File No. 33-19655
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 JERSEY MUNICIPAL BOND FUND, INC.
(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)
----
on (date) pursuant to paragraph (b)
----
60 days after filing pursuant to paragraph (a)(i)
----
X on April 28, 1995 pursuant to paragraph (a)(i)
----
75 days after filing pursuant to paragraph (a)(ii)
----
on (date) pursuant to paragraph (a)(ii) of Rule 485
----
If appropriate, check the following box:
this post-effective amendment designates a new
effective
date for a
previously filed post-effective amendment.
----
Registrant has registered an indefinite number of shares of
its common stock 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
December 31, 1994 was filed on or about February 24, 1995.
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
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 4
4 General Description of Registrant 4, 24
5 Management of the Fund 13
5(a) Management's Discussion of Fund's
Performance *
6 Capital Stock and Other Securities 24
7 Purchase of Securities Being Offered 14
8 Redemption or Repurchase 18
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 B-23
13 Investment Objectives and Policies B-2
14 Management of the Fund B-9
15 Control Persons and Principal B-12
Holders of Securities
16 Investment Advisory and Other B-13
Services
_____________________________________
NOTE: * Omitted since answer is negative or inapplicable.<PAGE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
Cross-Reference Sheet Pursuant to Rule 495(a) (continued)
Items in
Part B of
Form N-1A Caption
Page
_________ _______ _____
17 Brokerage Allocation B-21
18 Capital Stock and Other Securities B-23
19 Purchase, Redemption and Pricing B-14,
of Securities Being Offered B-16,
B-20
20 Tax Status *
21 Underwriters B-14
22 Calculations of Performance Data B-22
23 Financial Statements B-36
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-29
30 Location of Accounts and Records C-38
31 Management Services C-38
32 Undertakings C-38
_____________________________________
NOTE: * Omitted since answer is negative or inapplicable.
<PAGE>
PROSPECTUS May 1, 1995
Dreyfus New Jersey Municipal Bond Fund, Inc.
Dreyfus New Jersey Municipal Bond Fund, Inc. (the "Fund")
is an open-end, non-diversified, management investment company,
known as a municipal bond fund. Its goal is to provide you with
as high a level of current income exempt from Federal and New
Jersey income taxes as is consistent with the preservation of
capital.
You can invest, reinvest or redeem shares at any time
without charge or penalty imposed by the Fund.
The 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 the Fund's
portfolio.
The Fund bears certain costs of advertising, administration
and/or distribution pursuant to a plan adopted in accordance
with Rule 12b-1 under the Investment Company Act of 1940.
This Prospectus sets forth concisely information about the
Fund that you should know before investing. It should be read
and retained for future reference.
The Statement of Additional Information, dated May 1,
1995, 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 the Fund 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 funds of this type fluctuate from time to time.
TABLE OF CONTENTS
Annual Fund Operating Expenses 3
Condensed Financial Information 4
Description of the Fund 4
Management of the Fund 13
How to Buy Fund Shares 14
Shareholder Services 15
How to Redeem Fund Shares 18
Service Plan 21
Dividends, Distributions and Taxes 21
Performance Information 23
General Information 24
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.
<PAGE>
[This Page Intentionally Left Blank]
<PAGE>
Annual Fund Operating Expenses
(as a percentage of average daily net assets)
Management Fees .60%
12b-1 Fee (distribution and servicing) .25%
Other Expenses .12%
Total Fund Operating Expenses .97%
Example: 1 Year 3 Years 5 Years 10 Years
You would pay the
following expenses on
a $1,000 investment,
assuming (1) 5%
annual return and (2)
redemption at the
end of each time period: $10 $31 $54 $119
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, the 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 the Fund,
and therefore indirectly by investors, the payment of which will
reduce investors' return on an annual basis. Long-term investors
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
direct fees for effecting transactions in Fund shares; such fees
are not reflected in the foregoing table. See "Management of the
Fund" and "Service Plan."
Condensed Financial Information
The information in the following table has been audited by
Ernst & Young LLP, the Fund's independent auditors, whose report
thereon appears 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
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 the
Fund's financial statements.
<TABLE>
<CAPTION>
Year Ended December 31,
PER SHARE DATA: 1987(1) 1988 1989 1990 1991 1992 1993 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $11.50 $11.62 $12.16 $12.36 $12.47 $13.06 $13.17 $14.03
Investment Operations:
Investment income-ne .14 .88 .83 .83 .81 .80 .79 .78
Net realized and
unrealized gain on
investments .12 .54 .24 .11 .63 .31 .88 (1.61)
Total from Investment
Operations .26 1.42 1.07 .94 1.44 1.11 1.67 (.83)
Distributions:
Dividends from
investment income-net (.14) (.88) (.83) (.83) (.81) (.80) (.79) (.77)
Dividends from net
realized gain on
investments .__ .__ (.04) .__ (.04) (.20) (.02) .__
Total Distributions (.14) (.88) (.87) (.83) (.85) (1.00) (.81) (.79)
Net asset value, end of
year $11.62 $12.16 $12.36 $12.47 $13.06 $13.17 $14.03 $12.41
TOTAL INVESTMENT RETURN 14.73%(2) 12.59% 9.11% 7.94% 11.95% 8.77% 12.97% (6.02%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating
expenses to
average net assets .__ .39% .82% .77% .75% .73% .72% .77%
Ratio of net investment
income to average
net assets 8.02%(2) 7.36% 6.77% 6.74% 6.36% 6.06% 5.74% 5.94%
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) .91% .25% .25% .25% .25% .25% .20%
Portfolio Turnover Rate .__ 60.77% 34.96% 25.02% 22.53% 33.58% 6.05% 10.02%
Net Assets, end of year
(000's Omitted) $37,743 $174,788 $256,902 $350,416 $515,706 $614,529 $725,815 $577,525
</TABLE>
(1) From November 6, 1987 (commencement of operations) to
December 31, 1987.
