiscal affairs. Future actions taken by
the Governor or the State Legislature to assist Yonkers in this crisis could
result in the allocation of State resources in amounts that cannot yet be
determined.
Certain litigation pending against the State or its officers or
employees could have a substantial or long-term adverse effect on State
finances. Among the more significant of these litigations are those that
involve: (i) the validity and fairness of agreements and treaties by which
various Indian tribes transferred title to the State of approximately six
million acres of land in central New York; (ii) certain aspects of the
State's Medicaid rates and regulations, including reimbursements to
providers of mandatory and optional Medicaid services; (iii) contamination
in the Love Canal area of Niagara Falls; (iv) a challenge to the State's
practice of reimbursing certain Office of Mental Health patient-care
expenses with clients' Social Security benefits; (v) a challenge to the
methods by which the State reimburses localities for the administrative
costs of food stamp programs; (vi) a challenge to the State's possession of
certain funds taken pursuant to the State's Abandoned Property law; (vii)
alleged responsibility of State officials to assist in remedying racial
segregation in the City of Yonkers; (viii) an action, in which the State is
a third party defendant, for injunctive or other appropriate relief,
concerning liability for the maintenance of stone groins constructed along
certain areas of Long Island's shoreline; (ix) actions challenging the
constitutionality of legislation enacted during the 1990 legislative session
which changed the actuarial funding methods for determining contributions to
State employee retirement systems; (x) an action against State and City
officials alleging that the present level of shelter allowance for public
assistance recipients is inadequate under statutory standards to maintain
proper housing; (xi) an action challenging legislation enacted in 1990 which
had the effect of deferring certain employer contributions to the State
Teachers' Retirement System and reducing State aid to school districts by a
like amount; (xii) a challenge to the constitutionality of financing
programs of the Thruway Authority authorized by Chapters 166 and 410 of the
Laws of 1991 (described below in this Part); (xiii) a challenge to the
constitutionality of financing programs of the Metropolitan Transportation
Authority and the Thruway Authority authorized by Chapter 56 of the Laws of
1993 (described below in this Part); (xiv) challenges to the delay by the
State Department of Social Services in making two one-week Medicaid payments
to the service providers; (xv) challenges by commercial insurers, employee
welfare benefit plans, and health maintenance organizations to provisions of
Section 2807-c of the Public Health Law which impose 13%, 11% and 9%
surcharges on inpatient hospital bills and a bad debt and charity care
allowance on all hospital bills paid by such entities; (xvi) challenges to
the promulgation of the State's proposed procedure to determine the
eligibility for and nature of home care services for Medicaid recipients;
(xvii) a challenge to State implementation of a program which reduces
Medicaid benefits to certain home-relief recipients; and (xviii) challenges
to the rationality and retroactive application of State regulations
recalibrating nursing home Medicaid rates.
Adverse developments or decisions in such cases could affect the
ability of the State to maintain a balanced 1994-95 State Financial Plan.
(2) New York City. In the mid-1970s, the City had large accumulated
past deficits and until recently was not able to generate sufficient tax and
other ongoing revenues to cover expenses in each fiscal year. However, the
City's operating results for the fiscal year ending June 30, 1993 were
balanced in accordance with GAAP, the eleventh consecutive year in which the
City achieved balanced operating results in accordance with GAAP. The
City's ability to maintain balanced operating results in future years is
subject to numerous contingencies and future developments.
The City's economy, whose rate of growth slowed substantially over the
past three years, is currently in recession. During the 1990 and 1991
fiscal years, as a result of the slowing economy, the City has experienced
significant shortfalls in almost all of its major tax sources and increases
in social services costs, and has been required to take actions to close
substantial budget gaps in order to maintain balanced budgets in accordance
with the Financial Plan.
In 1975, the City became unable to market its securities and entered a
period of extraordinary financial difficulties. In response to this crisis,
the State created MAC to provide financing assistance to the City and also
enacted the New York State Financial Emergency Act for the City of New York
(the "Emergency Act") which, among other things, created the Financial
Control Board (the "Control Board") to oversee the City's financial affairs
and facilitate its return to the public credit markets. The State also
established the Office of the State Deputy Comptroller ("OSDC") to assist
the Control Board in exercising its powers and responsibilities. On June
30, 1986, the Control Board's powers of approval over the City Financial
Plan were suspended pursuant to the Emergency Act. However, the Control
Board, MAC and OSDC continue to exercise various monitoring functions
relating to the City's financial condition. The City prepares and operates
under a four-year financial plan which is submitted annually to the Control
Board for review and which the City periodically updates.
The City's independently audited operating results for each of its
fiscal years from 1981 through 1993 show a General Fund surplus reported in
accordance with GAAP. The City has eliminated the cumulative deficit in its
net General Fund position. In addition, the City's financial statements for
the 1993 fiscal year received an unqualified opinion from the City's
independent auditors, the eleventh consecutive year the City has received
such an opinion.
In August 1993, the City adopted and submitted to the Control Board for
its review a four-year Financial Plan covering fiscal years 1994 through
1997 (the "Financial Plan"). The Financial Plan was based on the City's
fiscal year 1994 expense budget adopted June 14, 1993 as well as certain
changes incorporated subsequent to the budget adoption process. On November
23, 1993, the City adopted and submitted to the Control Board for its review
a first quarter modification to the Financial Plan (the "November
Modification") incorporating various re-estimates of revenues and
expenditures. For fiscal year 1994, the November Modification includes
additional resources stemming primarily from the City Comptroller's fiscal
year 1993 annual audit, savings from a reduction in prior years' accrued
expenditures, and higher State and Federal aid resulting from claims by the
City for reimbursement of various social services costs. These resources
were used to fund new needs in the November Modification including higher
costs in the uniformed agencies, at the Board of Education (the "BoE") and
for certain social services, the unlikelihood of the sale of the Off-Track
Betting Corporation (the "OTB"), and lower estimates of miscellaneous and
other revenues. After taking these adjustments into account, the November
Modification projects a balanced budget for fiscal year 1994, based upon
revenues of $31,585 billion. For fiscal years 1995, 1996 and 1997, the
November Modification projects budget gaps of $1.730 billion, $2.513 billion
and $2.699 billion, respectively. These gaps are higher by about $450
million in fiscal year 1995 and by about $700 million in each of fiscal
years 1996 and 1997 than in the Financial Plan, primarily on account of the
nonrecurring value of the fiscal year 1994 revenue adjustments, the loss of
certain one-time resources funding BoE fiscal year 1994 spending needs, and
the reclassification of anticipated State aid from the baseline revenue
estimates to the gap-closing program. To offset these larger gaps, the
November Modification relies on additional City, State and other actions.
On December 1, 1993, a three-member panel appointed by the Mayor to
address City structural budget imbalance released a report setting forth its
findings and recommendations. In its report, the panel noted that budget
imbalance is likely to be greater than the City now projects by $255 million
in fiscal year 1995, rising to nearly $1.5 billion in fiscal year 1997. The
report provided a number of options that the City should consider in
addressing the structural balance issue such as severe cuts in City-funded
personnel levels, increases in residential property taxes and the sales tax,
and the imposition of bridge tolls and solid waste collection fees. The
report also noted that additional State actions will be required in many
instances to allow the City to cut its budget without grave damage to basic
services.
On December 21, 1993, OSDC issued a report reviewing the November
Modification. The report noted that while the outlook for fiscal year 1994
has improved since August, it will be necessary for the City to manage its
budget aggressively in order to stay on course for budget balance this year.
For fiscal years 1995 through 1997, the report expressed concern that the
gaps identified by the City in the November Modification are the largest as
a percentage of City-fund revenues that the City has faced at this point in
the fiscal year since budget balance in accordance with GAAP was first
achieved in fiscal year 1981.
On December 21, 1993, the staff of the Control Board issued its report
on the November Modification. The report states that the plan is now more
realistic in terms of the gaps it portrays and the solutions it offers.
However, the solutions are mostly limited to fiscal year 1994 while the gap
for fiscal year 1995 has been increased by $450 million. Beginning in
fiscal year 1995, budget gaps average over $1 billion annually. Therefore,
the staff recommends that prompt action to replace many current-year one-
shots with recurring savings is critical.
On February 2, 1994, the Mayor presented to the City Council and the
Control Board a mid-year modification to the Financial Plan (the "February
Modification"). The February Modification projects a balanced budget for
fiscal year 1994, based upon revenues of $31.735 billion, including a
general reserve of $81 million. For fiscal years 1995, 1996 and 1997, the
February Modification projects gaps of $2.261 billion, $3.167 billion and
$3.253 billion, respectively, and assumes no wage and salary increases
beyond the expiration of current labor agreements which expire in fiscal
years 1995 and 1996. These gaps have grown since November by about $530
million in fiscal year 1995, and $650 million and $550 million in fiscal
years 1996 and 1997, respectively, owing in large part to lower estimates of
real property tax revenues. To close the budget gap projected for fiscal
year 1995, the February Modification includes a gap-closing program that
consists of the following major elements: (i) an agency program of $1.048
billion; (ii) fringe benefit and pension savings of $400 million; (iii) an
intergovernmental aid package of $400 million; (iv) a workforce reduction
program of $144 million; and (v) the assumption of a $234 million surplus
roll from fiscal year 1994. Implementation of many of the gap-closing
initiatives requires the cooperation of the municipal labor unions, the City
Council and the State and Federal governments. The February Modification
also includes a tax reduction program, with most of the financial impact
affecting the later years of the Plan period.
The City requires certain amounts of financing for seasonal and capital
spending purposes. The City has issued $1.75 billion of notes for seasonal
financing purposes during the 1994 fiscal year. The City's capital
financing program projects long-term financing requirements of approximately
$16.6 billion for the City's fiscal years 1994 through 1997 for the
construction and rehabilitation of the City's infrastructure and other fixed
assets. The major capital requirement include expenditures for the City's
water supply system, and waste disposal systems, roads, bridges, mass
transit, schools and housing. In addition, the City and the Municipal Water
Finance Authority have issued about $1.8 billion in refunding bonds in the
1994 fiscal year.
State Economic Trends. The City accounts for approximately 41% of the
State's population and personal income, and the City's financial health
affects the State in numerous ways. The State has long been one of the
wealthiest states in the nation. For decades, however, the State economy
has grown more slowly than that of the nation as a whole, resulting in the
gradual erosion of its relative economic affluence. The causes of this
relative decline are varied and complex, in many cases involving national
and international developments beyond the State's control. In recent years,
the State's economic position has improved in a manner consistent with that
of the Northeast as a whole.
Part of the reason for the long-term relative decline in the State's
economy has been attributed to the combined State and local tax burden,
which is among the highest in the United States. The burdens of State and
local taxation, in combination with many other causes of regional economic
dislocation, may have contributed to the decision of businesses and
individuals to relocate outside, or not locate within, the State. In 1987,
the State enacted a major personal income tax reduction and reform program
and also reduced the tax rate on corporation income. In addition, the State
has provided various tax incentives to encourage business relocation and
expansion. The State, however, in its 1989-90, 1990-91 and 1991-92 fiscal
years substantially increased taxes and fees to help close projected budget
gaps in those years, and in 1990-91, 1991-92 and 1992-93 delayed and
restructured the remainder of the personal income tax reduction program
originally enacted in 1987. Under legislation proposed with the 1993-94
budget, the rules for calculating tax liability for the 1993 tax year will
be the same as those for the 1992 tax year (deferring for a fourth year a
previously scheduled tax reduction), and the tax reduction program will be
frozen at current rates. Also, in July 1991 State legislation was enacted
to phase out the benefit of graduated income tax tables for taxpayers with
adjusted gross income above $100,000.
APPENDIX B
Description of S&P and Moody's ratings:
S&P
Municipal Bond Ratings
An S&P municipal bond rating is a current assessment of the
creditworthiness of an obligor with respect to a specific obligation.
The ratings are based on current information furnished by the issuer or
obtained by S&P from other sources it considers reliable, and will include:
(1) likelihood of default-capacity and willingness of the obligor as to the
timely payment of interest and repayment of principal in accordance with the
terms of the obligation; (2) nature of and provisions of the obligation; and
(3) protection afforded by, and relative position of, the obligation in the
event of bankruptcy, reorganization or other arrangement under the laws of
bankruptcy and other laws affecting creditors' rights.
AAA
Debt rated AAA has the highest rating assigned by S&P. Capacity to pay
interest and repay principal is extremely strong.
AA
Debt rated AA has a very strong capacity to pay interest and repay
principal and differs from the highest rated issues only in a small degree.
A
Debt rated A has a strong capacity to pay interest and repay principal
although it is somewhat more susceptible to the adverse effects of changes
in circumstances and economic conditions than debt in higher rated
categories.
BBB
Debt rated BBB is regarded as having an adequate capacity to pay
interest and repay principal. Whereas it normally exhibits adequate
protection parameters, adverse economic conditions or changing circumstances
are more likely to lead to a weakened capacity to pay interest and repay
principal for debt in this category than in higher rated categories.
BB, B, CCC, CC, C
Debt rated BB, B, CCC, CC or C is regarded as having predominantly
speculative characteristics with respect to capacity to pay interest and
repay principal. BB indicates the least degree of speculation and C the
highest degree of speculation. While such debt will likely have some
quality and protective characteristics, these are outweighed by large
uncertainties or major risk exposures to adverse conditions.
BB
Debt rated BB has less near-term vulnerability to default than other
speculative grade debt. However, it faces major ongoing uncertainties or
exposure to adverse business, financial or economic conditions which could
lead to inadequate capacity to meet timely interest and principal payment.
B
Debt rated B has a greater vulnerability to default but presently has
the capacity to meet interest payments and principal repayments. Adverse
business, financial or economic conditions would likely impair capacity or
willingness to pay interest and repay principal.
CCC
Debt rated CCC has a current identifiable vulnerability to default, and
is dependent upon favorable business, financial and economic conditions to
meet timely payments of interest and repayment of principal. In the event
of adverse business, financial or economic conditions, it is not likely to
have the capacity to pay interest and repay principal.
CC
The rating CC is typically applied to debt subordinated to senior debt
which is assigned an actual or implied CCC rating.
C
The rating C is typically applied to debt subordinated to senior debt
which is assigned an actual or implied CCC- debt rating.
D
Bonds rated D are in default and payment of interest and/or repayment
of principal is in arrears.
Plus (+) or minus (-): The ratings from AA to CCC may be modified by
the addition of a plus or minus designation to show relative standing within
the major ratings categories.
Municipal Note Ratings
SP-1
The issuers of these municipal notes exhibit very strong or strong
capacity to pay principal and interest. Those issues determined to possess
overwhelming safety characteristics are given a plus (+) designation.
SP-2
The issuers of these municipal notes exhibit satisfactory capacity to
pay principal and interest.
Commercial Paper Ratings
The designation A-1 by S&P indicates that the degree of safety
regarding timely payment is either overwhelming or very strong. Those
issues determined to possess overwhelming safety characteristics are denoted
with a plus sign (+) designation. Capacity for timely payment on issues
with an A-2 designation is strong. However, the relative degree of safety
is not as high as for issues designated A-1.
Moody's
Municipal Bond Ratings
Aaa
Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to
as "gilt edge." Interest payments are protected by a large or by an
exceptionally stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can be visualized
are most unlikely to impair the fundamentally strong position of such
issues.
Aa
Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what generally are
known as high-grade bonds. They are rated lower than the best bonds because
margins of protection may not be as large as in Aaa securities or
fluctuation of protective elements may be of greater amplitude or there may
be other elements present which make the long-term risks appear somewhat
larger than in Aaa securities.
A
Bonds which are rated A possess many favorable investment attributes
and are to be considered as upper medium-grade obligations. Factors giving
security to principal and interest are considered adequate, but elements may
be present which suggest a susceptibility to impairment sometime in the
future.
Baa
Bonds which are rated Baa are considered as medium-grade obligations,
i.e., they are neither highly protected nor poorly secured. Interest
payments and principal security appear adequate for the present but certain
protective elements may be lacking or may be characteristically unreliable
over any great length of time. Such bonds lack outstanding investment
characteristics and in fact have speculative characteristics as well.
Ba
Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection of
interest and principal payments may be very moderate, and thereby not well
safeguarded during both good and bad times over the future. Uncertainty of
position characterizes bonds in this class.
B
Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance
of other terms of the contract over any long period of time may be small.
Caa
Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal
or interest.
Ca
Bonds which are rated Ca present obligations which are speculative in a
high degree. Such issues are often in default or have other marked
shortcomings.
C
Bonds which are rated C are the lowest rated class of bonds, and issues
so rated can be regarded as having extremely poor prospects of ever
attaining any real investment standing.
Moody's applies the numerical modifiers 1, 2 and 3 to show relative
standing within the major ratings categories, except in the Aaa category and
in the categories below B. The modifier 1 indicates a ranking for the
security in the higher end of a rating category; the modifier 2 indicates a
mid-range ranking; and the modifier 3 indicates a ranking in the lower end
of a rating category.
Municipal Note Ratings
Moody's ratings for state and municipal notes and other short-term
loans are designated Moody's Investment Grade (MIG). Such ratings recognize
the difference between short-term credit risk and long-term risk. Factors
affecting the liquidity of the borrower and short-term cyclical elements are
critical in short-term ratings, while other factors of major importance in
bond risk, long-term secular trends for example, may be less important over
the short run.
A short-term rating may also be assigned on an issue having a demand
feature. Such ratings will be designated as VMIG or, if the demand feature
is not rated, as NR. Short-term ratings on issues with demand features are
differentiated by the use of the VMIG symbol to reflect such characteristics
as payment upon periodic demand rather than fixed maturity dates and payment
relying on external liquidity. Additionally, investors should be alert to
the fact that the source of payment may be limited to the external liquidity
with no or limited legal recourse to the issuer in the event the demand is
not met.
Moody's short-term ratings are designated Moody's Investment Grade as
MIG 1 or VMIG 1 through MIG 4 or VMIG 4. As the name implies, when Moody's
assigns a MIG or VMIG rating, all categories define an investment grade
situation.
MIG 1/VMIG 1
This designation denotes best quality. There is present strong
protection by established cash flows, superior liquidity support or
demonstrated broad-based access to the market for refinancing.
MIG 2/VMIG 2
This designation denotes high quality. Margins of protection are ample
although not so large as in the preceding group.
Commercial Paper Ratings
The rating Prime-1 (P-1) is the highest commercial paper rating
assigned by Moody's. Issuers of P-1 paper must have a superior capacity for
repayment of short-term promissory obligations, and ordinarily will be
evidenced by leading market positions in well established industries, high
rates of return on funds employed, conservative capitalization structures
with moderate reliance on debt and ample asset protection, broad margins in
earnings coverage of fixed financial charges and high internal cash
generation, and well established access to a range of financial markets and
assured sources of alternate liquidity.
Issuers (or related supporting institutions) rated Prime-2 (P-2) have a
strong capacity for repayment of short-term promissory obligations. This
ordinarily will be evidenced by many of the characteristics cited above but
to a lesser degree. Earnings trends and coverage ratios, while sound, will
be more subject to variation. Capitalization characteristics, while still
appropriate, may be more affected by external conditions. Ample alternate
liquidity is maintained. Fitch
Municipal Bond Ratings
The ratings represent Fitch's assessment of the issuer's ability to
meet the obligations of a specific debt issue or class of debt. The ratings
take into consideration special features of the issue, its relationship to
other obligations of the issuer, the current financial condition and
operative performance of the issuer and of any guarantor, as well as the
political and economic environment that might affect the issuer's future
financial strength and credit quality.
AAA
Bonds rated AAA are considered to be investment grade and of the
highest credit quality. The obligor has an exceptionally strong ability to
pay interest and repay principal, which is unlikely to be affected by
reasonable foreseeable events.
AA
Bonds rated AA are considered to be investment grade and of very high
credit quality. The obligor's ability to pay interest and repay principal
is very strong, although not quite as strong as bonds rated AAA. Because
bonds rated in the AAA and AA categories are not significantly vulnerable to
foreseeable future developments, short-term debt of these issuers is
generally rated F-1+.
A
Bonds rated A are considered to be investment grade and of high credit
quality. The obligor's ability to pay interest and repay principal is
considered to be strong, but may be more vulnerable to adverse changes in
economic conditions and circumstances than bonds with higher ratings.
BBB
Bonds rated BBB are considered to be investment grade and of
satisfactory credit quality. The obligor's ability to pay interest and
repay principal is considered to be adequate. Adverse changes in economic
conditions and circumstances, however, are more likely to have an adverse
impact on these bonds and, therefore, impair timely payment. The likelihood
that the ratings of these bonds will fall below investment grade is higher
than for bonds with higher ratings.
BB
Bonds rated BB are considered speculative. The obligor's ability to
pay interest and repay principal may be affected over time by adverse
economic changes. However, business and financial alternatives can be
identified which could assist the obligor in satisfying its debt service
requirements. B
Bonds rated B are considered highly speculative. While bonds in this
class are currently meeting debt service requirements, the probability of
continued timely payment of principal and interest reflects the obligor's
limited margin of safety and the need for reasonable business and economic
activity throughout the life of the issue.
CCC
Bonds rated CCC have certain identifiable characteristics, which, if
not remedied, may lead to default. The ability to meet obligations requires
an advantageous business and economic environment.
CC
Bonds rated CC are minimally protected. Default payment of interest
and/or principal seems probable over time.
C
Bonds rated C are in imminent default in payment of interest or
principal.
DDD, DD and D
Bonds rated DDD, DD and D are in actual or imminent default of interest
and/or principal payments. Such bonds are extremely speculative and should
be valued on the basis of their ultimate recovery value in liquidation or
reorganization of the obligor. DDD represents the highest potential for
recovery on these bonds, and D represents the lowest potential for recovery.
Plus (+) and minus (-) signs are used with a rating symbol to indicate
the relative position of a credit within the rating category. Plus and
minus signs, however, are not used in the AAA category covering 12-36
months, or in the DDD, DD or D categories.
Short-Term Ratings
Fitch's short-term ratings apply to debt obligations that are payable
on demand or have original maturities of up to three years, including
commercial paper, certificates of deposit, medium-term notes, and municipal
and investment notes.
Although the credit analysis is similar to Fitch's bond rating
analysis, the short-term rating places greater emphasis than bond ratings on
the existence of liquidity necessary to meet the issuer's obligations in a
timely manner.
F-1+
Exceptionally Strong Credit Quality. Issues assigned this rating are
regarded as having the strongest degree of assurance for timely payment.
