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Prudential Institutional Liquidity Portfolio, Inc.
Institutional Money Market Series
Class A shares
Class I shares
Supplement dated January 16, 1998
to Prospectus dated July 9, 1997
The following information supplements the cover page and 'Fund Highlights' in
the Class A and Class I Prospectuses:
Shares of Prudential Institutional Liquidity Portfolio, Inc. are also
available to corporate participants in the COMMANDSM Account program (the
COMMAND Program), which is available through Prudential Securities Incorporated,
and participants in the Prudential BusinessEdgeSM Account Program (the
BusinessEdge Program), which is available through either Prudential Securities
Incorporated or Pruco Securities Corporation.
The following information supplements the 'Fund Expenses' in the Prospectuses:
The Sections entitled 'Shareholder Transaction Expenses' and 'Annual Fund
Operating Expenses' are supplemented to disclose that the COMMAND Program
charges corporate participants a maximum annual fee of $125** and the
BusinessEdge Program charges participants a maximum annual fee of $250**.
** In accordance with an interpretive position taken by the staff of the
Securities and Exchange Commission, the annual program fee is deemed to be
reflected in the fee table in the Prospectuses. The annual program fee as a
percentage of average net assets is calculated by dividing $125 (the total fee
for the COMMAND Program) or $250 (the total for the BusinessEdge Program),
respectively, by the average account size in the Fund. The annual program fee is
not prorated for purposes of this calculation to give effect to COMMAND Program
or BusinessEdge Program participants who also own shares in or subscribe to
various services offered by the respective Program. A major portion of the
annual program fee is not attributable to the Fund, but rather to non-fund
services provided by the program.
The Section of the Prospectuses entitled 'SHAREHOLDER GUIDE' is amended to
describe how shareholders participating in the COMMAND Program or the
BusinessEdge Program may redeem shares of the Fund:
The Sections entitled 'HOW TO BUY SHARES OF THE FUND' and 'HOW TO SELL YOUR
SHARES' are supplemented to provide that purchase and sell orders must be made
by COMMAND Program participants to their Prudential Securities Financial
Advisor, or by BusinessEdge Program participants to their Prudential Securities
Financial Advisor or Pruco Securities broker, by 2:00 P.M., New York time.
The Section entitled 'HOW TO SELL YOUR SHARES' is further supplemented to
add the following disclosure:
Automatic Redemption. Redemptions will be automatically effected by
Prudential Securities to satisfy debit balances arising under the COMMAND
Program or the BusinessEdge Program, such as those incurred by use of the
Visa(R) Gold Debit Card Account (for COMMAND Program) or the BusinessEdge
Visa(R) Debit Card Account (for BusinessEdge Program), including ATM
transaction purchases, cash advances and COMMAND Program or BusinessEdge
Program Account checks. The COMMAND Program or BusinessEdge Program Securities
Account will be automatically scanned for debits each business day as of the
close of business on that day. After application of any free credit cash
balances in the account to such debits, a sufficient number of shares of the
mutual fund selected by the participant that he or she has designated as his or
her primary fund for the investment of free credit cash balances (the Primary
Fund) will be redeemed as of that business day to satisfy any remaining debits
in the Securities Account and, if necessary, shares of other COMMAND Program
or BusinessEdge Program Account Funds, as applicable, owned by the Program
participant which have not been selected as his or her Primary Fund or shares
of a participant's money market funds managed by PMF which are not Primary
Funds will be redeemed to satisfy debits in the Securities Account. Margin
loans, if available and selected under a Program, will be utilized to satisfy
debits remaining after the liquidation of all fund shares in a Securities
Account, and shares may not be purchased until all debits, margin loans and
other requirements in the Securities Account are satisfied. In the event of an
automatic redemption of shares, the participant will be entitled to dividends
declared on the redeemed shares through the
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business day preceding the day on which the redemption is effective.
Participants will not be entitled to dividends declared on the date of
redemption.
Manual Redemption. A shareholder investing through the COMMAND Program or
the BusinessEdge Program may redeem shares of the Fund by submitting a written
request for redemption directly to Prudential Securities or by calling his or
her Prudential Securities Financial Advisor or Pruco Securities broker, as
applicable, who will submit the request to the Fund's Transfer Agent. The
proceeds from a manual redemption will immediately become free credit cash
balances in the participant's Program Securities Account and will be
automatically invested in the Primary Fund selected as the participant's Primary
Fund. Redemption requests should not be sent to the Transfer Agent. If
inadvertently sent to the Transfer Agent, they will be forwarded to Prudential
Securities. The COMMAND Program and the BusinessEdge Program require the written
request to be signed by all persons in whose names the shares are registered,
exactly as their names appear on the Program Account Client Statement. In
certain instances, additional documents such as, but not limited to, trust
instruments, death certificates, appointments as executor or administrator or
certificates of corporate authority may be required.
Under the COMMAND Program, Prudential Securities has the right to terminate
a Program Securities Account for any reason. Likewise, Prudential Securities or
Pruco Securities has the right to terminate a BusinessEdge Program Securities
Account for any reason. In either such event, all shares held in a shareholder's
account will be redeemed.
The remaining provisions of the Sections entitled 'HOW TO BUY SHARES OF THE
FUND' and 'HOW TO SELL YOUR SHARES' are equally applicable to participants in
either the COMMAND Program or the BusinessEdge Program, and other purchasers of
Fund shares.
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