(2) Annualized.
Further information about the Fund's performance is
contained in the Fund's annual report, which may be obtained
without charge by writing to the address or calling the number
set forth on the cover page of this Prospectus.
DESCRIPTION OF THE FUND
INVESTMENT OBJECTIVE - The Fund's goal is to provide you with as
high a level of current income exempt from Federal and New
Jersey income taxes as is consistent with the preservation of
capital. To accomplish this goal, the Fund invests primarily in
the debt securities of the State of New Jersey, its political
subdivisions, authorities and corporations, and certain other
specified securities, the interest from which is, in the opinion
of bond counsel to the issuer, exempt from Federal and New
Jersey income taxes (collectively, "New Jersey Municipal
Obligations"). To the extent acceptable New Jersey Municipal
Obligations are at any time unavailable for investment by the
Fund, the Fund may 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 Jersey, income tax.
The dollar-weighted average maturity of the Fund's portfolio is
expected to exceed ten years. The 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 the Fund's
outstanding voting shares. There can be no assurance that the
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 and 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 bear fixed, floating or variable rates of interest,
which are determined in some instances by formulas under which
the Municipal Obligation's interest 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 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 the Fund
that it will invest at least 80% of the value of its net assets
(except when maintaining a temporary defensive position) in
Municipal Obligations. At least 65% of the value of the Fund's
net assets (except when maintaining a temporary defensive
position) will be invested in bonds, debentures and other debt
instruments. Generally, at least 65% of the value of the Fund's
net assets will be invested in New Jersey Municipal Obligations
and the remainder may be invested in securities that are not New
Jersey Municipal Obligations and therefore may be subject to New
Jersey income tax. See "Risk Factors _ Investing in New Jersey
Municipal Obligations" below, and "Dividends, Distributions and
Taxes."
At least 80% of the value of the Fund's net assets must
consist of Municipal Obligations which, in the case of bonds,
are rated no lower than Baa by Moody's Investors Service, Inc.
("Moody's") or BBB by Standard & Poor's Corporation ("S&P") or
Fitch Investors Service, Inc. ("Fitch"). The 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. The 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 normally provide higher yields but involve greater
risk because of their speculative characteristics. The 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 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. The 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 the Fund may invest; for purposes of the 80%
requirement described above, such unrated securities shall be
deemed to have the rating so determined. The Fund also may
invest in Taxable Investments of the quality described below.
The 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,
the Fund may be subject to greater risk as compared to a fund
that does not follow this practice.
From time to time, the 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. The
Fund may invest without limitation in such Municipal Obligations
if The Dreyfus Corporation determines that their purchase is
consistent with the Fund's investment objective. See "Risk
Factors _ Other Investment Considerations" below.
The Fund may purchase floating and variable rate demand
notes and bonds, which are tax exempt obligations ordinarily
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. Variable rate demand notes include master
demand notes which are obligations that permit the Fund to
invest fluctuating amounts at varying rates of interest,
pursuant to direct arrangements between the Fund, as lender, and
the borrower. These obligations permit daily changes in the
amount borrowed. 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 generally will be traded, and
there generally is no established secondary market for these
obligations, although they are redeemable at face value, plus
accrued interest. 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 the Fund will meet the quality
criteria established for the purchase of Municipal Obligations.
The Dreyfus Corporation, on behalf of the 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.
The 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 the Fund an
undivided interest in the Municipal Obligation in the proportion
that the Fund's participation interest bears to the total
principal amount of the Municipal Obligation. These instruments
may have fixed, floating or variable rates of interest. If the
participation interest is unrated, the participation interest
will be backed by an irrevocable letter of credit or guarantee
of a bank that the Board of Directors 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, the 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.
The 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 the Fund should increase the volatility of its
net asset value and, thus, its price per share. These custodial
receipts are sold in private placements. The 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
multiclass offering and the interest rate on certain classes may
be subject to a cap or floor.
The 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 notice. As to these securities, the
Fund is subject to a risk that should the Fund desire to sell
them when a ready buyer is not available at a price that the
Fund deems representative of their value, the value of the
Fund's net assets could be adversely affected.
To the extent consistent with the requirements for a
"qualified investment fund" under the New Jersey gross income
tax, the 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. The Fund will acquire stand-by commitments
solely to facilitate its portfolio liquidity and does not intend
to exercise its rights thereunder for trading purposes. The 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. Gains realized in connection with
stand-by commitments will be taxable. The Fund also may acquire
call options on specific Municipal Obligations. The Fund
generally would purchase these call options to protect the Fund
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 the Fund of a
call option that it owns on a specific Municipal Obligation
could result in the receipt of taxable income by the Fund.