F-1
Very Strong Credit Quality. Issues assigned this rating reflect an
assurance of timely payment only slightly less in degree than issues rated
F-1+.
F-2
Good Credit Quality. Issues carrying this rating have a satisfactory
degree of assurance for timely payments, but the margin of safety is not as
great as the F-1+ and F-1 categories.
<TABLE>
<CAPTION>
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS MAY 31, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS--100.0% AMOUNT VALUE
------------- -------------
<S> <C> <C>
Broome County Industrial Development Agency, IDR, Refunding, VRDN
(Bing Realty Co. Project) 2.90% (LOC; Meridian Bank Corp.) (a,b)........ $ 1,450,000 $ 1,450,000
Erie County:
RAN 3.30%, 8/5/94 (LOC; Mitsubishi Bank) (b)............................ 10,000,000 10,003,437
TAN 2.75%, 12/30/94 (LOC; Union Bank of Switzerland) (b)................ 7,000,000 7,011,087
Fulton County Industrial Development Agency, Revenue, VRDN
(SLM Action Sports Project) 2.925% (LOC; Royal Bank of Canada) (a,b).... 600,000 600,000
Half Hallow Hills Central School District, Huntington and Babylon, TAN
3%, 6/24/94............................................................. 8,000,000 8,002,951
Town of Islip Industrial Development Agency, IDR, VRDN (Radiation Dynamics
Project)
3.25%, Series A (LOC; Sumitomo Bank) (a,b).............................. 5,900,000 5,900,000
Metropolitan Transport Authority, Commuter Facilities Revenue, VRDN
2.55% (LOC: Bank of Tokyo, Industrial Bank of Japan, Mitsubishi Bank,
Morgan Bank, National Westminster Bank and Sumitomo Bank) (a,b)......... 34,800,000 34,800,000
Monroe County, BAN 3%, 6/10/94.............................................. 6,000,000 6,000,648
Monroe County Industrial Development Agency, Revenue, VRDN (Enbi Corp.)
2.55% (LOC; ABN-Amro Bank) (a,b)........................................ 4,700,000 4,700,000
City of New York:
RAN 3.50%, 6/30/94...................................................... 5,000,000 5,002,434
VRDN:
3.20%, Series A-4 (SBPA; Chemical Bank) (a)........................... 4,000,000 4,000,000
Refunding 3.15%, Series D (SBPA; Citibank) (a)........................ 7,500,000 7,500,000
Trust Cultural Resource Revenue, Refunding (American Museum of Natural History)
2.60%, Series A (Insured; MBIA and BPA; Credit Suisse) (a)........ 6,000,000 6,000,000
New York City Housing Development Corp., Mortgage Revenue, VRDN:
(Park Gate Tower) 2.50% (LOC; Citibank) (a,b)........................... 675,000 675,000
(Residential East 17th Street) 2.95%, Series A (LOC; Chemical Bank) (a,b) 13,600,000 13,600,000
(Stroheim and Romann Project) 2.65% (LOC; WestDeutsche Landesbank) (a,b) 5,700,000 5,700,000
New York City Industrial Development Agency, VRDN:
Civil Facility Revenue (Mercy College Project)
2.60% (LOC; The Bank of New York) (a,b).............................. 2,100,000 2,100,000
IDR (La Guardia Association Project) 2.85% (LOC; Banque Indosuez) (a,b). 13,700,000 13,700,000
New York State Dormitory Authority, Revenues, CP (Sloan Kettering Memorial Hospital)
2.55%, Series A, 7/22/94 (LOC; Fuji Bank) (b)........................... 6,000,000 6,000,000
New York State Energy, Research and Development Authority:
PCR:
(LILCO Project) 3% Series A, 3/1/95 (LOC; Deutsche Bank) (b).......... 12,000,000 12,000,000
(New York State Electric and Gas):
2.75%, Series D, 12/1/94 (LOC; Union Bank of Switzerland) (b)..... 11,450,000 11,450,000
3.25%, 3/15/95 (LOC; JP Morgan) (b)............................... 5,000,000 5,000,000
VRDN:
(Central Hudson Gas and Electric Co. Project)
2.95%, Series A (LOC; Bankers Trust) (a,b)...................... 2,600,000 2,600,000
(Niagara Mohawk Project Corp.)
2.90%, Series C (LOC; Canadian Imperial Bank of Commerce) (a,b). 6,200,000 6,200,000
New York State Environmental Facilities Corp., RRR, VRDN
(Equity Huntington Project) 3.05% (LOC; Union Bank of Switzerland) (a,b) 4,200,000 4,200,000
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994
PRINCIPAL
TAX EXEMPT INVESTMENTS (CONTINUED) AMOUNT VALUE
------------- -------------
New York State Housing Finance Agency, Revenue, VRDN:
(Liberty View Apartment Housing) 2.65% (LOC; Chemical Bank) (a,b)....... $ 3,800,000 $ 3,800,000
Multi-Family Housing 2.55%, Series A (a)................................ 3,100,000 3,100,000
New York State Job Development Authority, VRDN 2.75%, Series C1 Thru C30
(LOC; Sumitomo Bank) (a,b).............................................. 5,450,000 5,450,000
New York State Local Government Assistance Corp., VRDN:
2.50%, Series A (LOC: Credit Suisse, Swiss Bank Corp. and
Union Bank of Switzerland) (a,b)...................................... 29,500,000 29,500,000
2.50%, Series A (LOC: Credit Suisse and Swiss Bank Corp.) (a,b)......... 15,000,000 15,000,000
New York State Medical Care Facilities Finance Agency, Revenue, VRDN:
(Childrens Hospital Buffalo) 2.65%, Series A (LOC; Barclays Bank) (a,b). 4,700,000 4,700,000
(Lenox Hill Hospital) 2.75%, Series A (LOC; Chemical Bank) (a,b)........ 2,700,000 2,700,000
New York State Mortgage Agency, Revenue:
3.15%, Series 40-B, 9/29/94 (GIC; Morgan Guaranty and Collateralized;
U.S. Treasury Bills)................................................. 13,500,000 13,500,000
(Homeowner Mortgage) 3.10%, Series 37-B, 9/29/94........................ 10,000,000 10,000,000
Onondaga County Industrial Development Agency, IDR, VRDN
(Edgecomb Metals Co. Project) 2.75% (LOC; Banque Nationale de Paris) (a,b) 3,100,000 3,100,000
Orange County Industrial Development Agency, IDR, VRDN
(Minolta Advance Technology Project) 3.25% (LOC; Sanwa Bank) (a,b)...... 5,900,000 5,900,000
Rochester County, BAN 3.50%, Series III, 3/13/95............................ 17,730,000 17,767,632
Suffolk County, TAN:
2.70%, Series I, 8/16/94 (LOC; Mitsubishi Bank) (b)..................... 15,000,000 15,020,103
3%, Series II, 9/15/94 (LOC; Chemical Bank) (b)......................... 10,000,000 10,004,234
Syracuse Industrial Development Agency, Civic Facilities Revenue, VRDN
(Syracuse University Project) 3% (LOC; Morgan Guaranty Trust) (a,b)..... 3,000,000 3,000,000
Triborough Bridge and Tunnel Authority, Special Obligation, VRDN
2.60% (Insured; FGIC) (a)............................................... 10,000,000 10,000,000
Westchester County, TAN 2.75%, 12/15/94..................................... 15,000,000 15,007,825
-------------
TOTAL INVESTMENTS
(cost $351,745,351)..................................................... $351,745,351
=============
</TABLE>
<TABLE>
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
BAN Bond Anticipation Notes MBIA Municipal Bond Insurance Association
BPA Bond Purchase Agreement PCR Pollution Control Revenue
CP Commercial Paper RAN Revenue Anticipation Notes
FGIC Financial Guaranty Insurance Corporation RRR Resources Recovery Revenue
GIC Guaranteed Investment Contract SBPA Standby Bond Purchase Agreement
IDR Industrial Development Revenue TAN Tax Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (C) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 88.1%
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) .9
Not Rated (f) Not Rated (f) Not Rated (f) 11.0
--------
100.0%
=======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(b) Secured by letters of credit. At May 31, 1994, 71.5% of the Fund's
net assets are backed by letters of credit issued by domestic banks,
foreign banks and brokerage firms.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) P1 and A1 are the highest ratings assigned tax-exempt commercial
paper by Moody's and Standard & Poor's, respectively.
(e) Notes which are not F, MIG or SP rated are represented by bond
ratings of the issuers.
(f) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Fund's Board of Trustees to be of
comparable quality to those rated securities in which the Fund may
invest.
See notes to financial statements.
<TABLE>
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a)........................... $351,745,351
Cash.................................................................... 3,548,516
Interest receivable..................................................... 2,371,495
Prepaid expenses........................................................ 45,961
-------------
357,711,323
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 146,917
Payable for investment securities purchased............................. 13,500,000
Accrued expenses........................................................ 100,135 13,747,052
----------- -------------
NET ASSETS ................................................................ $343,964,271
=============
REPRESENTED BY:
Paid-in capital......................................................... $343,990,351
Accumulated net realized (loss) on investments.......................... (26,080)
-------------
NET ASSETS at value applicable to 343,990,351 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest, authorized) $343,964,271
=============
NET ASSET VALUE, offering and redemption price per share
($343,964,271 / 343,990,351 shares)..................................... $1.00
=====
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED MAY 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 8,336,591
EXPENSES:
Management fee_Note 2(a).............................................. $ 1,769,463
Shareholder servicing costs_Note 2(c)................................. 499,819
Custodian fees........................................................ 36,994
Professional fees..................................................... 35,364
Prospectus and shareholders' report_Note 2(b)......................... 24,418
Trustees' fees and expenses_Note 2(d)................................. 11,735
Registration fees..................................................... 5,797
Miscellaneous......................................................... 14,719
-----------
TOTAL EXPENSES.................................................... 2,398,309
-------------
INVESTMENT INCOME--NET...................................................... 5,938,282
NET REALIZED (LOSS) ON INVESTMENTS--NOTE 1(b)............................... (10,006)
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 5,928,276
=============
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MAY 31,
--------------------------------
1993 1994
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 7,384,686 $ 5,938,282
Net realized gain (loss) on investments.............................. 28,042 (10,006)
Net unrealized (depreciation) on investments for the year............ (5,944) ____
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 7,406,784 5,928,276
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net............................................... (7,384,686) (5,938,282)
-------------- --------------
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold........................................ 410,571,260 395,241,865
Dividends reinvested................................................. 6,866,949 5,610,333
Cost of shares redeemed.............................................. (456,407,532) (436,693,846)
-------------- --------------
(DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS..... (38,969,323) (35,841,648)
-------------- --------------
TOTAL (DECREASE) IN NET ASSETS................................. (38,947,225) (35,851,654)
NET ASSETS:
Beginning of year.................................................... 418,763,150 379,815,925
-------------- --------------
End of year.......................................................... $379,815,925 $343,964,271
============== ==============
</TABLE>
See notes to financial statements.
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
Reference is made to Page 2 of the Prospectus dated July 25, 1994.
See notes to financial statements.
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Dreyfus Service
Corporation ("Distributor") acts as the distributor of the Fund's shares,
which are sold to the public without a sales load. The Distributor is a
wholly-owned subsidiary of The Dreyfus Corporation ("Manager").
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Trustees to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Interest income, adjusted
for amortization of premiums and, when appropriate, discounts on investments,
is earned from settlement date and recognized on the accrual basis. Realized
gain and loss from securities transactions are recorded on the identified
cost basis.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income taxes.
The Fund has an unused capital loss carryover of approximately $18,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to May 31, 1994. The
carryover does not include net realized securities losses from November 1,
1993 through May 31, 1994 which are treated, for Federal income tax purposes
as arising in fiscal 1995. If not applied, $15,000 expires in fiscal 1998,
$1,000 expires in fiscal 1999 and $2,000 expires in fiscal 2002.
At May 31, 1994, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .50 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed 11/2% of the average value of the Fund's net
assets for any full fiscal year. There was no expense reimbursement for the
year ended May 31, 1994.
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(B) The Fund has adopted a Service Plan, (the "Plan") pursuant to which
the Fund will bear the costs of preparing, printing and distributing certain
of the Fund's prospectuses and statements of additional information and costs
associated with implementing and operating the Plan, not to exceed the
greater of $100,000 or .005 of 1% of the Fund's average daily net assets for
any full fiscal year. Effective July 14, 1993, the Fund's Plan was
terminated. For the period from June 1, 1993 to July 13, 1993, the Fund was
charged $3,319 pursuant to the Plan.
(C) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
the Distributor an amount not to exceed an annual rate of .25 of 1% of the
value of the Fund's average daily net assets for servicing shareholder
accounts. The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding the
Fund and providing reports and other information, and services related to the
maintenance of shareholder accounts. During the year ended May 31, 1994, the
Fund was charged an aggregate of $185,523 pursuant to the Shareholder
Services Plan.
(D) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each trustee
who is not an "affiliated person" receives an annual fee of $1,500 and an
attendance fee of $250 per meeting.
(E) On December 5, 1993, the Manager entered into an Agreement and Plan
of Merger providing for the merger of the Manager with a subsidiary of Mellon
Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number
of contingencies, including receipt of certain regulatory approvals and
approvals of stockholders of the Manager and of Mellon. The merger is
expected to occur in August 1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's
shareholders before completion of the merger. Proxy materials, approved by
the Fund's Board, recently have been mailed to Fund shareholders.
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS NEW YORK TAX EXEMPT MONEY MARKET FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus New York Tax Exempt Money Market Fund, including the statement of
investments, as of May 31, 1994, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and financial highlights for each of the
years indicated therein. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of May 31, 1994 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus New York Tax Exempt Money Market Fund, at May 31, 1994,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
(Ernst & Young Signature Logo)
New York, New York
July 1, 1994
<TABLE>
<CAPTION>
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF INVESTMENTS MAY 31, 1994
PRINCIPAL
MUNICIPAL BONDS--99.3% AMOUNT VALUE
------------- -------------
<S> <C> <C>
NEW YORK--84.5%
Albany Industrial Development Agency, LR
(New York State Department of Health Building Project) 6.75%, 10/1/1995. $ 270,000 $ 275,562
Albany Parking Authority, Parking Revenue, Refunding:
6.50%, 11/1/2004........................................................ 1,000,000 1,046,460
6.70%, 11/1/2006........................................................ 1,000,000 1,039,040
Battery Park City Authority, Revenue, Refunding
4.80%, 11/1/2001........................................................ 5,405,000 5,227,932
Board Cooperative Educational Services, COP
(Greenport Vocational Facility Project) 7.50%, 10/1/1996................ 505,000 541,688
Buffalo Municipal Water Finance Authority, Water System Revenue
5.50%, 7/1/2005 (Insured; FSA).......................................... 1,200,000 1,205,868
Development Authority of the North Country, Solid Waste Management System Revenue:
6.30%, 7/1/1999......................................................... 1,070,000 1,084,755
6.40%, 7/1/2000......................................................... 1,135,000 1,145,680
Franklin Industrial Development Agency, LR (County Correctional Facility Project)
6.375%, 11/1/2002....................................................... 2,735,000 2,846,150
Franklin Solid Waste Management Authority, Solid Waste System Revenue
6%, 6/1/2005............................................................ 3,635,000 3,611,627
Grand Central District Management Association, Inc., Grand Central
Business Improvement District, Capital Improvement Refunding:
5.10%, 1/1/2008....................................................... 1,130,000 1,028,537
5.125%, 1/1/2009...................................................... 1,190,000 1,069,346
Metropolitan Transportation Authority:
Service Contract Commuter Facilities 5.45%, 7/1/2007.................... 4,330,000 4,138,657
Service Contract Transit Facilities:
7.25%, 7/1/1998....................................................... 3,050,000 3,291,286
6.80%, 7/1/2004....................................................... 1,850,000 1,954,839
6.90%, 7/1/2006....................................................... 3,615,000 3,819,031
Transit Facilities Revenue 6.30%, 7/1/2006.............................. 3,145,000 3,236,016
Trust Tax Exempt Linked Unit
5.103%, 6/30/2002 (Insured; AMBAC) (a)................................ 20,000,000 19,540,800
Nassau County, Refunding (Combined Sewer Districts)
5.30%, 7/1/2006 (Insured; MBIA)......................................... 4,860,000 4,804,304
New York City:
6.25%, 8/1/2002 (Insured; AMBAC)........................................ 950,000 1,020,177
7.50%, 8/15/2002........................................................ 1,210,000 1,317,714
5.75%, 8/1/2003......................................................... 2,740,000 2,720,546
7.75%, 3/15/2004........................................................ 1,000,000 1,104,710
7.75%, 8/15/2004........................................................ 1,000,000 1,115,550
6.375%, 8/1/2005........................................................ 3,670,000 3,716,572
7%, 2/1/2006............................................................ 3,500,000 3,735,550
6%, 8/1/2007............................................................ 2,000,000 1,960,580
New York City Health and Hospital Corp., Revenue 6%, 2/15/2005.............. 2,000,000 1,997,400
New York City Housing Development Corp., MFHR:
4.95%, 5/1/2002......................................................... 1,105,000 1,058,833
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------- -------------
NEW YORK (CONTINUED)
New York City Housing Development Corp., MFHR (continued):
5.05%, 5/1/2003......................................................... $ 1,140,000 $ 1,087,936
5.15%, 5/1/2004......................................................... 1,000,000 950,720
New York City Industrial Development Agency, Revenue:
Civic Facility
(YMCA of Greater New York Project) 7.25%, 8/1/1999.................... 2,300,000 2,374,750
Industrial Development:
8%, Series I, 11/16/1998 (LOC; Algemene Bank Nederland) (b)........... 740,000 757,220
8%, Series J, 11/16/1998 (LOC; Algemene Bank Nederland) (b)........... 1,270,000 1,299,553
7.625%, 11/1/1999 (LOC; Algemene Bank Nederland) (b).................. 1,580,000 1,628,000
(Plaza Packaging Corp. Project)
7.65%, 12/1/2009 (LOC; Barclays Bank of New York) (b)............. 930,000 997,230
New York City Municipal Water Finance Authority, Water and Sewer System Revenue:
5.55%, 6/15/2001........................................................ 1,500,000 1,535,895
6.60%, 6/15/2002........................................................ 3,000,000 3,275,010
5.125%, 6/15/2004....................................................... 4,000,000 3,858,440
New York State:
5.625%, 6/15/1999....................................................... 5,000,000 5,162,250
6.75%, 11/15/2000....................................................... 2,000,000 2,182,960
New York State Bridge Authority, Bridge Revenue:
6.75%, 1/1/1997......................................................... 1,200,000 1,263,000
6.90%, 1/1/1999......................................................... 1,250,000 1,328,500
New York State Dormitory Authority, Revenue:
(Capital District Chapter-Wildwood School) 6.625%, 7/1/1998............. 600,000 635,556
City University:
7.25%, 7/1/2002....................................................... 2,250,000 2,470,478
5.20%, 7/1/2005....................................................... 5,690,000 5,371,246
5.70%, 7/1/2005....................................................... 5,000,000 4,956,650
5.25%, 7/1/2006....................................................... 3,000,000 2,828,700
Refunding:
6.90%, 7/1/1997................................................... 1,050,000 1,113,010
6.25%, 7/1/2003................................................... 4,225,000 4,411,618
6.35%, 7/1/2004................................................... 2,500,000 2,616,300
6.45%, 7/1/2005................................................... 1,500,000 1,580,295
Department of Health, Refunding 5.50%, 7/1/2005......................... 1,000,000 974,390
Highland Community Development Corp.
5.50%, 7/1/2001 (LOC; Marine Midland Bank) (b)........................ 3,500,000 3,520,300
Judicial Facility Lease, Future Income Growth Security
(Suffolk County Issue) 9%, 10/15/2001................................. 3,880,000 4,390,996
Rensselaer Polytechnic:
6.10%, 7/1/1999 (Insured; FGIC)....................................... 1,500,000 1,581,435
4.90%, 7/1/2004 (Insured; MBIA)....................................... 1,700,000 1,642,183
State University Educational Facilities:
7%, 5/15/2000......................................................... 3,000,000 3,231,570
5.50%, 5/15/2005...................................................... 3,500,000 3,411,275
6.10%, 5/15/2005...................................................... 2,630,000 2,657,878
7.625%, 5/15/2005..................................................... 3,000,000 3,443,010
5.50%, 5/15/2008...................................................... 3,000,000 2,850,960
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------- -------------
NEW YORK (CONTINUED)
New York State Environmental Facilities Corp.:
PCR
(State Water Revolving Fund):
7.30%, 6/15/2001.................................................. $ 4,000,000 $ 4,469,760
6.30%, 6/15/2002.................................................. 3,000,000 3,200,280
6.20%, 3/15/2004.................................................. 1,700,000 1,826,259
6.30%, 3/15/2005.................................................. 1,800,000 1,936,728
6.60%, 6/15/2005.................................................. 3,120,000 3,260,088
7.20%, 6/15/2006.................................................. 3,000,000 3,285,390
Special Obligation:
(Riverbank State Park) 7.10%, 4/1/2002................................ 1,130,000 1,232,627
(State Park Infrastructure) 5.75%, 3/15/2008.......................... 2,475,000 2,401,146
New York State Housing Finance Agency:
Revenue:
(Refunding- Health Facilities - New York City) 7.90%,11/1/1999........ 2,250,000 2,527,785
(Suffolk-Help) 8%, 11/1/2001.......................................... 2,665,000 2,875,881
(Urban Rent) 5.90%, 11/1/2003........................................... 4,330,000 4,386,593
New York State Local Government Assistance Corp.:
6.70%, 4/1/2000......................................................... 2,490,000 2,682,104
6.75%, 4/1/2002......................................................... 2,500,000 2,736,400
Zero Coupon, 4/1/2005................................................... 3,865,000 2,086,984
4.80%, 4/1/2005......................................................... 7,500,000 6,925,050
New York State Medical Care Facilities Finance Agency, Revenue:
Hospital and Nursing Home:
(Catholic Medical Center) 7.60%, 8/15/1999 (Insured; FHA)............. 1,000,000 1,113,270
5.875%, 2/15/2008 (Insured; FHA)...................................... 2,215,000 2,206,738
Insured Mortgage (Saint Luke's - Roosevelt Hospital Center):
4.75%, 2/15/2002 (Insured; FHA)....................................... 4,000,000 3,803,640
4.75%, 8/15/2002 (Insured; FHA)....................................... 4,000,000 3,793,560
New York State Mortgage Agency Revenue, (Homeowner Mortgage):
5.85%, 10/1/1999........................................................ 1,075,000 1,099,564
6.05%, 10/1/2000........................................................ 1,150,000 1,184,569
6.15%, 10/1/2001........................................................ 1,225,000 1,261,235
7.25%, 10/1/2007........................................................ 2,450,000 2,518,110
New York State Power Authority,
General Purpose Revenue:
6.50%, 1/1/2004....................................................... 2,735,000 2,950,819
Refunding:
5.90%, 1/1/2002................................................... 3,625,000 3,802,988
6.25%, 1/1/2004................................................... 2,000,000 2,153,680
5%, 1/1/2007...................................................... 4,000,000 3,761,000
New York State Project Finance Agency:
4.75%, 11/1/2004 (Insured; FSA)......................................... 3,000,000 2,782,740
5%, 11/1/2007 (Insured; FSA)............................................ 2,650,000 2,417,118
New York State Thruway Authority:
(Emergency Highway Reconditioning and Preservation)
6%, 1/1/2002.......................................................... 2,000,000 2,108,060
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------- -------------
NEW YORK (CONTINUED)
New York State Thruway Authority (continued):
Service Contract Revenue (Local Highway and Bridge):
6.80%, 1/1/2000....................................................... $ 2,420,000 $ 2,590,949
7%, 1/1/2002.......................................................... 5,000,000 5,448,000
New York State Urban Development Corp.:
Project Revenue (Cornell Center for Theory and Simulation Science and
Engineering Grant) 5.90%, 1/1/2007.................................... 2,735,000 2,659,487
Revenue, Refunding (Correctional Facilities):
5.40%, 1/1/2006....................................................... 5,000,000 4,749,300
5.625%, 1/1/2007...................................................... 9,835,000 9,330,465
Niagara Falls:
5.70%, 6/15/2000........................................................ 1,000,000 1,017,210
5.85%, 6/15/2001........................................................ 1,475,000 1,507,317
6%, 6/15/2002........................................................... 1,250,000 1,283,913
Oneida-Herkimer Solid Waste Management Authority, Solid Waste System Revenue
6.60%, 4/1/2004......................................................... 1,150,000 1,205,465
Onondaga County Industrial Development Agency, PCR, Refunding
(Anheuser-Busch Co. Inc. Project) 6.625%, 8/1/2006...................... 4,000,000 4,185,080
Oswego County 6.60%, 6/15/2004.............................................. 1,000,000 1,079,150
Port Authority of New York and New Jersey:
(Consolidated Bonds 79th Series) 5.80%, 7/15/2003....................... 4,620,000 4,842,915
(Consolidated Bonds 73rd Series) 6.75%, 10/15/2006...................... 2,000,000 2,119,740
Rensselaer Industrial Development Agency, IDR (Albany International Corp.)
7.55%, 6/1/2007 (LOC; Norstar Bank) (b)................................. 2,000,000 2,203,920
Suffolk County Industrial Development Agency, IDR (Metavac Inc. Facilities)
7.25%, 12/1/1999 (LOC; Bank of Tokyo) (b)............................... 2,060,000 2,143,821
Suffolk County Water Authority, Waterworks Revenue Refunding
5.10%, 6/1/2004 (Insured; MBIA)......................................... 4,500,000 4,403,520
Syracuse:
COP:
(Syracuse Hancock International Airport):
6.50%, 1/1/2004................................................... 1,045,000 1,109,968
6.60%, 1/1/2005................................................... 1,105,000 1,154,349
6.70%, 1/1/2007................................................... 1,210,000 1,266,483
Public Improvement:
Refunding 4.80%, 2/15/2004............................................ 2,500,000 2,387,625
5.70%, 6/15/2004...................................................... 1,850,000 1,915,730
5.70%, 6/15/2005...................................................... 1,830,000 1,882,064
Triborough Bridge and Tunnel Authority:
(Convention Center Project) 7.25%, 1/1/1999............................. 2,750,000 2,952,070
General Purpose Revenue:
6.80%, 1/1/2002....................................................... 2,815,000 3,075,556
5.625%, 1/1/2004...................................................... 3,100,000 3,165,441
6%, 1/1/2006.......................................................... 3,250,000 3,309,150
Revenue;
6.70%, 1/1/2003....................................................... 3,000,000 3,320,910
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------- -------------
NEW YORK (CONTINUED)
Ulster County Resource Recovery Agency, Solid Waste System Revenue 5.90%, 3/1/2007 $ 1,235,000 $ 1,192,133
Westchester County Industrial Development Agency, RRR, Refunding
(Resco Company Project) 5.50%, 7/1/2006 ................................ 2,850,000 2,877,417
U.S. RELATED--14.8%
Guam:
4.35%, 11/15/1998....................................................... 2,665,000 2,578,841
5.10%, 11/15/2006....................................................... 4,000,000 3,680,000
Guam Airport Authority, Revenue 6.40%, 10/1/2005............................ 4,000,000 4,129,120
Puerto Rico, Public Improvement Refunding 5.20%, 7/1/2003................... 3,600,000 3,540,996
Puerto Rico Electric Power Authority, Power Revenue 6%, 7/1/2002............ 2,500,000 2,595,875
Puerto Rico Housing Bank and Finance Agency, Subsidy Prepayment Refunding
(Commonwealth Appropriation) 5.125%, 12/1/2004.......................... 5,000,000 4,695,000
Puerto Rico Highway and Transportation Authority, Highway Revenue Refunding:
4.80%, 7/1/2000......................................................... 4,200,000 4,110,708
6.60%, 7/1/2005 (c)..................................................... 5,000,000 4,556,250
Puerto Rico Municipal Finance Agency:
5.70%, 7/1/2003......................................................... 7,810,000 7,941,755
5.80%, 7/1/2004......................................................... 1,875,000 1,908,600
5.875%, 7/1/2007........................................................ 2,670,000 2,670,721
Virgin Islands, Subordinated Special Tax
(Insurance Claims Fund Program, GO Matching Fund) 5.65%, 10/1/2003...... 6,000,000 5,969,820
Virgin Islands Port Authority, Airport Revenue (Cyril E. King Airport
Project):
7.875%, 10/1/1997....................................................... 1,895,000 1,995,340
8.10%, 10/1/2005........................................................ 1,175,000 1,305,308
Virgin Islands Public Finance Authority, Revenue, Refunding
Matching Fund Loan Notes:
6.80%, 10/1/2000...................................................... 1,500,000 1,526,670
6.90%, 10/1/2001...................................................... 1,000,000 1,018,570
Virgin Islands Water and Power Authority, Electric System Revenue
6.90%, 7/1/1996......................................................... 2,595,000 2,716,031
-------------
TOTAL MUNICIPAL BONDS
(cost $375,675,487)..................................................... $382,153,443
=============
SHORT-TERM MUNICIPAL INVESTMENT--.7%
NEW YORK;
New York City, VRDN 2.95%
(cost $2,600,000)(d).................................................... $ 2,600,000 $ 2,600,000
=============
TOTAL INVESTMENTS--100.0%
(cost $378,275,487)..................................................... $384,753,443
=============
</TABLE>
<TABLE>
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
COP Certificate of Participation LR Lease Revenue
FGIC Financial Guaranty Insurance Corporation MBIA Municipal Bond Insurance Association
FHA Federal Housing Administration MFHR Multi-Family Housing Revenue
FSA Financial Security Assurance PCR Pollution Control Revenue
GO General Obligation RRR Resources Recovery Revenue
IDR Industrial Development Revenue VDRN Variable Rate Demand Notes
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- --------------------- ----------------------
<S> <C> <C> <C>
AAA Aaa AAA 15.7%
AA Aa AA 18.2
A A A 29.0
BBB Baa BBB 32.3
F1 MIG1/P1 SP1/A1 .7
Not Rated Not Rated Not Rated 4.1
--------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) The interest rate, which is subject to change, is based upon bank
prime rates or an index of market interest rates.
(b) Secured by letters of credit.
(c) Residual interest security- the interest rate is subject to change
periodically.
(d) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) At May 31, 1994, the Fund had $102,317,828 (26.1%) of net assets
invested in securities whose payment of principal and interest is
dependent upon revenues generated from transportation projects.
See notes to financial statements.
<TABLE>
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $378,275,487)_see statement..................................... $384,753,443
Cash.................................................................... 341,986
Interest receivable..................................................... 7,439,729
Prepaid expenses........................................................ 14,686
-------------
392,549,844
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 281,311
Accrued expenses........................................................ 125,467 406,778
----------- -------------
NET ASSETS ................................................................ $392,143,066
=============
REPRESENTED BY:
Paid-in capital......................................................... $386,536,154
Accumulated net realized (loss) on investments.......................... (871,044)
Accumulated net unrealized appreciation on investments-Note 3........... 6,477,956
-------------
NET ASSETS at value applicable to 22,146,288 shares outstanding
(unlimited number of $.001 par value shares of Beneficial
Interest authorized).................................................... $392,143,066
=============
NET ASSET VALUE, offering and redemption price per share
($392,143,066 / 22,146,288 shares)...................................... $17.71
======
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS YEAR ENDED MAY 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 22,271,250
EXPENSES:
Management fee_-Note 2(a)............................................. $ 2,342,046
Shareholder servicing costs_Note 2(b)................................. 1,236,808
Professional fees..................................................... 53,641
Custodian fees........................................................ 41,898
Prospectus and shareholders' reports_Note 2(b)........................ 34,106
Registration fees..................................................... 29,327
Trustees' fees and expenses_Note 2(c)................................. 16,735
Miscellaneous......................................................... 33,647
-----------
3,788,208
Less--reduction in management fee due to undertakings_Note 2(a)....... 303,115
-----------
TOTAL EXPENSES.................................................... 3,485,093
-------------
INVESTMENT INCOME--NET............................................ 18,786,157
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments--Note 3.............................. $ (869,593)
Net unrealized (depreciation) on investments............................ (9,167,410)
-----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (10,037,003)
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 8,749,154
=============
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MAY 31,
---------------------------------
1993 1994
------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 12,327,721 $ 18,786,157
Net realized gain (loss) on investments.............................. 1,562,756 (869,593)
Net unrealized appreciation (depreciation) on investments for the year 9,793,046 (9,167,410)
------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 23,683,523 8,749,154
------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net............................................... (12,249,380) (18,916,493)
Net realized gain on investments..................................... (1,361,992) (703,348)
------------- --------------
TOTAL DIVIDENDS.................................................... (13,611,372) (19,619,841)
------------- --------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................ 221,713,611 283,126,747
Dividends reinvested................................................. 11,520,173 16,448,017
Cost of shares redeemed.............................................. (99,002,497) (214,699,800)
------------- --------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS....... 134,231,287 84,874,964
------------- --------------
TOTAL INCREASE IN NET ASSETS................................... 144,303,438 74,004,277
NET ASSETS:
Beginning of year.................................................... 173,835,351 318,138,789
------------- --------------
End of year (including undistributed investment income-net of
$130,336 at May 31, 1993).......................................... $318,138,789 $ 392,143,066
============= ==============
SHARES SHARES
------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 12,439,795 15,416,722
Shares issued for dividends reinvested............................... 648,502 898,331
Shares redeemed...................................................... (5,562,573) (11,789,202)
------------- --------------
NET INCREASE IN SHARES OUTSTANDING................................. 7,525,724 4,525,851
============= ==============
See notes to financial statements.
</TABLE>
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
FINANCIAL HIGHLIGHTS
Reference is made to Page 2 of the Prospectus dated July 25, 1994.
See notes to financial statements.
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Dreyfus Service
Corporation ("Distributor") acts as the distributor of the Fund's shares,
which are sold to the public without a sales load. The Distributor is a
wholly-owned subsidiary of The Dreyfus Corporation ("Manager").
(A) PORTFOLIO VALUATION: The Fund's investments are valued each business
day by an independent pricing service ("Service") approved by the Board of
Trustees. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the
Service are valued at the mean between the quoted bid prices (as obtained by
the Service from dealers in such securities) and asked prices (as calculated
by the Service based upon its evaluation of the market for such securities).
Other investments (which constitute a majority of the portfolio securities)
are carried at fair value as determined by the Service, based on methods
which include consideration of: yields or prices of municipal securities of
comparable quality, coupon, maturity and type; indications as to values from
dealers; and general market conditions.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and, when appropriate,
discounts on investments, is earned from settlement date and recognized on
the accrual basis. Securities purchased or sold on a when-issued or
delayed-delivery basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income taxes.
The Fund has an unused capital loss carryover of approximately $40,000
available for Federal income tax purposes to be applied against future net
securities profits, if any realized subsequent to May 31,1994. The carryover
does not include net realized securities losses from November 1, 1993 through
May 31, 1994 which are treated, for Federal income tax purposes, as arising
in fiscal 1995. If not applied, the carryover expires in fiscal 2002.
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .60 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Fund's aggregate expenses, exclusive of taxes, brokerage, interest on
borrowings and extraordinary expenses, exceed 11/2% of the average value of
the Fund's net assets for any full fiscal year. However, the Manager had
undertaken from June 1, 1993 through January 11, 1994 to reduce the
management fee paid, or reimburse such excess expenses of the Fund, to the
extent that the Fund's aggregate expenses (excluding certain expenses as
described above) exceeded an annual rate of .85 of 1% of the Fund's average
daily net assets and thereafter had undertaken through January 24, 1994 to
reduce the management fee paid by, and reimburse such excess expenses of the
Fund, to the extent that the Fund's aggregate expenses (excluding certain
expenses as described above) exceeded specified annual percentages of the
Fund's average daily net assets. The reduction in management fee, pursuant to
the undertakings, amounted to $303,115 for the year ended May 31, 1994.
(B) The Fund has adopted a Service Plan (the "Plan") pursuant to which
the Fund pays the Distributor, at an annual rate of .25 of 1% of the value of
the Fund's average daily net assets, for costs and expenses in connection
with advertising, marketing and distributing the Fund's shares and for
servicing shareholder accounts. The Distributor may make payments to one or
more Service Agents (a securities dealer, financial institution, or other
industry professional) based on the value of the Fund's shares owned by
clients of the Service Agent. The Plan also separately provides for the Fund
to bear the costs of preparing, printing and distributing certain of the
Fund's prospectuses and statements of additional information and costs
associated with implementing and operating the Plan, not to exceed the
greater of $100,000 or .005 of 1% of the Fund's average daily net assets for
any full fiscal year. During the year ended May 31, 1994, $983,382 was
chargeable to the Fund pursuant to the Plan.
(C) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each trustee
who is not an "affiliated person" receives an annual fee of $2,500 and an
attendance fee of $250 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and Plan
of Merger (the "Merger Agreement") providing for the merger of the Manager
with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number
of contingencies, including receipt of certain regulatory approvals and
approvals of stockholders of the Manager and of Mellon. The merger is
expected to occur in August 1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's
shareholders before completion of the merger. Proxy materials, approved by
the Fund's Board, recently have been mailed to Fund shareholders.
NOTE 3--SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $288,735,590 and
$216,056,445, respectively, for the year ended May 31, 1994, and consisted
entirely of municipal bonds and short-term municipal investments.
At May 31, 1994, accumulated net unrealized appreciation on investments
was $6,477,956, consisting of $12,478,929 gross unrealized appreciation and
$6,000,973 gross unrealized depreciation.
At May 31, 1994, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
We have audited the accompanying statement of assets and liabilities of
Dreyfus New York Tax Exempt Intermediate Bond Fund, including the statement
of investments, as of May 31, 1994, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended, and financial highlights for each of
the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of May 31, 1994 by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus New York Tax Exempt Intermediate Bond Fund at May 31,
1994, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
(Ernst & Young Signature Logo)
New York, New York
June 27, 1994
<TABLE>
<CAPTION>
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS MAY 31,1994
PRINCIPAL
MUNICIPAL BONDS--94.1% AMOUNT VALUE
---------------- -------------
<S> <C> <C>
NEW YORK--83.7%
Allegany County Industrial Development Agency, Solid Waste Disposal Facility
Revenue
(Atlantic Richfield Co. Facility) 6.625%, 9/1/2016...................... $ 3,000,000 $ 3,090,690
Battery Park City Authority, Senior Revenue Refunding 5.25%, 11/1/2017...... 16,650,000 14,671,147
Cohoes Industrial Development Agency, IDR (Norlite Corp. Project)
6.75%, 5/1/2009(LOC; Dresdner Bank) (a)................................. 5,000,000 5,111,900
Housing Corp., Revenue:
9%, 11/1/2017........................................................... 13,250,000 15,313,555
Refunding 5%, 11/1/2013................................................. 6,500,000 5,554,055
Metropolitan Transportation Authority:
Service Contract:
Commuter Facilities 5.75%, 7/1/2013................................... 8,825,000 8,339,360
Transit Facilities:
7.125%, 7/1/2009.................................................. 5,000,000 5,367,750
5.75%, 7/1/2013................................................... 3,900,000 3,685,383
Transit Facilities Revenue 7.304%, 7/1/2022(b,c)........................ 12,000,000 9,645,000
Monroe County Industrial Development Agency, Revenue
(Genesee Hospital Civic Facility)7%, 11/1/2018.......................... 6,900,000 7,228,647
Municipal Assistance Corp. for the City of New York 7.30%, 7/1/2008......... 6,000,000 6,603,300
Nassau County Industrial Development Agency, IDR
(Hofstra University Project) 8.25%, 7/1/2003............................ 3,000,000 3,388,950
New York City:
7.875%, 8/1/2000........................................................ 3,000,000 3,341,280
6.25%, 8/1/2002 (Insured; FSA).......................................... 3,950,000 4,280,970
7.50%, 2/1/2003......................................................... 3,500,000 3,914,330
7.50%, 2/1/2006......................................................... 10,000,000 11,046,500
8.25%, 6/1/2006......................................................... 2,750,000 3,247,282
6%, 8/1/2006............................................................ 5,000,000 4,907,400
6%, 5/15/2007........................................................... 15,000,000 14,722,200
6.50%, 8/1/2007......................................................... 10,350,000 10,538,680
7.50%, 3/15/2009........................................................ 2,500,000 2,716,150
7.50%, 3/15/2010........................................................ 10,000,000 10,864,600
7%, 10/1/2010........................................................... 3,955,000 4,207,092
6.25%, 8/1/2011 (Insured; FSA).......................................... 1,050,000 1,071,252
6.72%, 8/1/2011(b)...................................................... 18,775,000 16,252,579
5.75%, 8/15/2011........................................................ 11,870,000 11,135,722
7.20%, 2/1/2013......................................................... 30,000,000 32,286,600
5.75%, 8/15/2013........................................................ 8,035,000 7,365,443
6.85%, 10/1/2013........................................................ 5,000,000 5,135,750
7.20%, 2/1/2014......................................................... 10,000,000 10,762,200
7%, 6/1/2015............................................................ 6,100,000 6,490,400
7%, 8/1/2016............................................................ 4,200,000 4,432,428
7.50%, 2/1/2017......................................................... 7,000,000 7,660,240
7%, 2/1/2019............................................................ 2,000,000 2,108,440
7.50%, 8/1/2021......................................................... 5,000,000 5,490,900
New York City Health and Hospital Corp., Revenue:
6%, 2/15/2005........................................................... 8,000,000 7,989,600
5.396%, 2/15/2011(b).................................................... 24,000,000 22,568,880
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31,1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
---------------- -------------
NEW YORK (CONTINUED)
New York City Housing Development Corp., MFHR 5.70%, 11/1/2013.............. $ 5,125,000 $ 4,788,390
New York City Municipal Water Finance Authority, Water and Sewer Systems
Revenue:
6.50%, 6/15/1997 (Insured; AMBAC)....................................... 3,800,000 4,066,646
7%, Ser.A, 6/15/2001.................................................... 2,440,000 2,739,095
7%, 6/15/2001........................................................... 5,655,000 6,348,190
7%, 6/15/2009........................................................... 19,175,000 20,490,980
7%, 6/15/2015........................................................... 8,305,000 8,760,612
6.75%, 6/15/2017........................................................ 29,290,000 30,259,206
7.75%, 6/15/2020........................................................ 11,750,000 13,748,675
6.50%, 6/15/2021 (Insured; AMBAC)....................................... 26,200,000 26,708,542
6.375%, 6/15/2022....................................................... 9,370,000 9,442,149
Refunding 6%, 6/15/2017................................................. 44,000,000 42,821,680
State of New York:
5.50%, 3/1/2010......................................................... 5,265,000 5,014,070
COP:
Commissioner General Services of the Executive Department 6.90%, 3/1/1998 2,030,000 2,211,320
Commissioner Office of Mental Health 8.30%, 9/1/2012.................. 4,000,000 4,399,640
Refunding 6.125%, 11/15/2011............................................ 11,630,000 11,759,209
New York State Dormitory Authority, Revenues:
(City University Systems):
8.125%, 7/1/1997...................................................... 2,950,000 3,295,946
7.875%, 7/1/2007...................................................... 5,000,000 5,802,550
8.125%, 7/1/2007...................................................... 10,000,000 11,015,700
6.375%, 7/1/2008...................................................... 5,625,000 5,717,194
7%, 7/1/2009.......................................................... 8,500,000 9,250,125
5.60%, 7/1/2010....................................................... 12,000,000 11,479,080
7.50%, 7/1/2010 (Insured; FGIC)....................................... 5,000,000 5,811,900
5.50%, 7/1/2012....................................................... 30,025,000 27,287,020
5.75%, 7/1/2013....................................................... 10,000,000 9,428,600
10.875%, 7/1/2014..................................................... 24,500,000 25,124,750
5%, 7/1/2020.......................................................... 10,000,000 8,161,800
Refunding:
5.75%, 7/1/2012................................................... 2,500,000 2,364,000
8.20%, 7/1/2012................................................... 5,250,000 5,959,065
(Cornell University) 7.375%, 7/1/2030................................... 11,785,000 12,909,760
Court Facilities Lease:
5.50%, 5/15/2010...................................................... 15,000,000 13,869,000
5.50%, 5/15/2023...................................................... 13,170,000 11,507,156
Department Health, Refunding 5.50%, 7/1/2014............................ 10,000,000 9,024,900
Judicial Facilities Lease (Suffolk County Issue) 9.50%, 4/15/2014....... 4,500,000 5,266,485
(New York Medical College) 6.875%, 7/1/2021 (Insured; Asset Guaranty)... 19,310,000 20,200,963
(Park Ridge Housing Inc. Project) 7.85%, 2/1/2029....................... 7,720,000 8,494,470
(Rochester General Hospital) 8.75%, 2/1/2025 (Insured; FHA)............. 4,645,000 4,989,241
(Rochester Institute of Technology) 9.375%, 7/1/2003 (Collateralized; GNMA) 6,010,000 6,529,925
(State University):
7.60%, 7/1/2018....................................................... 3,000,000 3,241,410
Educational Facilities:
7%, 5/15/2000..................................................... 7,010,000 7,859,963
7.375%, 5/15/2000................................................. 10,155,000 11,601,174
7.25%, 5/15/2002.................................................. 16,065,000 18,378,360
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31,1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
---------------- -------------
NEW YORK (CONTINUED)
New York State Dormitory Authority, Revenues (continued):
(State University) (continued):
Educational Facilities (continued):
5.50%, 5/15/2008.................................................. $ 12,150,000 $ 11,546,388
7.25%, 5/15/2008.................................................. 11,590,000 13,080,590
5.875%, 5/15/2011................................................. 15,000,000 14,514,300
7.50%, 5/15/2011.................................................. 3,750,000 4,274,250
5.50%, 5/15/2013.................................................. 6,330,000 5,802,648
7%, 5/15/2018..................................................... 9,050,000 10,146,769
7.25%, 5/15/2018.................................................. 2,055,000 2,350,920
Refunding:
7.375%, 5/15/2014................................................. 12,945,000 13,984,354
7%, 5/15/2016 .................................................... 17,240,000 18,144,238