The 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. The 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.
The 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 Fund, 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.
From time to time, on a temporary basis other than for
temporary defensive purposes (but not to exceed 20% of the value
of the Fund's net assets) or for temporary defensive purposes,
the Fund may invest in taxable short-term investments ("Taxable
Investments") consisting of: notes of 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 the 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 the
Fund's net assets be invested in Taxable Investments. When the
Fund has adopted a temporary defensive position, including when
acceptable New Jersey Municipal Obligations are unavailable for
investment by the Fund, in excess of 35% of the Fund's net
assets may be invested in securities that are not exempt from
New Jersey income tax. Under normal market conditions, the 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.
From time to time, the 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 the 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. The Fund can
increase its income through the investment of such collateral.
The 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. The
Fund might experience risk of loss if the institution with which
it has engaged in a portfolio loan transaction breaches its
agreement with the Fund.
As a fundamental policy, the Fund is permitted to borrow to
the extent permitted under the Investment Company Act of 1940.
However, the Fund currently intends to borrow money only 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) 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 Fund's
total assets, the Fund will not make any additional investments.
CERTAIN FUNDAMENTAL POLICIES - The Fund may: (i) borrow money to
the extent permitted under the Investment Company Act of 1940,
which currently limits borrowing to no more than 331/3% of the
value of the Fund's total assets; and (ii) invest up to 25% of
its total assets in the securities of issuers in any industry,
provided that there is no such limitation on investments in
Municipal Obligations and, for temporary defensive purposes,
obligations issued or guaranteed by the U.S. Government, its
agencies or instrumentalities. This paragraph describes
fundamental policies that cannot be changed without approval by
the holders of a majority (as defined in the Investment Company
Act of 1940) of the Fund's outstanding voting shares. See
"Investment Objective and Management Policies _ Investment
Restrictions" in the Statement of Additional Information.
CERTAIN ADDITIONAL NON-FUNDAMENTAL POLICIES - The 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 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).
See "Investment Objective and Management Policies _ Investment
Restrictions" in the Statement of Additional Information.
RISK FACTORS
INVESTING IN NEW JERSEY MUNICIPAL OBLIGATIONS - You should
consider carefully the special risks inherent in the Fund's
investment in New Jersey Municipal Obligations. If there should
be a default or other financial crisis relating to the State of
New Jersey or an agency or municipality thereof, the market
value and marketability of outstanding New Jersey Municipal
Obligations in the Fund's portfolio and interest income to the
Fund could be adversely affected. Although New Jersey enjoyed a
period of economic growth with unemployment levels below the
national average during the mid-1980s, its economy slowed down
well before the onset of the national recession, which,
according to the National Bureau of Economic Research, began in
July 1990. Reflecting the economic downturn, the State's
unemployment rate rose from a low of 3.6% in the first quarter
of 1989 to a recessionary peak of 9.3% during 1992. Since then,
the State's unemployment rate fell to 6.7% during the fourth
quarter of 1993 and averaged 7.1% during the first nine months
of 1994. As a result of New Jersey's fiscal weakness, in July
1991, S&P lowered its rating of the State's general obligation
debt from AAA to AA+. You should obtain and review a copy of the
Statement of Additional Information which more fully sets forth
these and other risk factors.
LOWER RATED BONDS - You should carefully consider the relative
risks of investing in the higher yielding (and, therefore,
higher risk) securities in which the Fund may invest up to 20%
of the value of its net assets. 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 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 Municipal Obligations, 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 Fund's ability 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 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
the 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 Fund to sell certain securities or could result
in lower prices than those used in calculating the Fund's net
asset value.
The Fund may invest up to 5% 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 the 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 Fund's net asset value generally will not be
stable and should fluctuate based upon changes in the value of
the Fund's portfolio securities. Securities in which the Fund
will 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 the Fund enters into
the commitment. The 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 Fund 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 if more than 20% of the value of the Fund's net
assets would be so committed.
Municipal Obligations purchased on a when-issued basis and
the securities held in the 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
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. A segregated account of
the Fund 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 commitments
will be established and maintained at the Fund's custodian bank.
Purchasing Municipal Obligations on a when-issued basis when the
Fund is fully or almost fully invested may result in greater
potential fluctuation in the value of the Fund's net assets and
its net asset value per share.
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,
the 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 municipal lease/purchase obligations in which the
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.
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 Fund and thus reduce
available yield. Shareholders should consult their tax advisers
concerning the effect of these provisions on an investment in
the 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 the Fund so as to adversely affect Fund
shareholders, the Fund would reevaluate its investment objective
and policies and submit possible changes in the Fund's structure
to shareholders for their consideration. If legislation were
enacted that would treat a type of Municipal Obligation as
taxable, the Fund would treat such security as a permissible
Taxable Investment within the applicable limits set forth
herein.
The Fund's classification 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, the 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
its total assets 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 the Fund's assets may be invested in the
obligations of a limited number of issuers, the Fund's 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 the Fund are made independently
from those of other investment companies advised by The Dreyfus
Corporation. However, if such other investment companies are
prepared to invest in, or desire to dispose of, Municipal
Obligations or Taxable Investments at the same time as the Fund,
available investments or opportunities for sales will be
allocated equitably to each investment company. In some cases,
this procedure may adversely affect the size of the position
obtained for or disposed of by the Fund or the price paid or
received by the Fund.