New York State Energy Research and Development Authority:
Electric Facilities Revenue:
(Consolidated Edison Co. Project):
7.375%, 7/1/2024.................................................. 7,000,000 7,395,850
7.50%, 7/1/2025................................................... 8,000,000 8,552,400
6.75%, 1/15/2027.................................................. 8,015,000 8,192,532
(Long Island Lighting Co. Project):
7.15%, 6/1/2020................................................... 15,000,000 14,964,600
6.90%, 8/1/2022................................................... 11,975,000 11,654,429
Facilities Revenue (Consolidated Edison Co. Project):
6.375%, 12/1/2027..................................................... 23,715,000 23,698,637
8.089%, 3/15/2028 (b,c)............................................... 16,300,000 13,773,500
Gas Facilities Revenue (Brooklyn Union Gas Co. Project) 8.75%, 7/1/2015. 19,750,000 21,083,718
PCR (Orange and Rockland Utilities, Inc. Project) 9%, 8/1/2015.......... 2,000,000 2,147,760
New York State Environmental Facilities Corp.:
Riverbank State Park Special Obligation 7.375%, 4/1/2022................ 5,500,000 5,971,845
State Water Pollution Control Revolving Fund Revenue
(New York City Municipal Water Finance Authority Project):
6.875%, 6/15/2010................................................. 21,340,000 22,673,323
7.25%, 6/15/2010.................................................. 16,065,000 17,463,780
7.50%, 3/15/2011.................................................. 1,000,000 1,089,220
7%, 6/15/2012..................................................... 21,660,000 23,153,457
7.50%, 6/15/2012.................................................. 20,700,000 22,819,473
6.50%, 6/15/2014.................................................. 16,680,000 17,278,312
New York State Housing Finance Agency, Revenue:
(Adult Care) 7.85%, 2/15/2030 (Insured; FHA)............................ 2,060,000 2,295,479
Insured Multi-Family Mortgage:
6.95%, 8/15/2012...................................................... 1,300,000 1,362,738
7%, 8/15/2022......................................................... 4,495,000 4,616,275
Multi-Family Housing Second Mortgage 6.95%, 8/15/2024................... 3,000,000 3,065,490
Service Contract Obligation:
5.875%, 3/15/2011..................................................... 7,945,000 7,765,364
7.375%, 9/15/2021..................................................... 6,500,000 7,495,995
Refunding 5.375%, 9/15/2011........................................... 7,395,000 6,684,266
New York State Local Government Assistance Corp.:
7%, 4/1/2005............................................................ 4,300,000 4,670,832
7%, 4/1/2011............................................................ 2,500,000 2,637,775
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31,1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
---------------- -------------
NEW YORK (CONTINUED)
New York State Local Government Assistance Corp. (continued):
Refunding:
5.625%, 4/1/2013...................................................... $ 10,970,000 $ 10,262,106
6%, 4/1/2014.......................................................... 5,125,000 5,083,436
New York State Medical Care Facilities Finance Agency, Revenue:
Hospital and Nursing Home Insured Mortgage:
6.45%, 2/15/2009 (Insured; FHA)....................................... 6,705,000 6,860,221
6.35%, 2/15/2012 (Insured; FHA)....................................... 15,000,000 15,260,400
6.85%, 2/15/2012 (Insured; FHA)....................................... 6,000,000 6,457,260
6.25%, 8/15/2012 (Insured; FHA)....................................... 5,425,000 5,460,859
6.125%, 2/15/2014 (Insured; FHA)...................................... 8,200,000 8,059,698
6.30%, 8/15/2023 (Insured; FHA)....................................... 6,500,000 6,430,710
7.45%, 8/15/2031 (Insured; FHA)....................................... 4,250,000 4,593,655
6.875%, 2/15/2032 (Insured; FHA)...................................... 5,000,000 5,224,200
Hospital and Nursing Home Mortgage (Saint Vincent's Hospital)
8%, 2/15/2027 (Insured; FHA).......................................... 2,500,000 2,760,425
Insured Hospital Mortgage:
10.125%, 1/15/2024 (Insured; FHA)..................................... 5,000,000 5,150,750
(Catholic Medical Center) 8.30%, 2/15/2022 (Insured; FHA)............. 14,000,000 15,929,900
(Hospital and Nursing Home Project) 10%, 11/1/2006.................... 4,585,000 4,838,963
(Kingston Hospital) 8.875%, 11/15/2017................................ 7,160,000 7,719,053
Insured Long Term Health Care 6.45%, 11/1/2010 (Insured; FHA)........... 11,660,000 12,217,698
Mental Health Services 5.375%, 8/15/2013................................ 10,000,000 8,789,800
Mental Health Services Facilities Improvement:
5.375%, 2/15/2014..................................................... 16,000,000 14,199,520
5.25%, 2/15/2019...................................................... 6,990,000 5,931,085
Mortgage
(Saint Luke's Hospital) 7.45%, 2/15/2029 (Insured; FHA)............... 10,000,000 11,325,200
New York State Mortgage Agency, Revenue Mortgage:
Homeowner:
7.375%, 10/1/2011..................................................... 13,260,000 13,709,249
6%, 10/1/2017......................................................... 8,945,000 8,523,869
5.50%, 4/1/2019....................................................... 5,000,000 4,672,750
6.45%, 10/1/2020...................................................... 19,115,000 19,334,631
6.65%, 4/1/2022....................................................... 10,000,000 10,070,400
Homeownership:
7.50%, 10/1/2017...................................................... 7,500,000 7,982,775
7.85%, 4/1/2022....................................................... 5,000,000 5,183,750
New York State Power Authority, General Purpose:
6.625%, 1/1/2012........................................................ 5,690,000 5,958,625
6.75%, 1/1/2018......................................................... 11,270,000 11,733,986
6.50%, 1/1/2019......................................................... 15,500,000 15,831,080
New York State Township Authority, Service Contract Revenue
(Local Highway and Bridge):
7.25%, 1/1/2010....................................................... 13,000,000 13,976,300
6%, 4/1/2010.......................................................... 5,980,000 5,904,413
New York State Urban Development Corp., Revenue:
7.50%, 4/1/2020......................................................... 11,645,000 12,704,462
(Cornell Center Project) 6%, 1/1/2014................................... 4,500,000 4,316,085
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31,1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
---------------- -------------
NEW YORK (CONTINUED)
New York State Urban Development Corp., Revenue (continued):
(Correctional Facilities):
5.625%, 1/1/2007...................................................... $ 12,100,000 $ 11,479,270
5.75%, 1/1/2013....................................................... 23,830,000 22,266,514
Onondaga County Industrial Development Agency, IDR
(Weyerhaeuser Project) 9%, 10/1/2007.................................... 1,000,000 1,245,580
Port Authority of New York and New Jersey:
(Consolidated Bond 53rd Series) 8.70%, 7/15/2020........................ 15,500,000 16,622,355
(Consolidated Bond 76th Series) 6.50%, 11/1/2026........................ 14,005,000 14,230,481
Triborough Bridge and Tunnel Authority:
Capital Appreciation General Purpose:
Zero Coupon, 1/1/2012................................................. 3,835,000 1,295,118
Zero Coupon, 1/1/2013................................................. 3,925,000 1,248,425
(Convention Center Project) 7.25%, 1/1/2010............................. 17,500,000 19,509,350
Revenues:
7.375%, 1/1/2016...................................................... 8,280,000 9,356,069
General Purpose:
6%, 1/1/2012...................................................... 7,400,000 7,415,466
5%, 1/1/2014...................................................... 10,750,000 9,475,588
6%, 1/1/2014...................................................... 6,375,000 6,295,121
6.50%, 1/1/2015................................................... 8,525,000 9,188,160
4.75%, 1/1/2019................................................... 27,140,000 22,001,312
6.50%, 1/1/2019................................................... 18,545,000 18,914,231
5%, 1/1/2024...................................................... 5,375,000 4,473,774
Special Obligation Refunding 7.10%, 1/1/2010............................ 8,000,000 8,662,480
U.S. RELATED--10.4%
Commonwealth of Puerto Rico:
Public Improvement:
7.70%, 7/1/2008....................................................... 3,000,000 3,421,530
5.85%, 7/1/2011....................................................... 6,980,000 6,791,610
5.50%, 7/1/2013....................................................... 11,490,000 10,576,660
6.45%, 7/1/2017....................................................... 10,800,000 10,986,192
7.75%, 7/1/2017....................................................... 4,850,000 5,542,386
6.80%, 7/1/2021....................................................... 23,140,000 25,904,304
Guam Airport Authority, Revenue:
6.60%, 10/1/2010........................................................ 4,000,000 4,095,160
6.70%, 10/1/2023........................................................ 12,200,000 12,284,058
Puerto Rico Aqueduct and Sewer Authority, Revenue 10.25%, 7/1/2009.......... 13,750,000 18,821,550
Puerto Rico Electric Power Authority:
Power Revenue 6.375%, 7/1/2024.......................................... 5,000,000 5,027,550
Refunding:
6.10%, 7/1/2003....................................................... 5,000,000 5,204,050
8.375%, 7/1/2007...................................................... 4,950,000 5,596,272
8.40%, 7/1/2015....................................................... 6,700,000 7,579,509
Puerto Rico Highway and Transportation Authority,
Highway Revenue Refunding 6.6002%, 7/1/2005(b).......................... 8,950,000 8,155,688
Puerto Rico Highway Authority, Highway Revenue 8.125%, 7/1/2013............. 6,750,000 7,705,732
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31,1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
---------------- -------------
U.S. RELATED (CONTINUED)
Puerto Rico Housing Finance Corp.:
MFMR:
7.50%, 10/1/2015 (LOC; Government Development Bank Puerto Rico) (a)... $ 6,515,000 $ 6,757,619
7.50%, 4/1/2022 (LOC; Government Development Bank Puerto Rico) (a).... 5,260,000 5,494,649
SFMR 9.535%, 8/4/2025 (b)............................................... 3,000,000 3,000,000
Puerto Rico Public Building Authority, Refunding
Public Education and Health Facilities 5.75%, 7/1/2010.................. 35,355,000 34,254,399
Virigin Islands Public Finance Authority, Revenue Refunding Matching Fund
Loan Note
7.25%, 10/1/2018........................................................ 10,900,000 11,692,757
----------------
TOTAL MUNICIPAL BONDS
(cost $1,741,072,857)................................................... $1,802,045,386
==============
SHORT-TERM MUNICIPAL INVESTMENTS--5.9%
NEW YORK--5.7%
New York City:
ARRN, 2.85% (b)......................................................... $ 12,050,000 $ 12,050,000
VRDN:
2.95% (d)............................................................. 8,400,000 8,400,000
3.05% (d)............................................................. 20,000,000 20,000,000
3.10% (LOC; Industrial Bank of Japan, Ltd.)(a,d)...................... 5,700,000 5,700,000
3.10% (LOC; The Sumitomo Bank, Ltd.)(a,d)............................. 2,100,000 2,100,000
3.20% (LOC; Chemical Bank)(a,d)....................................... 8,850,000 8,850,000
New York City Health and Hospital Corp., Revenue ARRN 2.46% (Insured; AMBAC)(b) 3,600,000 3,600,000
New York City Housing Development Corp., Mortgage Revenue, MFHR, VRDN
2.95% (LOC; Citibank)(a,d).............................................. 7,200,000 7,200,000
New York City Municipal Water Finance Authority,
Water and Sewer System Revenue ARRN 3.25% (b)........................... 3,000,000 3,000,000
New York State Dormitory Authority, Revenue VRDN (Saint Francis Center at the
Knolls)
3.20% (LOC; Banque Paribas)(a,d)........................................ 11,300,000 11,300,000
New York State Energy Research and Development Authority, ARRN 3.40% (b).... 8,600,000 8,600,000
New York State Housing Finance Agency, Revenue VRDN
(Normandie Connecticut I Project) 2.95% (LOC; Societe Generale)(a,d).... 18,300,000 18,300,000
U.S. RELATED--.2%
Commonwealth of Puerto Rico, ARRN 3.03% (Insured; AMBAC)(b) ................ 1,500,000 1,500,000
Puerto Rico Electric Power Authority, Revenue ARRN 2.94% (Insured; FSA)(b).. 3,100,000 3,100,000
----------------
TOTAL SHORT-TERM INVESTMENTS
(cost $113,700,000)..................................................... $ 113,700,000
==============
TOTAL INVESTMENTS--100.0%
(cost $1,854,772,857).................................................... $1,915,745,386
==============
</TABLE>
<TABLE>
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation IDR Industrial Development Revenue
ARRN Adjustable Rate Receipt Notes LOC Letter of Credit
COP Certificate of Participation MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Corporation MFMR Multi-Family Mortgage Revenue
FHA Federal Housing Administration PCR Pollution Control Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage Association VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH(E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- ----------------------
<S> <C> <C> <C>
AAA Aaa AAA 14.3%
AA Aa AA 28.7
A A A 29.3
BBB Baa BBB 22.8
F1 MIG1 SP1 4.3
Not Rated Not Rated Not Rated .6
--------
100.0%
=========
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Residual interest security - the interest rate is subject to change
periodically.
(c) Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At May 31,
1994, these securities amounted to $23,418,500 or 1.2% of net assets.
(d) The interest rate, which is subject to change, is based upon bank
prime rates or an index of market interest rates.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
See notes to financial statements.
<TABLE>
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $1,854,772,857)-see statement................................... $1,915,745,386
Interest receivable..................................................... 38,063,053
Receivable for investment securities sold............................... 6,969,207
Prepaid expenses........................................................ 95,773
---------------
1,960,873,419
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 987,686
Due to Custodian........................................................ 3,632,336
Payable for investment securities purchased............................. 14,780,676
Accrued expenses........................................................ 239,687 19,640,385
------------- ---------------
NET ASSETS.................................................................. $1,941,233,034
==============
REPRESENTED BY:
Paid-in capital......................................................... $1,870,060,645
Accumulated undistributed net realized gain on investments.............. 10,199,860
Accumulated net unrealized appreciation on investments_Note 3........... 60,972,529
---------------
NET ASSETS at value applicable to 128,912,347 shares outstanding
(300 million shares of $.01 par value Common Stock authorized).......... $1,941,233,034
==============
NET ASSET VALUE, offering and redemption price per share
($1,941,233,034 / 128,912,347 shares)................................... $15.06
======
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS YEAR ENDED MAY 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 129,450,292
EXPENSES:
Management fee--Note 2(a)............................................. $ 12,540,757
Shareholder servicing costs--Note 2(b)................................ 1,809,006
Custodian fees........................................................ 136,918
Professional fees..................................................... 93,473
Prospectus and shareholders' reports.................................. 45,660
Directors' fees and expenses_Note 2(c)................................ 30,759
Registration fees..................................................... 24,448
Miscellaneous......................................................... 102,757
-------------
TOTAL EXPENSES.................................................... 14,783,778
---------------
INVESTMENT INCOME--NET............................................ 114,666,514
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments--Note 3................................ $ 26,918,597
Net unrealized (depreciation) on investments............................ (107,463,939)
-------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (80,545,342)
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 34,121,172
==============
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MAY 31,
--------------------------------
1993 1994
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net.................................................. $ 120,365,011 $ 114,666,514
Net realized gain on investments........................................ 73,289,223 26,918,597
Net unrealized appreciation (depreciation) on investments............... 47,728,817 (107,463,939)
---------------- ---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 241,383,051 34,121,172
---------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net.................................................. (120,073,025) (115,624,687)
Net realized gain on investments........................................ (28,272,823) (49,331,298)
---------------- ---------------
TOTAL DIVIDENDS....................................................... (148,345,848) (164,955,985)
---------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 945,524,694 944,177,818
Dividends reinvested.................................................... 110,444,189 124,301,866
Cost of shares redeemed................................................. (948,741,406) (1,094,664,996)
---------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS..... 107,227,477 (26,185,312)
---------------- ---------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... 200,264,680 (157,020,125)
NET ASSETS:
Beginning of year....................................................... 1,897,988,479 2,098,253,159
---------------- ---------------
End of year (including undistributed investment income--net;
$958,173 in 1993)..................................................... $2,098,253,159 $1,941,233,034
============== ==============
SHARES SHARES
---------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 60,164,762 59,571,940
Shares issued for dividends reinvested.................................. 7,045,202 7,764,706
Share redeemed.......................................................... (60,179,400) (69,044,234)
---------------- ---------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... 7,030,564 (1,707,588)
============== ==============
See notes to financial statements.
</TABLE>
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Reference is made to Page 2 of the Prospectus dated July 25, 1994.
See notes to financial statements.
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Dreyfus Service
Corporation ("Distributor") acts as the exclusive distributor of the Fund's
shares, which are sold to the public without a sales charge. The Distributor
is a wholly-owned subsidiary of The Dreyfus Corporation ("Manager").
(A) PORTFOLIO VALUATION: The Fund's investments are valued each business
day by an independent pricing service ("Service") approved by the Board of
Directors. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the
Service are valued at the mean between the quoted bid prices (as obtained by
the Service from dealers in such securities) and asked prices (as calculated
by the Service based upon its evaluation of the market for such securities).
Other investments (which constitute a majority of the portfolio securities)
are carried at fair value as determined by the Service, based on methods
which include consideration of: yields or prices of municipal securities of
comparable quality, coupon, maturity and type; indications as to values from
dealers; and general market conditions.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and, when appropriate,
discounts on investments, is earned from settlement date and recognized on
the accrual basis. Securities purchased or sold on a when-issued or
delayed-delivery basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income taxes.
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .60 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, interest on borrowings, brokerage
commissions and extraordinary expenses, exceed 11/2% of the average value of
the Fund's net assets for any full fiscal year. There was no expense
reimbursement for the year ended May 31, 1994.
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
the Distributor an amount not to exceed an annual rate of .25 of 1% of the
value of the Fund's average daily net assets for servicing shareholder
accounts. The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding the
Fund and providing reports and other information, and services related to the
maintenance of shareholder accounts. During the year ended May 31, 1994, the
Fund was charged an aggregate of $774,417 pursuant to the Shareholder
Services Plan.
(C) Certain officers and directors of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each director
who is not an "affiliated person" receives an annual fee of $4,500 and an
attendance fee of $500 per meeting.
(D) On December 5, 1993, the Manager entered into an agreement and Plan
of Merger (the "Merger Agreement") providing for the merger of the Manager
with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number
of contingencies, including receipt of certain regulatory approvals and
approvals of the stockholders of the Manager and of Mellon. The merger is
expected to occur in August 1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's
shareholders before completion of the merger. Proxy materials, approved by
the Fund's Board, recently have been mailed to Fund shareholders.
NOTE 3--SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $1,907,022,148 and
$1,988,479,531, respectively, for the year ended May 31, 1994, and consisted
entirely of municipal bonds and short-term municipal investments.
At May 31, 1994, accumulated net unrealized appreciation on investments
was $60,972,529, consisting of $93,171,786 gross unrealized appreciation and
$32,199,257 gross unrealized depreciation.
At May 31, 1994, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus New York Tax Exempt Bond Fund, Inc., including the statement of
investments, as of May 31, 1994, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and financial highlights for each of the
years indicated therein. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of May 31, 1994 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus New York Tax Exempt Bond Fund, Inc. at May 31, 1994, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
New York, New York
July 5, 1994
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
PART C. OTHER INFORMATION
_________________________
Item 24. Financial Statements and Exhibits. - List
_______ _________________________________________
(a) Financial Statements:
Included in Part A of the Registration Statement:
Condensed Financial Information
For the period June 12, 1987 (commencement of operations) to
May 31, 1988 and for each of the six years in the period
ended May 31, 1994.
Included in Part B of the Registration Statement for the
Fund:
Statement of Investments--as of May 31, 1994.
Statement of Assets and Liabilities--as of May 31,
1994.
Statement of Operations--year ended May 31, 1994.
Statement of Changes in Net Assets--for the years
ended May 31, 1994 and 1993.
Notes to Financial Statements.
Report of Ernst & Young, Independent Auditors,
dated June 27, 1994.
Schedules No. I through VII and other financial statement information, for
which provision is made in the applicable accounting regulations of the
Securities and Exchange Commission, are either omitted because they are not
required under the related instructions, they are inapplicable, or the
required information is presented in the financial statements or notes
thereto which are included in Part B of the Registration Statement.
Item 24. Financial Statements and Exhibits. - List (continued)
_______ _____________________________________________________
(b) Exhibits:
(1)(a) Registrant's Agreement and Declaration of Trust and
Articles of Amendment.
Incorporated by reference to Exhibit 1 of the Registration
Statement filed under the Securities Act of 1933 on May 13, 1987.
(2) Registrant's By-Laws.
(4) Registrant's Specimen share certificate.
Incorporated by reference to Exhibit 4 of the Registration
Statement filed under the Securities Act of 1933 on May 13, 1987.
(5) Registrant's Management Agreement with The Dreyfus Corporation.
Incorporated by reference to Exhibit 5 of Post-Effective Amendment
No. 6 to the Registration Statement filed under the Securities Act
of 1933 of September 26, 1991.
(6) Registrant's Distribution Agreement with Dreyfus Service
Corporation.
Incorporated by reference to Exhibit 6 to Post-Effective Amendment
No. 6 to the Registration Statement filed under the Securities Act
of 1933 on September 26, 1991.
(8)(a) Registrant's Amended and Restated Custody Agreement with The Bank
of New York.
Incorporated by reference to Exhibit 8(a) of Post-Effective
Amendment No. 4 to the Registration Statement filed under the
Securities Act of 1933 on September 26, 1990.
(b) Registrant's Forms of Sub-Custodian Agreements.
Incorporated by reference to Exhibits 8(b) through 8(e) of Post-
Effective Amendment No. 2 to the Registration Statement filed
under the Securities Act of 1933 on September 28, 1988.
(10) Registrant's Opinion of Counsel of Stroock & Stroock & Lavan.
Incorporated by reference to Exhibit 10 of Pre-Effective Amendment
No. 1 to the Registration Statement filed under the Securities Act
of 1933 on June 1, 1987.
(11) Consent of Ernst & Young, Independent Auditors.
(15) Registrant's Service Plan and Related Documents.
Incorporated by reference to Exhibit 14 of the Registration
Statement filed under the Securities Act of 1933 on May 13, 1987.
(16) Registrant's Schedule of Calculation of Performance Data.
Other Exhibits
Powers of Attorney for David J. Mahoney, Trustee,
incorporated by reference to Post-Effective Amendment No. 6
to the Registration Statement filed under the Securities Act
of 1933 on September 28, 1992. Powers of Attorney for Burton
N. Wallack, Trustee, incorporated by reference to Post-
Effective Amendment No. 6 to the Registration Statement filed
under the Securities Act of 1933 on September 28, 1992. All
other Powers of Attorney are incorporated by reference to the
Fund's Post-Effective Amendment No. 2 to the Registration
Statement filed on September 26, 1988.
Item 25. Persons Controlled by or under Common Control with
Registrants
Not Applicable.
Item 26. Number of Holders of Securities of the Funds.
Number of Record
Title of Class Holders as of July 5, 1994
Shares of beneficial interest 9,940
(par value $.001 per share)
Item 27. Indemnification
Reference is made Article EIGHTH of the Agreement and Declaration
of Trust, as amended, for the Fund filed as Exhibit 1 to the
Registration Statement filed under the Securities Act of 1933 on
May 13, 1987. The application of these provisions is limited by
Article 10 of the By-Laws of the Fund which were filed as Exhibit 2
to the Registration Statement and by the following undertaking set
forth in the rules promulgated by the Securities and Exchange
Commission.
Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may
be permitted to directors, officers and
controlling persons of the Registrant pursuant
to the foregoing provisions, or otherwise, the
Registrant has been advised that in the
opinion of the Securities and Exchange
Commission such indemnification is against
public policy as expressed in such Act and is,
therefore, unenforceable. In the event that a
claim for indemnification against such
liabilities (other than the payment by the
Registrant of expenses incurred or paid by a
director, officer or controlling person of the
Registrant in the successful defense of any
action, suit or proceeding) is asserted by
such director, officer or controlling person
in connection with the securities being
registered, the Registrant will, unless in the
opinion of its counsel the matter has been
settled by controlling precedent, submit to a
court of appropriate jurisdiction the question
whether such indemnification by it is against
public policy as expressed in such Act and
will be governed by the final adjudication of
such issue.
Reference is also made to the Distribution Agreement filed
as described in Item 24(b)(6) above.
Item 28. Business and Other Connections of Each Fund's Investment Adviser
The Dreyfus Corporation ("Dreyfus") and subsidiary companies
comprise a financial service organization whose business
consists primarily of providing investment management services
as the investment adviser, manager and distributor for sponsored
investment companies registered under the Investment Company Act
of 1940 and as an investment adviser to institutional and
individual accounts. Dreyfus also serves as sub-investment
adviser to and/or administrator of other investment companies.
Dreyfus Service Corporation, a wholly-owned subsidiary of
Dreyfus, serves primarily as distributor of shares of investment
companies sponsored by Dreyfus and of other investment companies
for which Dreyfus acts as sub-investment adviser and
administrator. Dreyfus Management, Inc., another wholly-owned
subsidiary, provides investment management services to various
pension plans, institutions and individuals.
Item 28. Business and Other Connections of Investment Adviser (continued)
________ ________________________________________________________________
Officers and Directors of Investment Adviser
____________________________________________
Name and Position
with Dreyfus Other Businesses
_________________ ________________
MANDELL L. BERMAN Real estate consultant and private investor
Director 29100 Northwestern Highway, Suite 370
Southfield, Michigan 48034;
Past Chairman of the Board of Trustees of
Skillman Foundation.
Member of The Board of Vintners Intl.
ALVIN E. FRIEDMAN Senior Adviser to Dillon, Read & Co. Inc.
Director 535 Madison Avenue
New York, New York 10022;
Director and member of the Executive
Committee of Avnet, Inc.**
ABIGAIL Q. McCARTHY Author, lecturer, columnist and educational
Director consultant
2126 Connecticut Avenue
Washington, D.C. 20008
DAVID B. TRUMAN Educational consultant;
Director Past President of the Russell Sage Foundation
230 Park Avenue
New York, New York 10017;
Past President of Mount Holyoke College
South Hadley, Massachusetts 01075;
Former Director:
Student Loan Marketing Association
1055 Thomas Jefferson Street, N.W.
Washington, D.C. 20006;
Former Trustee:
College Retirement Equities Fund
730 Third Avenue
New York, New York 10017
HOWARD STEIN Chairman of the Board, President and Investment
Chairman of the Board and Officer:
Chief Executive Officer Dreyfus Capital Growth Fund (A Premier
Fund)++;
Chairman of the Board and Investment Officer:
The Dreyfus Fund Incorporated++;
Dreyfus New Leaders Fund, Inc.++;
The Dreyfus Socially Responsible Growth
Fund, Inc. ++;
The Dreyfus Third Century Fund, Inc.++;
Chairman of the Board:
Dreyfus Acquisition Corporation*;
Dreyfus America Fund++++;
The Dreyfus Consumer Credit Corporation*;
HOWARD STEIN Dreyfus Land Development Corporation*;
(cont'd) Dreyfus Management, Inc.*;
Dreyfus Service Corporation*;
Chairman of the Board and Chief Executive
Officer:
Major Trading Corporation*;
President, Managing General Partner and
Investment Officer:
Dreyfus Global Growth, L.P. (A Strategic
Fund)++;
Dreyfus Strategic Growth, L.P. ++;
Director, President and Investment Officer:
Dreyfus Appreciation Fund, Inc.++;
Dreyfus Asset Allocation Fund, Inc.++;
Dreyfus Capital Value Fund (A Premier
Fund)++;
Dreyfus Focus Funds, Inc.++;
Dreyfus Global Investing++;
Dreyfus Growth Opportunity Fund, Inc.++;
Premier Growth Fund, Inc.++;
Dreyfus Growth Allocation Fund, Inc.++
Director and Investment Officer:
Dreyfus Growth and Income Fund, Inc.++;
Director:
Avnet, Inc.**;
Comstock Partners Strategy Fund, Inc.***;
Dreyfus A Bonds Plus, Inc.++;
Dreyfus BASIC Money Market Fund, Inc.++;
The Dreyfus Fund International
Limited++++++;
Dreyfus Global Bond Fund, Inc.++;
Dreyfus Insured Municipal Bond Fund,
Inc.++;
Dreyfus Liquid Assets, Inc.++;
Dreyfus Money Market Instruments, Inc.++;
Dreyfus Municipal Bond Fund, Inc.++;
Dreyfus Municipal Money Market Fund,
Inc.++;
Dreyfus New Jersey Municipal Bond Fund,
Inc.++;
Dreyfus Partnership Management,
Inc.*;
Dreyfus Personal Management, Inc.*;
Dreyfus Precious Metals, Inc.*;
Dreyfus Realty Advisors, Inc.+++;
Dreyfus Service Organization, Inc.*;
Dreyfus Strategic Governments Income,
Inc.++;
The Dreyfus Trust Company++;
General Government Securities Money Market
Fund, Inc.++;
General Money Market Fund, Inc.++;
General Municipal Money Market Fund,
Inc.++;
HOWARD STEIN Seven Six Seven Agency, Inc.*;
(cont'd) World Balanced Fund++++;
Trustee and Investment Officer:
Dreyfus Short-Intermediate Government
Fund++;
Dreyfus Strategic Investing++;
Dreyfus Variable Investment Fund++;
Trustee:
Corporate Property Investors
New York, New York;
Dreyfus BASIC U.S. Government Money Market
Fund++;
Dreyfus California Tax Exempt Money Market
Fund++;
Dreyfus Institutional Money Market Fund++;
Dreyfus Institutional Short Term Treasury
Fund++;
Dreyfus Investors GNMA Fund++;
Dreyfus 100% U.S. Treasury Intermediate
Term Fund++;
Dreyfus 100% U.S. Treasury Long Term
Fund++;
Dreyfus 100% U.S. Treasury Money Market
Fund++;
Dreyfus 100% U.S. Treasury Short Term
Fund++;
Dreyfus Strategic Income++
JULIAN M. SMERLING Director and Executive Vice President:
Vice Chairman of the Dreyfus Service Corporation*;
Board of Directors Director and Vice President:
Dreyfus Service Organization, Inc.*;
Vice Chairman and Director:
The Dreyfus Trust Company++;
The Dreyfus Trust Company (N.J.)++;
Director:
The Dreyfus Consumer Credit Corporation*;
Dreyfus Partnership Management, Inc.*;
Seven Six Seven Agency, Inc.*
JOSEPH S. DiMARTINO Director and Chairman of the Board:
President, Chief Operating The Dreyfus Trust Company++;
Officer and Director Director, President and Investment Officer:
Dreyfus Cash Management Plus, Inc.++;
Dreyfus Global Bond Fund, Inc.++;
Dreyfus International Equity Fund, Inc.++;
Dreyfus Liquid Assets, Inc.++;
Dreyfus Money Market Instruments, Inc.++;
Dreyfus Worldwide Dollar Money Market
Fund, Inc.++;
General Government Securities Money Market
Fund, Inc.++;
General Money Market Fund, Inc.++;
Director and President:
Dreyfus Acquisition Corporation*;
The Dreyfus Consumer Credit Corporation*;
JOSEPH S. DiMARTINO Dreyfus Edison Electric Index Fund,
(cont'd) Inc.++;
Dreyfus Life and Annuity Index Fund,
Inc.++;
Dreyfus Partnership Management, Inc.*;
The Dreyfus Trust Company (N.J.)++;
Dreyfus-Wilshire Target Funds, Inc.++;
First Prairie Tax Exempt Bond Fund,
Inc. ++;
Peoples Index Fund, Inc.++;
Peoples S&P MidCap Index Fund, Inc.++;
Trustee, President and Investment Officer:
Dreyfus Cash Management++;
Dreyfus Government Cash Management++;
Dreyfus Institutional Money Market Fund++;
Dreyfus Short-Intermediate Government
Fund++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++;
Dreyfus Variable Investment Fund++;
Premier GNMA Fund++;
Trustee and President:
First Prairie Cash Management++;
First Prairie Diversified Asset Fund++;
First Prairie Money Market Fund++;
First Prairie Municipal Money Market
Fund++;
First Prairie U.S. Government Income
Fund++;
First Prairie U.S. Treasury Securities
Cash Management++;
Trustee, Vice President and Investment Officer:
Dreyfus Institutional Short Term
Treasury Fund++;
Trustee and Investment Officer:
Premier GNMA Fund++;
Director and Executive Vice President:
Dreyfus Service Corporation*;
Director, Vice President and Investment
Officer:
Dreyfus Balanced Fund, Inc.++;
Director and Vice President:
Dreyfus Service Organization, Inc.*;
General Municipal Bond Fund, Inc.++;
General Municipal Money Market Fund,
Inc.++;
Director and Investment Officer:
Dreyfus A Bonds Plus, Inc.++;
Dreyfus Appreciation Fund, Inc.++;
Dreyfus Short-Term Income Fund, Inc.++;
Premier Growth Fund, Inc.++;
Director:
Dreyfus Management, Inc.*;
Dreyfus Personal Management, Inc.*;
Noel Group, Inc.
667 Madison Avenue
New York, New York 10021;
JOSEPH S. DiMARTINO Trustee:
(cont'd) Bucknell University
Lewisburg, Pennsylvania 17837;
President and Investment Officer:
Dreyfus BASIC Money Market Fund, Inc.++;
Dreyfus BASIC U.S. Government Money Market
Fund++;
Vice President and former Treasurer and
Director:
National Muscular Dystrophy Association
810 Seventh Avenue
New York, New York 10019;
Investment Officer:
The Dreyfus Fund Incorporated++;
Dreyfus Investors GNMA Fund++;
Dreyfus 100% U.S. Treasury Intermediate
Term Fund++;
Dreyfus 100% U.S. Treasury Long Term
Fund++;
Dreyfus 100% U.S. Treasury Money Market
Fund++;
Dreyfus 100% U.S. Treasury Short Term
Fund++;
President, Chief Operating Officer and
Director:
Major Trading Corporation*
LAWRENCE M. GREENE Chairman of the Board:
Legal Consultant and The Dreyfus Security Savings
Director Bank, F.S.B.+;
Director and Executive Vice President:
Dreyfus Service Corporation*;
Director and Vice President:
Dreyfus Acquisition Corporation*;
Dreyfus Service Organization, Inc.*;
Director:
Dreyfus America Fund++++;
Dreyfus BASIC Municipal Fund ++;
Dreyfus California Tax Exempt Bond Fund,
Inc.++;
Dreyfus Capital Value Fund (A Premier
Fund)++;
Dreyfus Connecticut Municipal Money Market
Fund, Inc.++;
Dreyfus GNMA Fund, Inc.++;
Dreyfus Intermediate Municipal Bond Fund,
Inc.++;
Dreyfus-Lincoln, Inc.*;
Dreyfus Management, Inc.*;
Dreyfus Michigan Municipal Money Market
Fund, Inc.++;
Dreyfus New Jersey Municipal Money Market
Fund, Inc.++;
LAWRENCE M. GREENE Dreyfus New Leaders Fund, Inc.++;
(cont'd) Dreyfus New York Tax Exempt Bond Fund,
Inc.++;
Dreyfus Ohio Municipal Money Market Fund,
Inc.++;
Dreyfus Precious Metals, Inc.*;
Dreyfus Thrift & Commerce+++;
The Dreyfus Trust Company (N.J.)++;
Seven Six Seven Agency, Inc.*;
Vice President:
Dreyfus Growth Opportunity Fund, Inc.++;
Trustee:
Dreyfus Massachusetts Municipal Money
Market Fund++;
Dreyfus Massachusetts Tax Exempt Bond
Fund++;
Dreyfus New York Tax Exempt Intermediate
Bond Fund++;
Dreyfus New York Tax Exempt Money Market
Fund++;
Dreyfus Pennsylvania Municipal Money
Market Fund++;
Investment Officer:
The Dreyfus Fund Incorporated++
ROBERT F. DUBUSS Director and Treasurer:
Vice President Major Trading Corporation*;
Director and Vice President:
The Dreyfus Consumer Credit Corporation*;
The Truepenny Corporation*;
Treasurer:
Dreyfus Management, Inc.*;
Dreyfus Precious Metals, Inc.*;
Dreyfus Service Corporation*;
Assistant Treasurer:
The Dreyfus Fund Incorporated++;
Director:
The Dreyfus Trust Company++;
The Dreyfus Trust Company (N.J.)++;
Dreyfus Thrift & Commerce****
ALAN M. EISNER Director and President:
Vice President and Chief The Truepenny Corporation*;
Financial Officer Vice President and Chief Financial Officer:
Dreyfus Acquisition Corporation*;
Treasurer:
Dreyfus Realty Advisors, Inc.+++;
Treasurer, Financial Officer and Director:
The Dreyfus Trust Company++;
The Dreyfus Trust Company (N.J.)++;
Director:
Dreyfus Thrift & Commerce****;
Vice President and Director:
The Dreyfus Consumer Credit Corporation*
DAVID W. BURKE Vice President and Director:
Vice President and Chief The Dreyfus Trust Company++;
Administrative Officer Formerly, President:
CBS News, a division of CBS, Inc.