MANAGEMENT OF THE FUND
The Dreyfus Corporation, located at 200 Park Avenue, New
York, New York 10166, was formed in 1947 and serves as the
Fund's investment adviser. The Dreyfus Corporation is a
wholly-owned subsidiary of Mellon Bank, N.A., which is a
wholly-owned subsidiary of Mellon Bank Corporation ("Mellon").
As of December 31, 1994, The Dreyfus Corporation managed or
administered approximately $70 billion in assets for more than
1.9 million investor accounts nationwide.
The Dreyfus Corporation supervises and assists in the
overall management of the Fund's affairs under a Management
Agreement with the Fund, subject to the overall authority of the
Fund's Board of Directors in accordance with Maryland law. The
Fund's primary portfolio manager is Samuel J. Weinstock. He has
held that position since August 31, 1988 and has been employed
by The Dreyfus Corporation since 1987. The Fund's other
portfolio managers are identified under "Management of the Fund"
in the Fund's Statement of Additional Information. The Dreyfus
Corporation also provides research services for the Fund as well
as for other funds advised by The Dreyfus Corporation through a
professional staff of portfolio managers and securities
analysts.
Mellon is a publicly owned multibank holding company
incorporated under Pennsylvania law in 1971 and registered under
the Federal Bank Holding Company Act of 1956, as amended. Mellon
provides a comprehensive range of financial products and
services in domestic and selected international markets. Mellon
is among the twenty-five largest bank holding companies in the
United States based on total assets. Mellon's principal
wholly-owned subsidiaries are Mellon Bank, N.A., Mellon Bank
(DE) National Association, Mellon Bank (MD), The Boston Company,
Inc., AFCO Credit Corporation and a number of companies known as
Mellon Financial Services Corporations. Through its
subsidiaries, including The Dreyfus Corporation, Mellon managed
approximately $193 billion in assets as of December 31, 1994,
including approximately $70 billion in mutual fund assets. As of
December 31, 1994, Mellon, through various subsidiaries,
provided non-investment services, such as custodial and
administration services, for approximately $654 billion in
assets, including approximately $74 billion in mutual fund
assets.
For the fiscal year ended December 31, 1994, the Fund paid
The Dreyfus Corporation a monthly management fee at the annual
rate of .60 of 1% of the value of the Fund's average daily net
assets. From time to time, The Dreyfus Corporation may waive
receipt of its fees and/or voluntarily assume certain expenses
of the Fund, which would have the effect of lowering the overall
expense ratio of the Fund and increasing yield to investors at
the time such amounts are waived or assumed, as the case may be.
The Fund will not pay The Dreyfus Corporation at a later time
for any amounts it may waive, nor will the Fund reimburse The
Dreyfus Corporation for any amounts it may assume.
The Dreyfus Corporation may pay the Fund's distributor for
shareholder services from its own assets, including past profits
but not including the management fee paid by the Fund. The
Fund's distributor may use part or all of such payments to pay
Service Agents in respect of these services.
The Fund bears certain costs of distributing Fund shares in
accordance with a plan (the "Service Plan") adopted pursuant to
Rule 12b-1 under the Investment Company Act of 1940. See "Annual
Fund Operating Expenses" and "Service Plan."
The Fund's distributor is Premier Mutual Fund Services,
Inc. (the "Distributor"), located at One Exchange Place, Boston,
Massachusetts 02109. The Distributor is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a
provider of mutual fund administration services, the parent
company of which is Boston Institutional Group, Inc.
The Shareholder Services Group, Inc., a subsidiary of First
Data Corporation, P.O. Box 9671, Providence, Rhode Island
02940-9671, is the Fund's Transfer and Dividend Disbursing Agent
(the "Transfer Agent"). The Bank of New York, 110 Washington
Street, New York, New York 10286, is the Fund's Custodian.
HOW TO BUY FUND SHARES
Fund shares are sold through the Distributor or certain
financial institutions (which may include banks), securities
dealers ("Selected Dealers"), and other industry professionals,
such as investment advisers, accountants and estate planning
firms (collectively, "Service Agents") that have entered into
service agreements with the Distributor. Stock certificates are
issued only upon your written request. No certificates are
issued for fractional shares. It is not recommended that the
Fund be used as a vehicle for Keogh, IRA or other qualified
plans. The 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 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 the 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 Fund and will be processed only upon receipt
thereby. For the location of the nearest Dreyfus Financial
Center, please call one of the telephone numbers listed under
"General Information."
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#8900052295/Dreyfus New Jersey Municipal
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. The 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").
These fees would be in addition to any amounts which might be
received under the Service Plan. Each Service Agent has agreed
to transmit to its clients a schedule of such fees. You should
consult your Service Agent in this regard.
Fund shares 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 the New York Stock Exchange is open for business. Net
asset value per share is computed by dividing the value of the
Fund's net assets (i.e., the value of its assets less
liabilities) by the total number of shares outstanding. The
Fund's investments are valued by an independent pricing service
approved by the Board of Directors 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
Board of Directors. For further information regarding the
methods employed in valuing Fund investments, see "Determination
of Net Asset Value" in the Fund's Statement of Additional
Information.