524 West 57th Street
New York, New York 10019
Director:
Dreyfus BASIC Municipal Fund++;
Dreyfus California Tax Exempt Bond
Fund, Inc.++;
Dreyfus Connecticut Municipal Money Market
Fund, Inc.++;
Dreyfus Intermediate Municipal Bond
Fund, Inc.++;
Dreyfus Michigan Municipal Money Market
Fund, Inc.++;
Dreyfus New Jersey Municipal Money Market
Fund, Inc.++;
Dreyfus New York Tax Exempt Bond
Fund, Inc.++;
Dreyfus Ohio Municipal Money Market
Fund, Inc.++;
Trustee:
Dreyfus BASIC U.S. Government Money Market
Fund++;
Dreyfus California Intermediate Municipal
Bond Fund++;
Dreyfus California Tax Exempt Money
Market Fund++;
Dreyfus Cash Management++;
Dreyfus Connecticut Intermediate Municipal
Bond Fund++;
Dreyfus Government Cash Management++;
Dreyfus Institutional Short Term
Treasury Fund++;
Dreyfus Massachusetts Intermediate
Municipal Bond Fund++;
Dreyfus Massachusetts Municipal Money
Market Fund++;
Dreyfus Massachusetts Tax Exempt
Bond Fund++;
Dreyfus Municipal Cash Management Plus++;
Dreyfus New Jersey Intermediate Municipal
Bond Fund++;
Dreyfus New York Municipal Cash
Management++;
Dreyfus New York Tax Exempt Intermediate
Bond Fund++;
Dreyfus Pennsylvania Intermediate
Municipal Bond Fund++;
DAVID W. BURKE Dreyfus Pennsylvania Municipal Money
(cont'd) Market Fund++;
Dreyfus Short-Intermediate Government
Fund++
Dreyfus Strategic Income++;
Dreyfus Strategic Investing++;
Dreyfus Tax Exempt Cash Management++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++
ELIE M. GENADRY President:
Vice President - Institutional Services Division of Dreyfus
Institutional Sales Service Corporation*;
Broker-Dealer Division of Dreyfus Service
Corporation*;
Group Retirement Plans Division of Dreyfus
Service Corporation;
Executive Vice President:
Dreyfus Service Corporation*;
Dreyfus Service Organization, Inc.*;
Senior Vice President:
Dreyfus Cash Management++;
Dreyfus Cash Management Plus, Inc.++;
Dreyfus Edison Electric Index Fund,
Inc.++;
Dreyfus Government Cash Management++;
Dreyfus Institutional Short Term
Treasury Fund++;
Dreyfus Life and Annuity Index Fund,
Inc.++;
Dreyfus Municipal Cash Management Plus++;
Dreyfus New York Municipal Cash
Management++;
Dreyfus Tax Exempt Cash Management++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++;
Dreyfus-Wilshire Target Funds, Inc.++;
Peoples Index Fund, Inc.++;
Peoples S&P MidCap Index Fund, Inc.++;
Vice President:
The Dreyfus Trust Company++;
Premier Insured Municipal Bond Fund++;
Premier California Municipal Bond Fund++;
Premier Municipal Bond Fund++;
Premier New York Municipal Bond Fund++;
Vice President-Sales:
The Dreyfus Trust Company (N.J.)++;
Treasurer:
Pacific American Fund+++++
DANIEL C. MACLEAN Director, Vice President and Secretary:
Vice President and General Dreyfus Precious Metals, Inc.*;
Counsel Director and Vice President:
The Dreyfus Consumer Credit Corporation*;
The Dreyfus Trust Company (N.J.)++;
Director and Secretary:
Dreyfus Partnership Management, Inc.*;
Major Trading Corporation*;
The Truepenny Corporation+;
Director:
Dreyfus America Fund++++;
The Dreyfus Trust Company++;
Vice President:
Dreyfus Appreciation Fund, Inc.++;
Dreyfus BASIC Municipal Fund++;
Dreyfus California Tax Exempt Bond Fund,
Inc.++;
Dreyfus California Tax Exempt Money Market
Fund++;
Dreyfus Capital Value Fund (A Premier
Fund)++;
Dreyfus Cash Management++;
Dreyfus Cash Management Plus, Inc.++;
Dreyfus Connecticut Municipal Money Market
Fund, Inc.++;
Dreyfus Edison Electric Index Fund,
Inc.++;
Dreyfus Florida Intermediate Municipal
Bond Fund++;
Dreyfus Focus Funds, Inc.++;
Dreyfus GNMA Fund, Inc.++;
Dreyfus Government Cash Management++;
Dreyfus Growth and Income Fund, Inc.++;
Dreyfus Growth Opportunity Fund, Inc.++;
Dreyfus Institutional Short Term
Treasury Fund++;
Dreyfus Insured Municipal Bond Fund,
Inc.++;
Dreyfus Intermediate Municipal Bond Fund,
Inc.++;
Dreyfus Investors GNMA Fund++;
Dreyfus Life and Annuity Index Fund,
Inc.++;
Dreyfus Massachusetts Municipal Money
Market Fund++;
Dreyfus Massachusetts Tax Exempt Bond
Fund++;
Dreyfus Michigan Municipal Money Market
Fund, Inc.++;
Dreyfus Municipal Cash Management Plus++;
Dreyfus New Jersey Municipal Money Market
Fund, Inc.++;
Dreyfus New Leaders Fund, Inc.++;
DANIEL C. MACLEAN Dreyfus New York Insured Tax Exempt Bond
(cont'd) Fund++;
Dreyfus New York Municipal Cash
Management++;
Dreyfus New York Tax Exempt Bond Fund,
Inc.++;
Dreyfus New York Tax Exempt Intermediate
Bond Fund++;
Dreyfus New York Tax Exempt Money Market
Fund++;
Dreyfus Ohio Municipal Money Market Fund,
Inc.++;
Dreyfus Pennsylvania Municipal Money
Market Fund++;
Dreyfus Short-Intermediate Government
Fund++;
Dreyfus Short-Intermediate Municipal Bond
Fund++;
The Dreyfus Socially Responsible Growth
Fund, Inc.++;
Dreyfus Tax Exempt Cash Management++;
The Dreyfus Third Century Fund, Inc.++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++;
Dreyfus-Wilshire Target Funds, Inc.++;
First Prairie Cash Management++;
First Prairie Diversified Asset Fund++;
First Prairie Money Market Fund++;
First Prairie Municipal Money Market
Fund++;
First Prairie Tax Exempt Bond Fund,
Inc. ++;
First Prairie U.S. Government Income
Fund++;
First Prairie U.S. Treasury Securities
Cash Management++;
General California Municipal Money Market
Fund++;
General Government Securities Money Market
Fund, Inc.++;
General Money Market Fund, Inc.++;
General Municipal Bond Fund, Inc.++;
General Municipal Money Market Fund,
Inc.++;
General New York Municipal Bond Fund,
Inc.++;
General New York Municipal Money Market
Fund++;
Peoples Index Fund, Inc.++;
Peoples S&P MidCap Index Fund, Inc.++;
Premier Insured Municipal Bond Fund++;
Premier California Municipal Bond Fund++;
Premier GNMA Fund++;
Premier Growth Fund, Inc.++;
Premier Municipal Bond Fund++;
DANIEL C. MACLEAN Premier New York Municipal Bond Fund++;
(cont'd) Premier State Municipal Bond Fund++;
Secretary:
Dreyfus A Bonds Plus, Inc.++;
Dreyfus Acquisition Corporation*;
Dreyfus Asset Allocation Fund, Inc.++;
Dreyfus Balanced Fund, Inc.++;
Dreyfus BASIC Money Market Fund, Inc.++;
Dreyfus BASIC U.S. Government Money Market
Fund++;
Dreyfus California Intermediate Municipal
Bond Fund++;
Dreyfus California Municipal Income,
Inc.++;
Dreyfus Capital Growth Fund (A Premier
Fund)++;
Dreyfus Connecticut Intermediate Municipal
Bond Fund++;
Dreyfus Florida Municipal Money Market
Fund++;
The Dreyfus Fund Incorporated++;
Dreyfus Global Bond Fund, Inc.++;
Dreyfus Global Growth, L.P. (A Strategic
Fund)++;
Dreyfus Global Investing++;
Dreyfus Growth Allocation Fund, Inc.++;
Dreyfus Institutional Money Market Fund++;
Dreyfus International Equity Fund, Inc.++;
Dreyfus Massachusetts Intermediate
Municipal Bond Fund++;
Dreyfus Money Market Instruments, Inc.++;
Dreyfus Municipal Bond Fund, Inc.++;
Dreyfus Municipal Income, Inc.++;
Dreyfus Municipal Money Market Fund,
Inc.++;
Dreyfus New Jersey Intermediate Municipal
Bond Fund++;
Dreyfus New Jersey Municipal Bond Fund,
Inc.++;
Dreyfus New York Municipal Income, Inc.++;
Dreyfus 100% U.S. Treasury Intermediate
Term Fund++;
Dreyfus 100% U.S. Treasury Long Term
Fund++;
Dreyfus 100% U.S. Treasury Money Market
Fund++;
Dreyfus 100% U.S. Treasury Short Term
Fund++;
Dreyfus Pennsylvania Intermediate
Municipal Bond Fund++;
Dreyfus Service Corporation*;
Dreyfus Service Organization, Inc.*;
Dreyfus Short-Term Income Fund, Inc.++;
Dreyfus Strategic Governments Income,
Inc.++;
Dreyfus Strategic Growth, L.P.++;
Dreyfus Strategic Income++;
Dreyfus Strategic Investing++;
DANIEL C. MACLEAN Dreyfus Strategic Municipal Bond Fund,
(cont'd) Inc.++;
Dreyfus Strategic Municipals, Inc.++;
Dreyfus Variable Investment Fund++;
Dreyfus Worldwide Dollar Money Market
Fund, Inc.++;
General California Municipal Bond Fund,
Inc.++;
Seven Six Seven Agency, Inc.*;
Director and Assistant Secretary:
The Dreyfus Fund International
Limited++++++
JEFFREY N. NACHMAN Vice President-Financial:
Vice President - Mutual Dreyfus A Bonds Plus, Inc.++;
Fund Accounting Dreyfus Appreciation Fund, Inc.++;
Dreyfus California Municipal Income,
Inc.++;
Dreyfus California Tax Exempt Bond Fund,
Inc.++;
Dreyfus California Tax Exempt Money Market
Fund++;
Dreyfus Capital Growth Fund (A Premier
Fund)++;
Dreyfus Capital Value Fund (A Premier
Fund)++;
Dreyfus Cash Management++;
Dreyfus Cash Management Plus, Inc.++;
Dreyfus Connecticut Municipal Money Market
Fund, Inc.++;
The Dreyfus Fund Incorporated++;
Dreyfus Global Growth, L.P. (A Strategic
Fund)++;
Dreyfus GNMA Fund, Inc.++;
Dreyfus Government Cash Management++;
Dreyfus Growth Opportunity Fund, Inc.++;
Dreyfus Institutional Money Market Fund++;
Dreyfus Insured Municipal Bond Fund,
Inc.++;
Dreyfus Intermediate Municipal Bond Fund,
Inc.++;
Dreyfus Investors GNMA Fund++;
Dreyfus Life and Annuity Index Fund,
Inc.++;
Dreyfus Liquid Assets, Inc.++;
Dreyfus Massachusetts Municipal Money
Market Fund++;
Dreyfus Massachusetts Tax Exempt Bond
Fund++;
Dreyfus Michigan Municipal Money Market
Fund, Inc.++;
Dreyfus Money Market Instruments, Inc.++;
Dreyfus Municipal Bond Fund, Inc.++;
Dreyfus Municipal Cash Management Plus++;
Dreyfus Municipal Income, Inc.++;
Dreyfus Municipal Money Market Fund,
Inc.++;
JEFFREY N. NACHMAN Dreyfus New Jersey Municipal Bond Fund,
(cont'd) Inc.++;
Dreyfus New Jersey Municipal Money Market
Fund, Inc.++;
Dreyfus New Leaders Fund, Inc.++;
Dreyfus New York Insured Tax Exempt Bond
Fund++;
Dreyfus New York Municipal Income, Inc.++;
Dreyfus New York Tax Exempt Bond Fund,
Inc.++;
Dreyfus New York Tax Exempt Intermediate
Bond Fund++;
Dreyfus New York Tax Exempt Money Market
Fund++;
Dreyfus Ohio Municipal Money Market Fund,
Inc.++;
Dreyfus 100% U.S. Treasury Intermediate
Term Fund++;
Dreyfus 100% U.S. Treasury Long Term
Fund++;
Dreyfus 100% U.S. Treasury Money Market
Fund++;
Dreyfus 100% U.S. Treasury Short Term
Fund++;
Dreyfus Pennsylvania Municipal Money
Market Fund++;
Dreyfus Short-Intermediate Government
Fund++;
Dreyfus Short-Intermediate Municipal Bond
Fund++;
Dreyfus Strategic Governments Income,
Inc.++;
Dreyfus Strategic Growth, L.P.++;
Dreyfus Strategic Income++;
Dreyfus Strategic Investing++;
Dreyfus Strategic Municipal Bond Fund,
Inc.++;
Dreyfus Strategic Municipals, Inc.++;
Dreyfus Tax Exempt Cash Management++;
The Dreyfus Third Century Fund, Inc.++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++;
Dreyfus Variable Investment Fund++;
Dreyfus Worldwide Dollar Money Market
Fund, Inc.++;
First Prairie Diversified Asset Fund++;
First Prairie Money Market Fund++;
First Prairie Municipal Money Market
Fund++;
First Prairie Tax Exempt Bond Fund,
Inc.++;
General California Municipal Bond Fund,
Inc.++;
General California Municipal Money Market
Fund++;
JEFFREY N. NACHMAN General Government Securities Money Market
(cont'd) Fund, Inc.++;
General Money Market Fund, Inc.++;
General Municipal Bond Fund, Inc.++;
General Municipal Money Market Fund,
Inc.++;
General New York Municipal Bond Fund,
Inc.++;
General New York Municipal Money Market
Fund++;
Peoples Index Fund, Inc.++;
Premier California Municipal Bond Fund++;
Premier GNMA Fund++;
Premier Municipal Bond Fund++;
Premier New York Municipal Bond Fund++;
Premier State Municipal Bond Fund++;
Vice President and Treasurer:
Dreyfus Asset Allocation Fund, Inc.++;
Dreyfus Balanced Fund, Inc.++;
Dreyfus BASIC Money Market Fund, Inc.++;
Dreyfus BASIC Municipal Fund++;
Dreyfus BASIC U.S. Government Money Market
Fund++;
Dreyfus California Intermediate Municipal
Bond Fund++;
Dreyfus Connecticut Intermediate Municipal
Bond Fund++;
Dreyfus Edison Electric Index Fund,
Inc.++;
Dreyfus Florida Intermediate Municipal
Bond Fund++;
Dreyfus Florida Municipal Money Market
Fund++;
Dreyfus Focus Funds, Inc.++;
Dreyfus Global Bond Fund, Inc.++;
Dreyfus Global Investing++;
Dreyfus Growth Allocation Fund,
Inc.++;
Dreyfus Growth and Income Fund, Inc.++;
Dreyfus Institutional Short Term
Treasury Fund++;
Dreyfus International Equity Fund, Inc.++;
Dreyfus Massachusetts Intermediate
Municipal Bond Fund++;
Dreyfus New Jersey Intermediate Municipal
Bond Fund++;
Dreyfus New York Municipal Cash
Management++;
Dreyfus Pennsylvania Intermediate
Municipal Bond Fund++;
Dreyfus Short-Term Income Fund, Inc.++;
The Dreyfus Socially Responsible Growth
Fund, Inc.++;
Dreyfus-Wilshire Target Funds, Inc.++;
First Prairie Cash Management++;
First Prairie U.S. Government Income
Fund++;
JEFFREY N. NACHMAN First Prairie U.S. Treasury Securities
(Cont'd) Cash Management++;
Peoples S&P MidCap Index Fund, Inc.++;
Premier Growth Fund, Inc.++;
Premier Insured Municipal Bond Fund++;
Assistant Treasurer:
Pacific American Fund+++++
PETER A. SANTORIELLO Director, President and Investment
Vice President Officer:
Dreyfus Balanced Fund, Inc.++;
Director and President:
Dreyfus Management, Inc.*;
Vice President:
Dreyfus Personal Management, Inc.*
KIRK V. STUMPP Senior Vice President and
Vice President - Director of Marketing:
New Product Development Dreyfus Service Corporation*
PHILIP L. TOIA Chairman of the Board and Vice President:
Vice President and Dreyfus Thrift & Commerce****;
Director of Fixed- Director:
Income Research The Dreyfus Security Savings Bank F.S.B.+;
Senior Loan Officer and Director:
The Dreyfus Trust Company++;
Vice President:
The Dreyfus Consumer Credit Corporation*;
President and Director:
Dreyfus Personal Management, Inc.*;
Director:
Dreyfus Realty Advisors, Inc.+++;
Formerly, Senior Vice President:
The Chase Manhattan Bank, N.A. and
The Chase Manhattan Capital Markets
Corporation
One Chase Manhattan Plaza
New York, New York 10081
KATHERINE C. WICKHAM Formerly, Assistant Commissioner:
Assistant Vice President - Department of Parks and Recreation of the
Human Resources City of New York
830 Fifth Avenue
New York, New York 10022
JOHN J. PYBURN Treasurer and Assistant Secretary:
Assistant Vice President The Dreyfus Fund International
Limited++++++;
Treasurer:
Dreyfus A Bonds Plus, Inc.++;
Dreyfus Appreciation Fund, Inc.++;
Dreyfus California Municipal Income,
Inc.++;
Dreyfus California Tax Exempt Bond Fund,
Inc.++;
JOHN J. PYBURN Dreyfus California Tax Exempt Money Market
(cont'd) Fund++;
Dreyfus Capital Growth Fund (A Premier
Fund)++;
Dreyfus Capital Value Fund (A Premier
Fund)++;
Dreyfus Cash Management++;
Dreyfus Cash Management Plus, Inc.++;
Dreyfus Connecticut Municipal Money Market
Fund, Inc.++;
The Dreyfus Fund Incorporated++;
Dreyfus Global Growth, L.P. (A Strategic
Fund)++;
Dreyfus GNMA Fund, Inc.++;
Dreyfus Government Cash Management++;
Dreyfus Growth Opportunity Fund, Inc.++;
Dreyfus Institutional Money Market Fund++;
Dreyfus Insured Municipal Bond Fund,
Inc.++;
Dreyfus Intermediate Municipal Bond Fund,
Inc.++;
Dreyfus Investors GNMA Fund++;
Dreyfus Life and Annuity Index Fund,
Inc.++;
Dreyfus Liquid Assets, Inc.++;
Dreyfus Massachusetts Municipal Money
Market Fund++;
Dreyfus Massachusetts Tax Exempt Bond
Fund++;
Dreyfus Michigan Municipal Money Market
Fund, Inc.++;
Dreyfus Money Market Instruments, Inc.++;
Dreyfus Municipal Bond Fund, Inc.++;
Dreyfus Municipal Cash Management Plus++;
Dreyfus Municipal Income, Inc.++;
Dreyfus Municipal Money Market Fund,
Inc.++;
Dreyfus New Jersey Municipal Bond Fund,
Inc.++;
Dreyfus New Jersey Municipal Money Market
Fund, Inc.++;
Dreyfus New Leaders Fund, Inc.++;
Dreyfus New York Insured Tax Exempt Bond
Fund++;
Dreyfus New York Municipal Income, Inc.++;
Dreyfus New York Tax Exempt Bond Fund,
Inc.++;
Dreyfus New York Tax Exempt Intermediate
Bond Fund++;
Dreyfus New York Tax Exempt Money Market
Fund++;
Dreyfus Ohio Municipal Money Market Fund,
Inc.++;
Dreyfus 100% U.S. Treasury Intermediate
Term Fund++;
Dreyfus 100% U.S. Treasury Long Term
Fund++;
JOHN J. PYBURN Dreyfus 100% U.S. Treasury Money Market
(cont'd) Fund++;
Dreyfus 100% U.S. Treasury Short Term
Fund++;
Dreyfus Pennsylvania Municipal Money
Market Fund++;
Dreyfus Short-Intermediate Government
Fund++;
Dreyfus Short-Intermediate Municipal Bond
Fund++;
Dreyfus Strategic Governments Income,
Inc.++;
Dreyfus Strategic Growth, L.P.++;
Dreyfus Strategic Income++;
Dreyfus Strategic Investing++;
Dreyfus Strategic Municipal Bond Fund,
Inc.++;
Dreyfus Strategic Municipals, Inc.++;
Dreyfus Tax Exempt Cash Management++;
The Dreyfus Third Century Fund, Inc.++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++;
Dreyfus Variable Investment Fund++;
Dreyfus Worldwide Dollar Money Market
Fund, Inc.++;
First Prairie Diversified Asset Fund++;
First Prairie Money Market Fund++;
First Prairie Municipal Money Market
Fund++;
First Prairie Tax Exempt Bond Fund,
Inc. ++;
General California Municipal Bond Fund,
Inc.++;
General California Municipal Money Market
Fund++;
General Government Securities Money Market
Fund, Inc.++;
General Money Market Fund, Inc.++;
General Municipal Bond Fund, Inc.++;
General Municipal Money Market Fund,
Inc.++;
General New York Municipal Bond Fund,
Inc.++;
General New York Municipal Money Market
Fund++;
Peoples Index Fund, Inc.++;
Premier California Municipal Bond Fund++;
Premier GNMA Fund++;
Premier Municipal Bond Fund++;
Premier New York Municipal Bond Fund++;
Premier State Municipal Bond Fund++
MAURICE BENDRIHEM Treasurer:
Controller Dreyfus Partnership Management, Inc.*;
Dreyfus Service Organization, Inc.*;
Seven Six Seven Agency, Inc.*;
The Truepenny Corporation*;
MAURICE BENDRIHEM Controller:
(cont'd) Dreyfus Acquisition Corporation*;
The Dreyfus Trust Company++;
The Dreyfus Trust Company (N.J.)++;
The Dreyfus Consumer Credit Corporation*;
Assistant Treasurer:
Dreyfus Precious Metals*
Formerly, Vice President-Financial Planning,
Administration and Tax:
Showtime/The Movie Channel, Inc.
1633 Broadway
New York, New York 10019
MARK N. JACOBS Vice President:
Secretary and Deputy Dreyfus A Bonds Plus, Inc.++;
General Counsel Dreyfus Asset Allocation Fund, Inc.++;
Dreyfus Balanced Fund, Inc.++;
Dreyfus BASIC Money Market Fund, Inc.++;
Dreyfus BASIC U.S. Government Money Market
Fund++;
Dreyfus California Intermediate Municipal
Bond Fund++;
Dreyfus Capital Growth Fund (A Premier
Fund)++;
Dreyfus Connecticut Intermediate Municipal
Bond Fund++;
Dreyfus Edison Electric Index Fund,
Inc.++;
Dreyfus Florida Municipal Money Market
Fund++;
Dreyfus Focus Funds, Inc.++;
The Dreyfus Fund Incorporated++;
Dreyfus Global Bond Fund, Inc.++;
Dreyfus Global Growth, L.P. (A Strategic
Fund)++;
Dreyfus Global Investing++;
Dreyfus Growth Allocation Fund,
Inc.++;
Dreyfus Institutional Money Market Fund++;
Dreyfus International Equity Fund, Inc.++;
Dreyfus Life and Annuity Index Fund,
Inc.++;
Dreyfus Liquid Assets, Inc.++;
Dreyfus Massachusetts Intermediate
Municipal Bond Fund++;
Dreyfus Money Market Instruments, Inc.++;
Dreyfus Municipal Bond Fund, Inc.++;
Dreyfus Municipal Money Market Fund,
Inc.++;
Dreyfus New Jersey Intermediate Municipal
Bond Fund++;
Dreyfus New Jersey Municipal Bond Fund,
Inc.++;
Dreyfus 100% U.S. Treasury Intermediate
Term Fund++;
Dreyfus 100% U.S. Treasury Long Term
Fund++;
MARK N. JACOBS Dreyfus 100% U.S. Treasury Money Market
(cont'd) Fund++;
Dreyfus 100% U.S. Treasury Short Term
Fund++;
Dreyfus Pennsylvania Intermediate
Municipal Bond Fund++;
Dreyfus Short-Term Income Fund, Inc.++;
Dreyfus Strategic Growth, L.P.++;
Dreyfus Strategic Income++;
Dreyfus Strategic Investing++;
Dreyfus Strategic Municipal Bond Fund,
Inc.++;
Dreyfus Strategic Municipals, Inc.++;
Dreyfus Variable Investment Fund++;
Dreyfus-Wilshire Target Funds, Inc.++;
Dreyfus Worldwide Dollar Money Market
Fund, Inc.++;
General California Municipal Bond Fund,
Inc.++;
Peoples Index Fund, Inc.++;
Peoples S&P MidCap Index Fund, Inc.++;
Director:
World Balanced Fund++++;
Secretary:
Dreyfus Appreciation Fund, Inc.++;
Dreyfus BASIC Municipal Fund++;
Dreyfus California Tax Exempt Bond Fund,
Inc.++;
Dreyfus California Tax Exempt Money Market
Fund++;
Dreyfus Capital Value Fund (A Premier
Fund)++;
Dreyfus Cash Management++;
Dreyfus Cash Management Plus, Inc.++;
Dreyfus Connecticut Municipal Money Market
Fund, Inc.++;
The Dreyfus Consumer Credit Corporation*;
Dreyfus Florida Intermediate Municipal
Bond Fund++;
Dreyfus GNMA Fund, Inc.++;
Dreyfus Government Cash Management++;
Dreyfus Growth and Income Fund, Inc.++;
Dreyfus Growth Opportunity Fund, Inc.++;
Dreyfus Institutional Short Term
Treasury Fund++;
Dreyfus Insured Municipal Bond Fund,
Inc.++;
Dreyfus Intermediate Municipal Bond Fund,
Inc.++;
Dreyfus Investors GNMA Fund++;
Dreyfus Management, Inc.*;
Dreyfus Massachusetts Municipal Money
Market Fund++;
Dreyfus Massachusetts Tax Exempt Bond
Fund++;
Dreyfus Michigan Municipal Money Market
Fund, Inc.++;
MARK N. JACOBS Dreyfus Municipal Cash Management Plus++;
(cont'd) Dreyfus New Jersey Municipal Money Market
Fund, Inc.++;
Dreyfus New Leaders Fund, Inc.++;
Dreyfus New York Insured Tax Exempt Bond
Fund++;
Dreyfus New York Municipal Cash
Management++;
Dreyfus New York Tax Exempt Bond Fund,
Inc.++;
Dreyfus New York Tax Exempt Intermediate
Bond Fund++;
Dreyfus New York Tax Exempt Money Market
Fund++;
Dreyfus Ohio Municipal Money Market Fund,
Inc.++;
Dreyfus Pennsylvania Municipal Money
Market Fund++;
Dreyfus Short-Intermediate Government
Fund++;
Dreyfus Short-Intermediate Municipal Bond
Fund++;
The Dreyfus Socially Responsible Growth
Fund, Inc.++;
Dreyfus Tax Exempt Cash Management++;
The Dreyfus Third Century Fund, Inc.++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++;
First Prairie Cash Management++;
First Prairie Diversified Asset Fund++;
First Prairie Money Market Fund++;
First Prairie Municipal Money Market
Fund++;
First Prairie Tax Exempt Bond Fund,
Inc. ++;
First Prairie U.S. Government Income
Fund++;
First Prairie U.S. Treasury Securities
Cash Management++;
General California Municipal Money Market
Fund++;
General Government Securities Money Market
Fund, Inc.++;
General Money Market Fund, Inc.++;
General Municipal Bond Fund, Inc.++;
General Municipal Money Market Fund,
Inc.++;
General New York Municipal Bond Fund,
Inc.++;
General New York Municipal Money Market
Fund++;
Pacific American Fund+++++;
Premier Insured Municipal Bond Fund++;
Premier California Municipal Bond Fund++;
Premier GNMA Fund++;
Premier Growth Fund, Inc.++;
Premier Municipal Bond Fund++;
Premier New York Municipal Bond Fund++;
MARK N. JACOBS Premier State Municipal Bond Fund++;
(cont'd) Assistant Secretary:
Dreyfus Service Organization, Inc.*;
Major Trading Corporation*;
The Truepenny Corporation*
CHRISTINE PAVALOS Assistant Secretary:
Assistant Secretary Dreyfus A Bonds Plus, Inc.++;
Dreyfus Acquisition Corporation*;
Dreyfus Appreciation Fund, Inc.++;
Dreyfus Asset Allocation Fund, Inc.++;
Dreyfus Balanced Fund, Inc.++;
Dreyfus BASIC Money Market Fund, Inc.++;
Dreyfus BASIC Municipal Fund++;
Dreyfus BASIC U.S. Government Money Market
Fund++;
Dreyfus California Intermediate Municipal
Bond Fund++;
Dreyfus California Municipal Income,
Inc.++;
Dreyfus California Tax Exempt Bond Fund,
Inc.++;
Dreyfus California Tax Exempt Money Market
Fund++;
Dreyfus Capital Growth Fund (A Premier
Fund)++;
Dreyfus Capital Value Fund, (A Premier
Fund)++;
Dreyfus Cash Management++;
Dreyfus Cash Management Plus, Inc.++;
Dreyfus Connecticut Intermediate
Municipal Bond Fund++;
Dreyfus Connecticut Municipal Money Market
Fund, Inc.++;
Dreyfus Edison Electric Index Fund,
Inc.++;
Dreyfus Florida Intermediate Municipal
Bond Fund++;
Dreyfus Florida Municipal Money Market
Fund++;
Dreyfus Focus Funds, Inc.++;
The Dreyfus Fund Incorporated++;
Dreyfus Global Bond Fund, Inc.++;
Dreyfus Global Growth, L.P. (A Strategic
Fund)++;
Dreyfus Global Investing++;
Dreyfus GNMA Fund, Inc.++;
Dreyfus Government Cash Management++;
Dreyfus Growth Allocation Fund,
Inc.++;
Dreyfus Growth and Income, Inc.++;
Dreyfus Growth Opportunity Fund, Inc.++;
Dreyfus Institutional Money Market Fund++;
Dreyfus Institutional Short Term
Treasury Fund++;
Dreyfus Insured Municipal Bond Fund,
Inc.++;
Dreyfus Intermediate Municipal Bond Fund,
Inc.++;
CHRISTINE PAVALOS Dreyfus International Equity Fund, Inc.++;
(cont'd) Dreyfus Investors GNMA Fund++;
Dreyfus Life and Annuity Index Fund,
Inc.++;
Dreyfus Liquid Assets, Inc.++;
Dreyfus Management, Inc.*;
Dreyfus Massachusetts Intermediate
Municipal Bond Fund++;
Dreyfus Massachusetts Municipal Money
Market Fund++;
Dreyfus Massachusetts Tax Exempt Bond
Fund++;
Dreyfus Michigan Municipal Money Market
Fund, Inc.++;
Dreyfus Money Market Instruments, Inc.++;
Dreyfus Municipal Bond Fund, Inc.++;
Dreyfus Municipal Cash Management Plus++;
Dreyfus Municipal Income, Inc.++;
Dreyfus Municipal Money Market Fund,
Inc.++;
Dreyfus New Jersey Intermediate Municipal
Bond Fund++;
Dreyfus New Jersey Municipal Bond Fund,
Inc.++;
Dreyfus New Jersey Municipal Money Market
Fund, Inc.++;
Dreyfus New Leaders Fund, Inc.++;
Dreyfus New York Insured Tax Exempt Bond
Fund++;
Dreyfus New York Municipal Cash
Management++;
Dreyfus New York Municipal Income, Inc.++;
Dreyfus New York Tax Exempt Bond Fund,
Inc.++;
Dreyfus New York Tax Exempt Intermediate
Bond Fund++;
Dreyfus New York Tax Exempt Money Market
Fund++;
Dreyfus Ohio Municipal Money Market Fund,
Inc.++;
Dreyfus 100% U.S. Treasury Intermediate
Term Fund++;
Dreyfus 100% U.S. Treasury Long Term
Fund++;
Dreyfus 100% U.S. Treasury Money Market
Fund++;
Dreyfus 100% U.S. Treasury Short Term
Fund++;
Dreyfus Pennsylvania Intermediate
Municipal Bond Fund++;
Dreyfus Pennsylvania Municipal Money
Market Fund++;
Dreyfus Service Corporation*;
Dreyfus Short-Intermediate Government
Fund++;
Dreyfus Short-Intermediate Municipal Bond
Fund++;
Dreyfus Short-Term Income Fund, Inc.++;
CHRISTINE PAVALOS The Dreyfus Socially Responsible Growth
(cont'd) Fund, Inc.++;
Dreyfus Strategic Governments Income,
Inc.++;
Dreyfus Strategic Growth, L.P.++;
Dreyfus Strategic Income++;
Dreyfus Strategic Investing++;
Dreyfus Strategic Municipal Bond Fund,
Inc.++;
Dreyfus Strategic Municipals, Inc.++;
Dreyfus Tax Exempt Cash Management++;
The Dreyfus Third Century Fund, Inc.++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++;
Dreyfus Variable Investment Fund++;
Dreyfus-Wilshire Target Funds, Inc.++;
Dreyfus Worldwide Dollar Money Market
Fund, Inc.++;
First Prairie Cash Management++;
First Prairie Diversified Asset Fund++;
First Prairie Money Market Fund++;
First Prairie Tax Exempt Bond Fund,
Inc. ++;
First Prairie Municipal Money Market
Fund++;
First Prairie U.S. Government Income
Fund++;
First Prairie U.S. Treasury Securities
Cash Management++;
General California Municipal Bond Fund,
Inc.++;
General California Municipal Money Market
Fund++;
General Government Securities Money Market
Fund, Inc.++;
General Money Market Fund, Inc.++;
General Municipal Bond Fund, Inc.++;
General Municipal Money Market Fund,
Inc.++;
General New York Municipal Bond Fund,
Inc.++;
General New York Municipal Money Market
Fund++;
Peoples Index Fund, Inc.++;
Peoples S&P MidCap Index Fund, Inc.++;
Premier Insured Municipal Bond Fund++;
Premier California Municipal Bond Fund++;
Premier GNMA Fund++;
Premier Growth Fund, Inc.++;
Premier Municipal Bond Fund++;
Premier New York Municipal Bond Fund++;
Premier State Municipal Bond Fund++;
The Truepenny Corporation*
______________________________________
* The address of the business so indicated is 200 Park Avenue, New
York, New York 10166.
** The address of the business so indicated is 80 Cutter Mill Road,
Great Neck, New York 11021.
*** The address of the business so indicated is 45 Broadway, New York,
New York 10006.
**** The address of the business so indicated is Five Triad Center, Salt
Lake City, Utah 84180.
+ The address of the business so indicated is Atrium Building, 80 Route
4 East, Paramus, New Jersey 07652.
++ The address of the business so indicated is 144 Glenn Curtiss
Boulevard, Uniondale, New York 11556-0144.
+++ The address of the business so indicated is One Rockefeller Plaza,
New York, New York 10020.
++++ The address of the business so indicated is 2 Boulevard Royal,
Luxembourg.
+++++ The address of the business so indicated is 800 West Sixth Street,
Suite 1000, Los Angeles, California 90017.
++++++ The address of the business so indicated is Nassau, Bahama Islands.
Item 29. Principal Underwriters
________ ______________________
(a) Other investment companies for which Registrant's principal
underwriter (exclusive distributor) acts as principal underwriter or
exclusive distributor:
1) Comstock Partners Strategy Fund, Inc.
2) Dreyfus A Bonds Plus, Inc.
3) Dreyfus Appreciation Fund, Inc.
4) Dreyfus Asset Allocation Fund, Inc.
5) Dreyfus Balanced Fund, Inc.
6) Dreyfus BASIC Money Market Fund, Inc.
7) Dreyfus BASIC Municipal Fund
8) Dreyfus BASIC U.S. Government Money Market Fund
9) Dreyfus California Intermediate Municipal Bond Fund
10) Dreyfus California Tax Exempt Bond Fund, Inc.
11) Dreyfus California Tax Exempt Money Market Fund
12) Dreyfus Capital Value Fund, Inc.
13) Dreyfus Cash Management
14) Dreyfus Cash Management Plus, Inc.
15) Dreyfus Connecticut Intermediate Municipal Bond Fund
16) Dreyfus Connecticut Municipal Money Market Fund, Inc.
17) The Dreyfus Convertible Securities Fund, Inc.
18) Dreyfus Edison Electric Index Fund, Inc.
19) Dreyfus Florida Intermediate Municipal Bond Fund
20) Dreyfus Florida Municipal Money Market Fund
21) Dreyfus Focus Funds, Inc.
22) The Dreyfus Fund Incorporated
23) Dreyfus Global Bond Fund, Inc.
24) Dreyfus Global Growth, L.P. (A Strategic Fund)
25) Dreyfus Global Investing, Inc.
26) Dreyfus GNMA Fund, Inc.
27) Dreyfus Government Cash Management
28) Dreyfus Growth and Income Fund, Inc.
29) Dreyfus Growth Opportunity Fund, Inc.
30) Dreyfus Institutional Money Market Fund
31) Dreyfus Institutional Short Term Treasury Fund
32) Dreyfus Insured Municipal Bond Fund, Inc.
33) Dreyfus Intermediate Municipal Bond Fund, Inc.
34) Dreyfus International Equity Fund, Inc.
35) Dreyfus Investors GNMA Fund
36) The Dreyfus Leverage Fund, Inc.
37) Dreyfus Life and Annuity Index Fund, Inc.
38) Dreyfus Liquid Assets, Inc.
39) Dreyfus Massachusetts Intermediate Municipal Bond Fund
40) Dreyfus Massachusetts Municipal Money Market Fund
41) Dreyfus Massachusetts Tax Exempt Bond Fund
42) Dreyfus Michigan Municipal Money Market Fund, Inc.
43) Dreyfus Money Market Instruments, Inc.
44) Dreyfus Municipal Bond Fund, Inc.
45) Dreyfus Municipal Cash Management Plus
46) Dreyfus Municipal Money Market Fund, Inc.
47) Dreyfus New Jersey Intermediate Municipal Bond Fund
48) Dreyfus New Jersey Municipal Bond Fund, Inc.
49) Dreyfus New Jersey Municipal Money Market Fund, Inc.
50) Dreyfus New Leaders Fund, Inc.
51) Dreyfus New York Insured Tax Exempt Bond Fund
52) Dreyfus New York Municipal Cash Management
53) Dreyfus New York Tax Exempt Bond Fund, Inc.
54) Dreyfus New York Tax Exempt Money Market Fund
55) Dreyfus Ohio Municipal Money Market Fund, Inc.
56) Dreyfus 100% U.S. Treasury Intermediate Term Fund
57) Dreyfus 100% U.S. Treasury Long Term Fund
58) Dreyfus 100% U.S. Treasury Money Market Fund
59) Dreyfus 100% U.S. Treasury Short Term Fund
60) Dreyfus Pennsylvania Intermediate Municipal Bond Fund
61) Dreyfus Pennsylvania Municipal Money Market Fund
62) Dreyfus Short-Intermediate Government Fund
63) Dreyfus Short-Intermediate Municipal Bond Fund
64) Dreyfus Short-Term Income Fund, Inc.
65) The Dreyfus Socially Responsible Growth Fund, Inc.
66) Dreyfus Strategic Growth, L.P.
67) Dreyfus Strategic Income
68) Dreyfus Strategic Investing
69) Dreyfus Tax Exempt Cash Management
70) The Dreyfus Third Century Fund, Inc.
71) Dreyfus Treasury Cash Management
72) Dreyfus Treasury Prime Cash Management
73) Dreyfus Variable Investment Fund
74) Dreyfus-Wilshire Target Funds, Inc.
75) Dreyfus Worldwide Dollar Money Market Fund, Inc.
76) First Prairie Cash Management
77) First Prairie Diversified Asset Fund
78) First Prairie Money Market Fund
79) First Prairie Municipal Money Market Fund
80) First Prairie Tax Exempt Bond Fund, Inc.
81) First Prairie U.S. Government Income Fund
82) First Prairie U.S. Treasury Securities Cash Management
83) General California Municipal Bond Fund, Inc.
84) General California Municipal Money Market Fund
85) General Government Securities Money Market Fund, Inc.
86) General Money Market Fund, Inc.
87) General Municipal Bond Fund, Inc.
88) General Municipal Money Market Fund, Inc.
89) General New York Municipal Bond Fund, Inc.
90) General New York Municipal Money Market Fund
91) Pacific American Fund
92) Peoples Index Fund, Inc.
93) Peoples S&P MidCap Index Fund, Inc.
94) Premier Insured Municipal Bond Fund
95) Premier California Municipal Bond Fund
96) Premier GNMA Fund
97) Premier Growth Fund, Inc.
98) Premier Municipal Bond Fund
99) Premier New York Municipal Bond Fund
100) Premier State Municipal Bond Fund
(b)
Positions and
Name and principal Positions and offices with offices with
business address Dreyfus Service Corporation Registrant
__________________ ___________________________ _____________
Howard Stein* Chairman of the Board None
Robert H. Schmidt* President and Director None
Joseph S. DiMartino* Executive Vice President and Director None
Lawrence M. Greene* Executive Vice President and Director None
Julian M. Smerling* Executive Vice President and Director None
Elie M. Genadry* Executive Vice President Vice
President
Henry D. Gottmann* Executive Vice President None
Donald A. Nanfeldt* Executive Vice President Vice
President
Kevin Flood* Senior Vice President None
Roy Gross* Senior Vice President None
Irene Papadoulis** Senior Vice President None
Kirk Stumpp* Senior Vice President and None
Director of Marketing
Diane M. Coffey* Vice President None
Walter T. Harris* Vice President None
William Harvey* Vice President None
Adwick Pinnock** Vice President None
George Pirrone* Vice President/Trading None
Karen Rubin Waldmann* Vice President None
Peter D. Schwab* Vice President/New Products None
Michael Anderson* Assistant Vice President None
Carolyn Sobering* Assistant Vice President-Trading None
Daniel C. Maclean* Secretary Vice
President
Robert F. Dubuss* Treasurer None
Maurice Bendrihem* Controller None
Michael J. Dolitsky* Assistant Controller None
Susan Verbil Goldgraben* Assistant Treasurer None
Christine Pavalos* Assistant Secretary Assistant
Secretary
Broker-Dealer Division of Dreyfus Service Corporation
=====================================================
Positions and offices with Positions and
Name and principal Broker-Dealer Division of offices with
business address Dreyfus Service Corporation Registrant
__________________ ___________________________ _____________
Elie M. Genadry* President Vice
President
Craig E. Smith* Executive Vice President None
Peter Moeller* Vice President and Sales Manager None
Kristina Williams
Pomano Beach, FL Vice President-Administration None
James Barr
Newton, MA Regional Vice President None
Mary B. Brundage
Pasadena, CA Regional Vice President None
Edward Donley
Latham, NY Regional Vice President None
Thomas Ellis
Ranchero Murietta, CA Regional Vice President None
Glenn Farinacci* Regional Vice President None
Peter S. Ferrentino
San Francisco, CA Regional Vice President None
William Frey
Hoffman Estates, IL Regional Vice President None
Suzanne Haley
Tampa, FL Regional Vice President None
Philip Jochem
Warrington, PA Regional Vice President None
Richard P. Kundracik
Waterford, MI Regional Vice President None
Michael Lane
Beaver Falls, PA Regional Vice President None
Fred Lanier
Atlanta, GA Regional Vice President None
Beth Presson
Colchester, VT Regional Vice President None
Joseph Reaves
New Orleans, LA Regional Vice President None
Christian Renninger
Germantown, MD Regional Vice President None
Robert J. Richardson
Houston, TX Regional Vice President None
Kurt Wiessner
Minneapolis, MN Regional Vice President None
Institutional Services Division of Dreyfus Service Corporation
==============================================================
Positions and offices with Positions and
Name and principal Institutional Services Division offices with
business address of Dreyfus Service Corporation Registrant
__________________ _______________________________ _____________
Elie M. Genadry* President Vice
President
Donald A. Nanfeldt* Executive Vice President Vice
President
Kathleen M. Lewis++ Vice President-Institutional None
Sales Manager
Charles Cardona** Senior Vice President- None
Institutional Services
Stacy Alexander* Vice President-Bank Wholesale None
Eric Almquist* Vice President-Eastern Regional None
Sales Manager
James E. Baskin+++++++ Vice President-Institutional Sales None
Kenneth Bernstein
Boca Raton, FL Vice President-Bank Wholesale None
Stephen Burke* Vice President-Bank Wholesaler None
Sales Manager
Laurel A. Diedrick
Burrows*** Vice President-Bank Wholesale None
Gary F. Callahan
Somerville, NJ Vice President-Bank Wholesale None
Daniel L. Clawson++++ Vice President-Institutional Sales None
Anthony T. Corallo
San Francisco, CA Vice President-Institutional Sales None
Bonnie M. Cymbryla
Brewerton, NY Vice President-Bank Wholesale None
William Davis
Bellevue, WA Vice President None
William E. Findley**** Vice President None
Melinda Miller Gordon* Vice President None
Christina Haydt++ Vice President-Institutional Sales None
Carol Anne Kelty* Vice President-Institutional Sales None
Gwenn Kessler***** Vice President-Bank Wholesale None
Bradford Lange* Vice President-Bank Wholesale None
Eva Machek***** Vice President-Institutional Sales None
Bradley R. Maybury
Seattle, WA Vice President-Bank Wholesale None
Mary McCabe*** Vice President-Bank Wholesale None
James McNamara***** Vice President-Institutional Sales None
James Neiland* Vice President-Bank Wholesale- None
National Accounts Manager
Susan M. O'Connor* Vice President-Institutional
Seminars None
Andrew Pearson+++ Vice President-Institutional Sales None
Jean Heitzman Penny***** Vice President-Institutional Sales None
Dwight Pierce+ Vice President-Bank Wholesale None
Lorianne Pinto* Vice President-Bank Wholesale None
Douglas Rentschler
Grosse Point Park, MI Vice President-Bank Wholesale None
Leah Ryan**** Vice President-Institutional Sales None
Edward Sands* Vice President-Institutional
Administration None
William Schalda* Vice President-Institutional None
Administration
Sue Ann Seefeld++++ Vice President-Institutional Sales None
Brant Snavely
Charlotte, NC Vice President-Bank Wholesale None
Thomas Stallings
Richmond, VA Vice President-Institutional Sales None
Elizabeth Biordi Vice President-Institutional
Wieland* Administration None
Thomas Winnick
Malverne, PA Vice President-Bank Wholesale None
Jeanne Butler* Assistant Vice President-
Institutional Operations None
Roberta Hall***** Assistant Vice President-
Institutional Servicing None
Tracy Hopkins** Assistant Vice President-
Institutional Operations None
Lois Paterson* Assistant Vice President-
Institutional Operations None
Mary Rogers** Assistant Vice President-
Institutional Servicing None
Karen Markovic
Shpall++++++ Assistant Vice President None
Patrick Synan** Assistant Vice President-
Institutional Support None
Emilie Tongalson** Assistant Vice President-
Institutional Servicing None
Tonda Watson**** Assistant Vice President-
Institutional Sales None
Group Retirement Plans Division of Dreyfus Service Corporation
==============================================================
Positions and offices with Positions and
Name and principal Group Retirement Plans Division offices with
business address of Dreyfus Service Corporation Registrant
__________________ _______________________________ _____________
Elie M. Genadry* President Vice
President
Robert W. Stone* Executive Vice President None
Leonard Larrabee* Vice President and Senior Counsel None
George Anastasakos* Vice President None
Bart Ballinger++ Vice President-Sales None
Paula Cleary* Vice President-Marketing None
Ellen S. Dinas* Vice President-Marketing/Communications None
William Gallagher* Vice President-Sales None
Jeffrey Lejune
Dallas, TX Vice President-Sales None
Samuel Mancino** Vice President-Installation None
Joanna Morris* Vice President-Sales None
Joseph Pickert++ Vice President-Sales None
Alison Saunders** Vice President-Enrollment None
Scott Zeleznik* Vice President-Sales None
Alana Zion* Vice President-Sales None
Jeffrey Blake* Assistant Vice President-Sales None
_____________________________________________________
* The address of the offices so indicated is 200 Park Avenue, New
York, New York 10166
** The address of the offices so indicated is 144 Glenn Curtiss
Boulevard, Uniondale, New York 11556-0144.
*** The address of the offices so indicated is 580 California Street,
San Francisco, California 94104.
**** The address of the offices so indicated is 3384 Peachtree Road,
Suite 100, Atlanta, Georgia 30326-1106.
***** The address of the offices so indicated is 190 South LaSalle
Street, Suite 2850, Chicago, Illinois 60603.
+ The address of the offices so indicated is P.O. Box 1657, Duxbury,
Massachusetts 02331.
++ The address of the offices so indicated is 800 West Sixth Street,
Suite 1000, Los Angeles, California 90017.
+++ The address of the offices so indicated is 11 Berwick Lane,
Edgewood, Rhode Island 02905.
++++ The address of the offices so indicated is 1700 Lincoln Street,
Suite 3940, Denver, Colorado 80203.
+++++ The address of the offices so indicated is 6767 Forest Hill
Avenue, Richmond, Virginia 23225.
++++++ The address of the offices so indicated is 2117 Diamond Street,
San Diego, California 92109.
+++++++ The address of the offices so indicated is P.O. Box 757,
Holliston, Massachusetts 01746.
Item 30. Location of Accounts and Records
________________________________
1. The Shareholder Services Group, Inc.,
a subsidiary of First Data Corporation
P.O. Box 9671
Providence, Rhode Island 02940-9671
2. The Bank of New York
110 Washington Street
New York, New York 10286
3. The Dreyfus Corporation
200 Park Avenue
New York, New York 10166
Item 31. Management Services
_______ ___________________
Not Applicable
Item 32. Undertakings
________ ____________
(1) To call a meeting of shareholders for the purpose of voting upon
the question of removal of a trustee or trustees when requested
in writing to do so by the holders of at least 10% of the
Registrant's outstanding shares of beneficial interest and in
connection with such meeting to comply with the provisions of
Section 16(c) of the Investment Company Act of 1940 relating to
shareholder communications.
(2) To furnish each person to whom a prospectus is delivered with a
copy of its latest annual report to shareholders, upon request
and without charge.
SIGNATURES
---------------
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Amendment to the Registration
Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has
duly caused this Amendment to the Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of New
York, and State of New York on the 22nd day of July, 1994.
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
BY: /s/ Richard J. Moynihan*
___________________________________________
RICHARD J. MOYNIHAN, PRESIDENT
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, this Amendment to the Registration Statement
has been signed below by the following persons in the capacities and on the
dates indicated.