Federal regulations require that you provide a certified
TIN upon opening or reopening an account. See "Dividends,
Distributions and Taxes" and the 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 (the "IRS").
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 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.
FUND EXCHANGES - You may purchase, in exchange for shares of the
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. If you
desire to use this service, you should consult your Service Agent
or call 1-800-645-6561 to determine if it is available and
whether any conditions are imposed on its use.
To request an exchange, you or your Service Agent acting on
your behalf must give exchange instructions to the Transfer
Agent in writing or by telephone. 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. Prospectuses may be
obtained by calling 1-800-645-6561. 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. The ability to
issue exchange instructions by telephone is given to all Fund
shareholders automatically, unless you check the applicable "NO"
box on the Account Application, indicating that you specifically
refuse this Privilege. The Telephone Exchange Privilege may be
established for an existing account by written request, signed
by all shareholders on the account, or by a separate signed
Shareholder Services Form, also available by calling
1-800-645-6561. If you 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."
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 in which the exchange
is made: Telephone 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 which 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 the Distributor. 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
Fund reserves the right, upon not less than 60 days' written
notice, to charge shareholders a nominal fee in accordance with
rules promulgated by the Securities and Exchange Commission. The
Fund reserves the right to reject any exchange request in whole
or in part. The availability of Fund Exchanges may be modified
or terminated at any time upon notice to 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
the 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 day 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 canceled by the Fund or the Transfer Agent.
You may modify or cancel your exercise of this Privilege at any
time by mailing written notification to The Dreyfus Family of
Funds, P.O. Box 9671, Providence, Rhode Island 02940-9671. The
Fund may charge a service fee for the use of 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, 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 by
calling 1-800-645-6561. 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. The 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 Fund shares
(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 by calling 1-800-645-6561. 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,
the 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 the Fund in shares of another
fund in the Dreyfus Family of Funds of which you are a
shareholder. 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 of dividends and capital gain distributions, if any,
from the Fund to a designated bank account. Only an account
maintained at a 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 and the
funds in the Dreyfus Family of Funds eligible to participate in
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. Enrollment in or
cancellation of these privileges is effective three business
days following receipt. These privileges are available only for
existing accounts and may not be used to open new accounts.
Minimum subsequent investments do not apply. The 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 Fund shares (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 by calling
1-800-645-6561. You may change the amount of purchase or cancel
the authorization only by written notification to your employer.
It is the sole responsibility of your employer, not the
Distributor, The Dreyfus Corporation, the Fund, the Transfer
Agent or any other person, to arrange for transactions under the
Dreyfus Payroll Savings Plan. The 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 of $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 by calling 1-800-645-6561. There
is a service charge of 50 for each withdrawal check. The
Automatic Withdrawal Plan may be ended at any time by you, the
Fund or the Transfer Agent. Shares for which certificates have
been issued may not be redeemed through the Automatic Withdrawal
Plan.
HOW TO REDEEM FUND SHARES
GENERAL - You may request redemption of your shares at any time.
Redemption requests should be transmitted to the Transfer Agent
as described below. When a request is received in proper form,
the Fund will redeem the shares at the next determined net asset
value.
The Fund imposes no charges when shares are redeemed.
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 Fund's then-current
net asset value.
The 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,
THE 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.
The 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 Fund 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. If you have given your Service Agent
authority to instruct the Transfer Agent to redeem shares and to
credit the proceeds of such redemptions to a designated account
at your Service Agent, you may redeem shares only in this manner
and in accordance with the regular redemption procedure
described below. If you wish to use the other redemption methods
described below, you must arrange with your Service Agent for
delivery of the required application(s) to the Transfer Agent.
Other redemption procedures may be in effect for clients of
certain Service Agents. The Fund makes available to certain
large institutions the ability to issue redemption instructions
through compatible computer facilities.
You may redeem 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 telephone redemption privilege or telephone
exchange privilege (which is granted automatically unless you
refuse it), 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, the 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 Fund and will be processed only upon receipt thereby. For
the location of the nearest Dreyfus Financial Center, please
call one of the telephone numbers listed under "General
Information." Redemption requests must be signed by each
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 Signature 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 one of the
telephone numbers 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 the 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 Fund shares should be
considered in determining the amount of the check. 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 the 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 $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 not more than $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 the Fund. The
Fund's 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 the
Fund. Shares for which the 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 not more than
$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. 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 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 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), the redemption request
will be effective on that day. If a redemption request is
received by the Transfer Agent after such close of trading, 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 Fund Shares" for a discussion of
additional conditions or fees that may be imposed upon
redemption.
SERVICE PLAN
Under the Service Plan, adopted pursuant to Rule 12b-1
under the Investment Company Act of 1940, the Fund (a)
reimburses the Distributor for payments to certain Service
Agents for distributing the Fund's shares and servicing
shareholder accounts ("Servicing") and (b) pays The Dreyfus
Corporation, Dreyfus Service Corporation, a wholly-owned
subsidiary of The Dreyfus Corporation, and any affiliate of
either of them (collectively, "Dreyfus") for advertising and
marketing relating to the Fund and for Servicing, at an
aggregate annual rate of .25 of 1% of the value of the Fund's
average daily net assets. Each of the Distributor and Dreyfus
may pay one or more Service Agents a fee in respect of the
Fund's shares owned by shareholders with whom the Service Agent
has a Servicing relationship or for whom the Service Agent is
the dealer or holder of record. Each of the Distributor and
Dreyfus determine the amount, if any, to be paid to Service
Agents under the Service Plan and the basis on which such
payments are made. The fees payable under the Service Plan are
payable without regard to actual expenses incurred.
The 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 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 Fund the greater of $100,000 or .005 of 1% of
the value of the Fund's 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 Fund
shares as the Securities and Exchange Commission construes such
term under Rule 12b-1.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The Fund ordinarily declares dividends from net investment
income on each day the New York Stock Exchange is open for
business. Dividends usually are paid on the last business day of
each month, and are automatically reinvested in additional Fund
shares at net asset value or, at your option, paid in cash. The
Fund's earnings for Saturdays, Sundays and holidays are declared
as dividends on the next business day. 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 the 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. The Fund will not 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.
Management of the Fund believes that the Fund was a
"qualified investment fund" within the meaning of the New Jersey
gross income tax for calendar year 1994. The primary criteria
for constituting a "qualified investment fund" are that (i) the
Fund is an investment company registered with the Securities and
Exchange Commission, which for the calendar year in which the
dividends and distributions (if any) are paid, has no
investments other than interest-bearing obligations, obligations
issued at a discount, and cash and cash items, including
receivables, and financial options, futures and forward
contracts, or other similar financial instruments relating to
interest-bearing obligations, obligations issued at a discount
or bond indexes related thereto and (ii) at the close of each
quarter of the taxable year, the Fund has not less than 80% of
the aggregate principal amount of all of its investments,
excluding financial options, futures and forward contracts, or
other similar financial instruments related to interest-bearing
obligations, obligations issued at a discount or bond indexes
related thereto, cash and cash items, which cash items shall
include receivables, in New Jersey Municipal Obligations,
including obligations of Puerto Rico, the Virgin Islands and
other territories and possessions of the United States and
certain other specified securities. Additionally, a qualified
investment fund must comply with certain continuing reporting
requirements.
If the Fund qualifies as a qualified investment fund and
the Fund complies with its reporting obligations, (a) dividends
and distributions paid by the Fund to a New Jersey resident
individual shareholder will not be subject to New Jersey gross
income tax to the extent that the dividends and distributions
are attributable to income earned by the Fund as interest on or
gain from New Jersey Municipal Obligations, and (b) gain from
the sale of Fund shares by a New Jersey resident individual
shareholder will not subject to the New Jersey gross income tax.
Shares of the Fund are not subject to property taxation by New
Jersey or its political subdivisions. To the extent that you are
subject to state and local taxes outside of New Jersey,
dividends and distributions earned by an investment in the Fund
and gain from the sale of shares in the Fund may represent
taxable income.
Except for dividends from Taxable Investments, the Fund
anticipates that substantially all dividends from net investment
income paid by the Fund will not be subject to Federal income
tax. Dividends derived from Taxable Investments, together with
distributions from any net realized short-term securities gains
and all or a portion of any gains realized from the sale or
other disposition of certain market discount bonds, paid by the
Fund are subject to Federal income tax as ordinary income,
whether or not reinvested in additional Fund shares. No dividend
paid by the Fund will qualify for the dividends received
deduction allowable to certain U.S. corporations. Distributions
from net realized long-term securities gains of the 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.
Although all or a substantial portion of the dividends paid
by the Fund may be excluded by shareholders of the Fund from
their gross income for Federal income tax purposes, the 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 the Fund purchases such securities, the portion of
the Fund's 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 the Fund. If the Fund pays dividends derived
from taxable income, it intends to designate as taxable the same
percentage of the day's dividends 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 the Fund to withhold
("backup withholding") and remit to the U.S. Treasury 31% of
taxable dividends, distributions from net realized securities
gains and the proceeds of any 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 the Fund to
institute backup withholding if the IRS determines 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 the Fund believes that the Fund has qualified
for the fiscal year ended December 31, 1994 as a "regulated
investment company" under the Code. The Fund intends to continue
to so qualify if such qualification is in the best interests of
its shareholders. Such qualification relieves the Fund of any
liability for Federal income taxes to the extent its earnings
are distributed in accordance with applicable provisions of the
Code. The 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.
PERFORMANCE INFORMATION
For purposes of advertising, performance may be calculated
on several bases, including current yield, tax equivalent yield,
average annual total return and/or total return.
Current yield refers to the Fund's 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 that 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 the Fund's
current yield may reflect absorbed expenses pursuant to any
undertaking that may be in effect. See "Management of the Fund."
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 calculated as described
above.
For purposes of advertising, calculations of average annual
total return and certain calculations of total return will take
into account the performance of Dreyfus New Jersey Tax Exempt
Bond Fund, L.P., the assets and liabilities of which were
transferred to the Fund in exchange for shares of the Fund on
August 31, 1988. See "General Information."
Average annual total return is calculated pursuant to a
standardized formula which assumes that an investment in the
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 the Fund's performance will
include the Fund's average annual total return for one, five and
ten year periods, or for shorter time periods depending upon the
length of time during which the Fund has operated.
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.
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.