Signatures Title Date
__________________________ _______________________________ _______
/s/ Richard J. Moynihan* President (Principal Executive 7/22/94
______________________________ Officer) and Trustee
Richard J. Moynihan
/s/ John J. Pyburn* Treasurer (Principal Financial 7/22/94
______________________________ Officer)
John J. Pyburn
/s/ Gregory S. Gruber* Controller (Principal Accounting 7/22/94
______________________________ Officer)
Gregory S. Gruber
/s/ David W. Burke* Trustee 7/22/94
______________________________
David W. Burke
/s/ Samuel Chase* Trustee 7/22/94
______________________________
Samuel Chase
/s/ Joni Evans* Trustee 7/22/94
______________________________
Joni Evans
/s/ Lawrence M. Greene* Trustee 7/22/94
______________________________
Lawrence M. Greene
/s/ Arnold S. Hiatt* Trustee 7/22/94
______________________________
Arnold S. Hiatt
/s/ David J. Mahoney* Trustee 7/22/94
______________________________
David J. Mahoney
/s/ Burton N. Wallack* Trustee 7/22/94
______________________________
Burton N. Wallack
BY: __________________________ *
Mark N. Jacobs,
Attorney-in-Fact
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
EXHIBIT INDEX
Exhibit No.
24(b)(2) By-Laws
24(b)(11) Consent of Ernst & Young
24(b)(16) Schedule of Computation of Performance Data
BY-LAWS
OF
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
ARTICLE 1
Agreement and Declaration of Trust and Principal Office
1.1 Agreement and Declaration of Trust. These By-Laws shall be
subject to the Agreement and Declaration of Trust, as from time to time in
effect (the "Declaration of Trust"), of the above-captioned Massachusetts
business trust established by the Declaration of Trust (the "Trust").
1.2 Principal Office of the Trust. The principal office of the
Trust shall be located in New York, New York. Its resident agent in
Massachusetts shall be CT Corporation System, 2 Oliver Street, Boston,
Massachusetts, or such other person as the Trustees from time to time may
select.
ARTICLE 2
Meetings of Trustees
2.1 Regular Meetings. Regular meetings of the Trustees may be
held without call or notice at such places and at such times as the
Trustees from time to time may determine, provided that notice of the
first regular meeting following any such determination shall be given to
absent Trustees.
2.2 Special Meetings. Special meetings of the Trustees may be
held at any time and at any place designated in the call of the meeting
when called by the President or the Treasurer or by two or more Trustees,
sufficient notice thereof being given to each Trustee by the Secretary or
an Assistant Secretary or by the officer or the Trustees calling the
meeting.
2.3 Notice of Special Meetings. It shall be sufficient notice
to a Trustee of a special meeting to send notice by mail at least forty-
eight hours or by telegram at least twenty-four hours before the meeting
addressed to the Trustee at his or her usual or last known business or
residence address or to give notice to him or her in person or by
telephone at least twenty-four hours before the meeting. Notice of a
meeting need not be given to any Trustee if a written waiver of notice,
executed by him or her before or after the meeting, is filed with the
records of the meeting, or to any Trustee who attends the meeting without
protesting prior thereto or at its commencement the lack of notice to him
or her. Neither notice of a meeting nor a waiver of a notice need specify
the purposes of the meeting.
2.4 Notice of Certain Actions by Consent. If in accordance
with the provisions of the Declaration of Trust any action is taken by the
Trustees by a written consent of less than all of the Trustees, then
prompt notice of any such action shall be furnished to each Trustee who
did not execute such written consent, provided that the effectiveness of
such action shall not be impaired by any delay or failure to furnish such
notice.
ARTICLE 3
Officers
3.1 Enumeration; Qualification. The officers of the Trust
shall be a President, a Treasurer, a Secretary, and such other officers,
if any, as the Trustees from time to time may in their discretion elect.
The Trust also may have such agents as the Trustees from time to time may
in their discretion appoint. Officers may be but need not be a Trustee or
shareholder. Any two or more offices may be held by the same person.
3.2 Election. The President, the Treasurer and the Secretary
shall be elected by the Trustees upon the occurrence of any vacancy in any
such office. Other officers, if any, may be elected or appointed by the
Trustees at any time. Vacancies in any such other office may be filled at
any time.
3.3 Tenure. The President, Treasurer and Secretary shall hold
office in each case until he or she sooner dies, resigns, is removed or
becomes disqualified. Each other officer shall hold office and each agent
shall retain authority at the pleasure of the Trustees.
3.4 Powers. Subject to the other provisions of these By-Laws,
each officer shall have, in addition to the duties and powers herein and
in the Declaration of Trust set forth, such duties and powers as commonly
are incident to the office occupied by him or her as if the Trust were
organized as a Massachusetts business corporation or such other duties and
powers as the Trustees may from time to time designate.
3.5 President. Unless the Trustees otherwise provide, the
President shall preside at all meetings of the shareholders and of the
Trustees. Unless the Trustees otherwise provide, the President shall be
the chief executive officer.
3.6 Treasurer. The Treasurer shall be the chief financial and
accounting officer of the Trust, and, subject to the provisions of the
Declaration of Trust and to any arrangement made by the Trustees with a
custodian, investment adviser or manager, or transfer, shareholder
servicing or similar agent, shall be in charge of the valuable papers,
books of account and accounting records of the Trust, and shall have such
other duties and powers as may be designated from time to time by the
Trustees or by the President.
3.7 Secretary. The Secretary shall record all proceedings of
the shareholders and the Trustees in books to be kept therefor, which
books or a copy thereof shall be kept at the principal office of the
Trust. In the absence of the Secretary from any meeting of the
shareholders or Trustees, an Assistant Secretary, or if there be none or
if he or she is absent, a temporary Secretary chosen at such meeting shall
record the proceedings thereof in the aforesaid books.
3.8 Resignations and Removals. Any Trustee or officer may
resign at any time by written instrument signed by him or her and
delivered to the President or Secretary or to a meeting of the Trustees.
Such resignation shall be effective upon receipt unless specified to be
effective at some other time. The Trustees may remove any officer elected
by them with or without cause. Except to the extent expressly provided in
a written agreement with the Trust, no Trustee or officer resigning and no
officer removed shall have any right to any compensation for any period
following his or her resignation or removal, or any right to damages on
account of such removal.
ARTICLE 4
Committees
4.1 Appointment. The Trustees may appoint from their number an
executive committee and other committees. Except as the Trustees
otherwise may determine, any such committee may make rules for conduct of
its business.
4.2 Quorum; Voting. A majority of the members of any Committee
of the Trustees shall constitute a quorum for the transaction of business,
and any action of such a Committee may be taken at a meeting by a vote of
a majority of the members present (a quorum being present).
ARTICLE 5
Reports
The Trustees and officers shall render reports at the time and
in the manner required by the Declaration of Trust or any applicable law.
Officers and Committees shall render such additional reports as they may
deem desirable or as may from time to time be required by the Trustees.
ARTICLE 6
Fiscal Year
Except as from time to time otherwise provided by the Trustees,
the fiscal year of the Trust shall end on _____________ in each year.
ARTICLE 7
Seal
The seal of the Trust shall consist of a flat-faced die with the
word "Massachusetts," together with the name of the Trust and the year of
its organization cut or engraved thereon but, unless otherwise required by
the Trustees, the seal shall not be necessary to be placed on, and in its
absence shall not impair the validity of, any document, instrument or
other paper executed and delivered by or on behalf of the Trust.
ARTICLE 8
Execution of Papers
Except as the Trustees generally or in particular cases may
authorize the execution thereof in some other manner, all deeds, leases,
contracts, notes and other obligations made by the Trustees shall be
signed by the President, any Vice President, or by the Treasurer and need
not bear the seal of the Trust.
ARTICLE 9
Issuance of Share Certificates
9.1 Sale of Shares. Except as otherwise determined by the
Trustees, the Trust will issue and sell for cash or securities from time
to time, full and fractional shares of its shares of beneficial interest,
such shares to be issued and sold at a price of not less than net asset
value per share as from time to time determined in accordance with the
Declaration of Trust and these By-Laws and, in the case of fractional
shares, at a proportionate reduction in such price. In the case of shares
sold for securities, such securities shall be valued in accordance with
the provisions for determining value of assets of the Trust as stated in
the Declaration of Trust and these By-Laws. The officers of the Trust are
severally authorized to take all such actions as may be necessary or
desirable to carry out this Section 9.1.
9.2 Share Certificates. In lieu of issuing certificates for
shares, the Trustees or the transfer agent either may issue receipts
therefor or may keep accounts upon the books of the Trust for the record
holders of such shares, who shall in either case, for all purposes
hereunder, be deemed to be the holders of certificates for such shares as
if they had accepted such certificates and shall be held to have expressly
assented and agreed to the terms hereof.
The Trustees at any time may authorize the issuance of share
certificates. In that event, each shareholder shall be entitled to a
certificate stating the number of shares owned by him, in such form as
shall be prescribed from time to time by the Trustees. Such certificate
shall be signed by the President or Vice President and by the Treasurer or
Assistant Treasurer. Such signatures may be facsimile if the certificate
is signed by a transfer agent, or by a registrar, other than a Trustee,
officer or employee of the Trust. In case any officer who has signed or
whose facsimile signature has been placed on such certificate shall cease
to be such officer before such certificate is issued, it may be issued by
the Trust with the same effect as if he or she were such officer at the
time of its issue.
9.3 Loss of Certificates. The Trust, or if any transfer agent
is appointed for the Trust, the transfer agent with the approval of any
two officers of the Trust, is authorized to issue and countersign
replacement certificates for the shares of the Trust which have been lost,
stolen or destroyed subject to the deposit of a bond or other indemnity in
such form and with such security, if any, as the Trustees may require.
9.4 Discontinuance of Issuance of Certificates. The Trustees
at any time may discontinue the issuance of share certificates and by
written notice to each shareholder, may require the surrender of share
certificates to the Trust for cancellation. Such surrender and
cancellation shall not affect the ownership of shares in the Trust.
ARTICLE 10
Indemnification
10.1 Trustees, Officers, etc. The Trust shall indemnify each of
its Trustees and officers (including persons who serve at the Trust's
request as directors, officers or trustees of another organization in
which the Trust has any interest as a shareholder, creditor or otherwise)
(hereinafter referred to as a "Covered Person") against all liabilities
and expenses, including but not limited to amounts paid in satisfaction of
judgments, in compromise or as fines and penalties, and counsel fees
reasonably incurred by any Covered Person in connection with the defense
or disposition of any action, suit or other proceeding, whether civil or
criminal, before any court or administrative or legislative body, in which
such Covered Person may be or may have been involved as a party or
otherwise or with which such person may be or may have been threatened,
while in office or thereafter, by reason of being or having been such a
Trustee or officer, except with respect to any matter as to which such
Covered Person shall have been finally adjudicated in a decision on the
merits in any such action, suit or other proceeding not to have acted in
good faith in the reasonable belief that such Covered Person's action was
in the best interests of the Trust and except that no Covered Person shall
be indemnified against any liability to the Trust or its Shareholders to
which such Covered Person would otherwise be subject by reason of wilful
misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of such Covered Person's office. Expenses,
including counsel fees so incurred by any such Covered Person (but
excluding amounts paid in satisfaction of judgments, in compromise or as
fines or penalties), may be paid from time to time by the Trust in advance
of the final disposition or any such action, suit or proceeding upon
receipt of an undertaking by or on behalf of such Covered Person to repay
amounts so paid to the Trust if it is ultimately determined that
indemnification of such expenses is not authorized under this Article,
provided that (a) such Covered Person shall provide security for his
undertaking, (b) the Trust shall be insured against losses arising by
reason of such Covered Person's failure to fulfill his undertaking, or (c)
a majority of the Trustees who are disinterested persons and who are not
Interested Persons (as that term is defined in the Investment Company Act
of 1940) (provided that a majority of such Trustees then in office act on
the matter), or independent legal counsel in a written opinion, shall
determine, based on a review of readily available facts (but not a full
trial-type inquiry), that there is reason to believe such Covered Person
ultimately will be entitled to indemnification.
10.2 Compromise Payment. As to any matter disposed of (whether
by a compromise payment, pursuant to a consent decree or otherwise)
without an adjudication in a decision on the merits by a court, or by any
other body before which the proceeding was brought, that such Covered
Person either (a) did not act in good faith in the reasonable belief that
such Covered Person's action was in the best interests of the Trust or (b)
is liable to the Trust or its Shareholders by reason of wilful
misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of such Covered Person's office,
indemnification shall be provided if (a) approved as in the best interest
of the Trust, after notice that it involves such indemnification, by at
least a majority of the Trustees who are disinterested persons and are not
Interested Persons (provided that a majority of such Trustees then in
office act on the matter), upon a determination, based upon a review of
readily available facts (but not a full trial-type inquiry) that such
Covered Person acted in good faith in the reasonable belief that such
Covered Person's action was in the best interests of the Trust and is not
liable to the Trust or its Shareholders by reason of wilful misfeasance,
bad faith, gross negligence or reckless disregard of the duties involved
in the conduct of such Covered Person's office, or (b) there has been
obtained an opinion in writing of independent legal counsel, based upon a
review of readily available facts (but not a full trial-type inquiry) to
the effect that such Covered Person appears to have acted in good faith in
the reasonable belief that such Covered Person's action was in the best
interests of the Trust and that such indemnification would not protect
such Covered Person against any liability to the Trust to which such
Covered Person would otherwise be subject by reason of wilful misfeasance,
bad faith, gross negligence or reckless disregard of the duties involved
in the conduct of his office. Any approval pursuant to this Section
shall not prevent the recovery from any Covered Person of any amount paid
to such Covered Person in accordance with this Section as indemnification
if such Covered Person is subsequently adjudicated by a court of competent
jurisdiction not to have acted in good faith in the reasonable belief that
such Covered Person's action was in the best interests of the Trust or to
have been liable to the Trust or its Shareholders by reason of wilful
misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of such Covered Person's office.
10.3 Indemnification Not Exclusive. The right of
indemnification hereby provided shall not be exclusive of or affect any
other rights to which any such Covered Person may be entitled. As used in
this Article 10, the term "Covered Person" shall include such person's
heirs, executors and administrators, and a "disinterested person" is a
person against whom none of the actions, suits or other proceedings in
question or another action, suit, or other proceeding on the same or
similar grounds is then or has been pending. Nothing contained in this
article shall affect any rights to indemnification to which personnel of
the Trust, other than Trustees and officers, and other persons may be
entitled by contract or otherwise under law, nor the power of the Trust to
purchase and maintain liability insurance on behalf of such person.
10.4 Limitation: Notwithstanding any provisions in the
Declaration of Trust and these By-Laws pertaining to indemnification, all
such provisions are limited by the following undertaking set forth in the
rules promulgated by the Securities and Exchange Commission:
In the event that a claim for indemnification is
asserted by a Trustee, officer or controlling person of
the Trust in connection with the registered securities of
the Trust, the Trust will not make such indemnification
unless (i) the Trust has submitted, before a court or
other body, the question of whether the person to be
indemnified was liable by reason of wilful misfeasance,
bad faith, gross negligence, or reckless disregard of
duties, and has obtained a final decision on the merits
that such person was not liable by reason of such conduct
or (ii) in the absence of such decision, the Trust shall
have obtained a reasonable determination, based upon a
review of the facts, that such person was not liable by
virtue of such conduct, by (a) the vote of a majority of
Trustees who are neither interested persons as such term
is defined in the Investment Company Act of 1940, nor
parties to the proceeding or (b) an independent legal
counsel in a written opinion.
The Trust will not advance attorneys' fees or other
expenses incurred by the person to be indemnified unless
the Trust shall have (i) received an undertaking by or on
behalf of such person to repay the advance unless it is
ultimately determined that such person is entitled to
indemnification and one of the following conditions shall
have occurred: (x) such person shall provide security for
his undertaking, (y) the Trust shall be insured against
losses arising by reason of any lawful advances or (z) a
majority of the disinterested, non-party Trustees of the
Trust, or an independent legal counsel in a written
opinion, shall have determined that based on a review of
readily available facts there is reason to believe that
such person ultimately will be found entitled to
indemnification.
ARTICLE 11
Shareholders
11.1 Meetings. A meeting of the shareholders shall be called by
the Secretary whenever ordered by the Trustees, or requested in writing by
the holder or holders of at least 10% of the outstanding shares entitled
to vote at such meeting. If the meeting is a meeting of the shareholders
of one or more series of shares, but not a meeting of all shareholders of
the Trust, then only the shareholders of such one or more series shall be
entitled to notice of and to vote at the meeting. If the Secretary, when
so ordered or requested, refuses or neglects for more than five days to
call such meeting, the Trustees, or the shareholders so requesting may, in
the name of the Secretary, call the meeting by giving notice thereof in
the manner required when notice is given by the Secretary.
11.2 Access to Shareholder List. Shareholders of record may
apply to the Trustees for assistance in communicating with other
shareholders for the purpose of calling a meeting in order to vote upon
the question of removal of a Trustee. When ten or more shareholders of
record who have been such for at least six months preceding the date of
application and who hold in the aggregate shares having a net asset value
of at least $25,000 or at least 1% of the outstanding shares, whichever is
less, so apply, the Trustees shall within five business days either:
(i) afford to such applicants access to a list of names
and addresses of all shareholders as recorded on the books of the Trust;
or
(ii) inform such applicants of the approximate number of
shareholders of record and the approximate cost of mailing material to
them and, within a reasonable time thereafter, mail, at the applicants'
expense, materials submitted by the applicants, to all such shareholders
of record. The Trustees shall not be obligated to mail materials which
they believe to be misleading or in violation of applicable law.
11.3 Record Dates. For the purpose of determining the
shareholders of any series who are entitled to vote or act at any meeting
or any adjournment thereof, or who are entitled to receive payment of any
dividend or of any other distribution, the Trustees from time to time may
fix a time, which shall be not more than 90 days before the date of any
meeting of shareholders or the date of payment of any dividend or of any
other distribution, as the record date for determining the shareholders of
such series having the right to notice of and to vote at such meeting and
any adjournment thereof or the right to receive such dividend or
distribution, and in such case only shareholders of record on such record
date shall have such right notwithstanding any transfer of shares on the
books of the Trust after the record date; or without fixing such record
date the Trustees may for any such purposes close the register or transfer
books for all or part of such period.
11.4 Place of Meetings. All meetings of the shareholders shall
be held at the principal office of the Trust or at such other place within
the United States as shall be designated by the Trustees or the President
of the Trust.
11.5 Notice of Meetings. A written notice of each meeting of
shareholders, stating the place, date and hour and the purposes of the
meeting, shall be given at least ten days before the meeting to each
shareholder entitled to vote thereat by leaving such notice with him or at
his residence or usual place of business or by mailing it, postage
prepaid, and addressed to such shareholder at his address as it appears in
the records of the Trust. Such notice shall be given by the Secretary or
an Assistant Secretary or by an officer designated by the Trustees. No
notice of any meeting of shareholders need be given to a shareholder if a
written waiver of notice, executed before or after the meeting by such
shareholder or his attorney thereunto duly authorized, is filed with the
records of the meeting.
11.6 Ballots. No ballot shall be required for any election
unless requested by a shareholder present or represented at the meeting
and entitled to vote in the election.
11.7 Proxies. Shareholders entitled to vote may vote either in
person or by proxy in writing dated not more than six months before the
meeting named therein, which proxies shall be filed with the Secretary or
other person responsible to record the proceedings of the meeting before
being voted. Unless otherwise specifically limited by their terms, such
proxies shall entitle the holders thereof to vote at any adjournment of
such meeting but shall not be valid after the final adjournment of such
meeting.
ARTICLE 12
Amendments to the By-Laws
These By-Laws may be amended or repealed, in whole or in part,
by a majority of the Trustees then in office at any meeting of the
Trustees, or by one or more writings signed by such a majority.
Dated: ___________, 1987
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the captions "Condensed
Financial Information" and "Custodian, Transfer and Dividend Disbursing
Agent, Counsel and Independent Auditors" and to the use of our report
dated June 27, 1994, in this Registration Statement (Form N-1A 33-14295)
of Dreyfus New York Tax Exempt Intermediate Bond Fund.
ERNST & YOUNG
New York, New York
July 19, 1994
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
AVERAGE ANNUAL TOTAL RETURN COMPUTATION
Average annual total return computation from inception through 5/31/94
based upon the following formula:
n
P( 1 + T ) = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value as of 5/31/94 of a $1,000
hypothetical investment made on 6/12/87 (inception)
6.970
1000( 1 + T ) = 1,664.62
T = 7.59%
==========
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
TOTAL RETURN COMPUTATION
Total return computation from inception through 5/31/94
based upon the following formula:
[ C + ( C x B ) ] - A
---------------------
T = A
where: A = NAV at beginning of period
B = Additional shares purchased through dividend reinvestment
C = NAV at end of period
T = Total return
T = [ 17.71 + ( 17.71 x 0.5509 ) ] - 16.50
--------------------------------------------
16.50
T = 66.46%
========
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
SEC 30 DAY YIELD CALCULATION
INCOME 5/2/94 - 5/31/94 $1,836,425.20
EXPENSES 5/2/94 - 5/31/94 $330,846.84
Average Shares Entitled to Dividend
5/2/94 - 5/31/94 22,129,170.124
NAV per share 5/31/94 $17.71
x = 1,836,425.20 - 330,846.84
------------------------------------------
22,129,170.124 x 17.71
x = 0.003842
6
30 Day yield = 2 [( 1 + x) -1]
6
30 Day yield = 2 [ ( 1 + 0.003842 ) -1]
30 Day yield = 4.65%
=================
TAX EQUIVALENT YIELD
Taxable portion of yield = 0.00%
Tax exempt portion of yield = 4.65%
----------------
Yield = 4.65%
================
Federal, State & City Combined Tax Rate = 47.05%
================
4.65
Tax Equivalent Yield = -------------------- = 8.78%
( 1 - 0.4705 ) ================
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
AVERAGE ANNUAL TOTAL RETURN COMPUTATION
Average annual total return computation from 5/31/93 through 5/31/94
based upon the following formula:
n
P( 1 + T ) = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value as of 5/31/94 of a $1,000
hypothetical investment made on 5/31/93
1.00
1000( 1 + T ) = 1,031.13
T = 3.11%
============
DREYFUS NEW YORK TAX EXEMPT INTERMEDIATE BOND FUND
AVERAGE ANNUAL TOTAL RETURN COMPUTATION
Average annual total return computation from 5/31/89 through 5/31/94
based upon the following formula:
n
P( 1 + T ) = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value as of 5/31/94 of a $1,000
hypothetical investment made on 5/31/89
5.00
1000( 1 + T ) = 1,458.29
T = 7.84%
============