Comparative performance information may be used from time
to time in advertising or marketing the Fund's shares, 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. The Fund's yield generally should be higher than
that of shorter-term funds (which generally fluctuate less in
price per share).
GENERAL INFORMATION
The Fund was incorporated under Maryland law on January 11,
1988, and commenced operations on August 31, 1988. On September
14, 1990, the Fund's name was changed from Dreyfus New Jersey
Tax Exempt Bond Fund, Inc. to Dreyfus New Jersey Municipal Bond
Fund, Inc. The Fund is authorized to issue 500 million shares of
Common Stock, par value $.001 per share. Each share has one
vote.
On August 3, 1994, the Fund's shareholders voted to (a)
approve (i) a new investment advisory agreement with The Dreyfus
Corporation and (ii) a new Service Plan, both of which became
effective upon consummation of the merger between The Dreyfus
Corporation and a subsidiary of Mellon Bank, N.A., and (b)
change certain of the Fund's investment restrictions to permit
the Fund to (i) borrow money to the extent permitted under the
Investment Company Act of 1940, as amended, and (ii) pledge its
assets to the extent necessary to secure permitted borrowings.
On August 31, 1988, all of the assets and liabilities of
Dreyfus New Jersey Tax Exempt Bond Fund, L.P. (the
"Partnership") were transferred to the Fund in exchange for
shares of Common Stock of the Fund pursuant to a proposal
approved at a Meeting of Partners of the Partnership held on
August 17, 1988.
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 the purpose 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.
The Transfer Agent maintains a record of your ownership and
sends 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. In New York City, call 1-718-895-1206; on Long
Island, call 794-5452.
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO
MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS AND IN THE 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 THE 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>
[This Page Intentionally Left Blank]
<PAGE>
<PAGE>
[This Page Intentionally Left Blank]
<PAGE>
NEW JERSEY
MUNICIPAL
BOND FUND,
INC.
PROSPECTUS
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
PART B
(STATEMENT OF ADDITIONAL INFORMATION)
MAY 1, 1995
This Statement of Additional Information, which is not a
prospectus, supplements and should be read in conjunction with
the current Prospectus of Dreyfus New Jersey
Municipal Bond Fund, Inc. (the "Fund"), dated May 1, 1995 as
it may be revised from time to time. To obtain a copy of the
Fund's Prospectus, please write to the Fund at 144
Glenn Curtiss Boulevard, Uniondale, New York 11556-0144, or call
the following numbers:
Call Toll Free 1-800-645-6561
In New York City -- Call 1-718-895-1206
On Long Island -- Call 794-5452
The Dreyfus Corporation (the "Manager") serves as the Fund's
investment adviser.
Premier Mutual Fund Services, Inc. (the "Distributor") is the
distributor of the Fund's shares.
TABLE OF CONTENTS
Page
Investment Objective and Management Policies . . . . . . B-2
Management of the Fund . . . . . . . . . . . . . . . . . B-9
Management Agreement . . . . . . . . . . . . . . . . . . B-13
Purchase of Fund Shares. . . . . . . . . . . . . . . . . B-15
Service Plan . . . . . . . . . . . . . . . . . . . . . . B-16
Redemption of Fund Shares. . . . . . . . . . . . . . . . B-17
Shareholder Services . . . . . . . . . . . . . . . . . . B-19
Determination of Net Asset Value . . . . . . . . . . . . B-21
Portfolio Transactions . . . . . . . . . . . . . . . . . B-22
Dividends, Distributions and Taxes . . . . . . . . . . . B-23
Performance Information. . . . . . . . . . . . . . . . . B-23
Information About the Fund . . . . . . . . . . . . . . . B-25
Custodian, Transfer and Dividend Disbursing Agent,
Counsel and Independent Auditors . . . . . . . . . . . B-25
Appendix A . . . . . . . . . . . . . . . . . . . . . . . B-26
Appendix B . . . . . . . . . . . . . . . . . . . . . . . B-29
Financial Statements . . . . . . . . . . . . . . . . . . B-38
Report of Independent Auditors . . . . . . . . . . . . . B-51
INVESTMENT OBJECTIVE AND MANAGEMENT POLICIES
THE FOLLOWING INFORMATION SUPPLEMENTS AND SHOULD BE READ IN
CONJUNCTION WITH THE SECTION IN THE FUND'S PROSPECTUS ENTITLED
"DESCRIPTION OF THE FUND."
The average distribution of investments (at value) in
Municipal Obligations (including notes) by ratings for the fiscal
year ended December 31, 1994, computed on a monthly
basis, was as follows:
Fitch Moody's Standard
Investors Investors & Poor's
Service, Inc. Service, Inc. Corporation Percentage
("Fitch") or ("Moody's") or ("S&P") of Value
AAA Aaa AAA 43.0%
AA Aa AA 8.4%
A A A 21.2%
BBB Baa BBB 13.5%
BB Ba BB 2.3%
B B B .6%
F-1[FN] MIG 11 SP-1[FN] .3%
Not Rated Not Rated Not Rated 10.7%[FN]
100.0%
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.
[FN]
1 Includes tax exempt notes rated in one of the two highest
rating categories by Moody's, S&P or Fitch. These
securities, together with Municipal Obligations rated Baa or
better by Moody's or BBB or better by S&P or Fitch, are
taken into account a t the time of a purchase for purposes
of determining that the Fund's portfolio meets the 80%
minimum standard discussed in the Fund's Prospectus.
[FN]
2 Included in the Not Rated category are securities comprising
10.7% of the value of the Fund's assets which, while not
rated, have been determined by the Manager to be of
comparable quality to securities in the following rating
categories: Aaa/AAA (2.0%), A/A (1.1%), Baa/BBB (6.8%) and
Ba/BB (.8%).
Floating and variable rate demand obligations are tax exempt
obligations ordinarily 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 ordinarily has a corresponding right,
after a given period, to prepay in its discretion the
outstanding principal amount of the obligations 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 the Fund's management fee, as well as other
operating expenses, including fees paid under the Service Plan,
will have the effect of reducing the yield to investors.
Municipal lease obligations or installment purchase contract
obligations (collectively, "lease obligations") have special
risks not ordinarily 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 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 the Fund's Board. Pursuant to such
guidelines, the Board has directed the Manager to monitor
carefully the 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, the 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. The Fund will not invest more than 15% of the
value of its et assets in lease obligations that are
illiquid and in other illiquid securities. See "Investment
Restriction No. 11" below.
The Fund will purchase tender option bonds only when it is
satisfied that the custodial and tender option arrangements,
including the fee payment 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 the Fund.
Based on the tender option bond agreement, the 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. Subsequent to its purchase
by the Fund, an issue of rated Municipal Obligations may cease to
be rated or its rating may be reduced below
the minimum required for purchase by the Fund. Neither event
will require the sale of such Municipal Obligations by the Fund,
but the Manager will consider such event in
determining whether the Fund should continue to hold the
Municipal Obligations. To the extent that the ratings given 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 Fund will attempt to use comparable ratings
as standards for its investments in accordance with the
investment policies contained in the Fund's 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.
Lending Portfolio Securities. To a limited extent, the Fund
may lend its portfolio securities to brokers, dealers and other
financial institutions, provided it receives cash
collateral which at all times is maintained in an amount equal to
at least 100% of the current market value of the securities
loaned. By lending its portfolio securities, the Fund can
increase its income through the investment of the cash
collateral. For purposes of this policy, the Fund considers
collateral consisting of U.S. Government securities or
irrevocable letters of credit issued by banks whose securities
meet the standards for investment by the Fund to be the
equivalent of cash. Such loans may not exceed 33 1/3% of the
value of the Fund's total assets. From time to time, the Fund
may return to the borrower or a third party which is unaffiliated
with the Fund, and which is acting as a "placing broker," a part
of the interest earned from the investment of collateral received
for securities loaned.
The Securities and Exchange Commission currently requires
that the following conditions must be met whenever portfolio
securities are loaned: (1) the Fund must receive at
least 100% cash collateral from the borrower; (2) the borrower
must increase such collateral whenever the market value of the
securities rises above the level of such collateral;
(3) the Fund must be able to terminate the loan at any time; (4)
the Fund must receive reasonable interest on the loan, as well as
any interest or other distributions payable on the
loaned securities, and any increase in market value; and (5) the
Fund may pay only reasonable custodian fees in connection with
the loan. These conditions may be subject to future
modification.
Illiquid Securities. 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 the Fund, the Fund intends to treat such
securities as liquid securities in accordance with procedures
approved by the Fund's board of Directors. Because it is not
possible to predict with assurance how the market for restricted
securities pursuant to Rule 144A will develop, the Fund's board
of Directors has directed the Manager to monitor
carefully the Fund's investments in such securities with
particular regard to trading activity, availability of 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, the
Fund's investing in such securities may have the effect of
increasing the level of illiquidity in the Fund's portfolio
during such period.
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 U.S. 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. Principal and 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. Government-sponsored agencies or
instrumentalities, no assurance can be given that it will
always do so, since it is not so obligated by law. The 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 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 the 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 the 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 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. In an attempt
to reduce the risk of incurring a loss on a repurchase agreement,
the 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 the 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. The Fund will consider on an ongoing basis the
creditworthiness of the institutions with which it enters into
repurchase agreements.
Risk Factors
Investing in New Jersey Municipal Obligations. Investors
should consider carefully the special risks inherent in the
Fund's investment in New Jersey Municipal Obligations. If
there should be a default of other financial crisis relating to
the State of New Jersey or an agency or municipality thereof, the
market value and marketability of outstanding New
Jersey Municipal Obligations in the Fund's portfolio and interest
income to the Fund could be adversely affected. These risks
result from the financial condition of the State of New
Jersey. Although New Jersey enjoyed a period of economic growth
with unemployment levels below the national average during the
mid-1980s, its economy slowed down well before
the onset of the national recession, which, according to the
National Bureau of Economic Research, began in July 1990.
Reflecting the economic downturn, the State's
unemployment rate rose from a low of 3.6% in the first quarter of
1989 to a recession peak of 9.3% during 1992. Since then, the
State's unemployment rate fell to 6.7% during the
fourth quarter of 1993 and averaged 7.1% during the first nine
months of 1994. As a result of New Jersey's recent fiscal
weakness, in July 1991, S&P lowered its rating of the State's
general obligation debt from AAA to AA+. Investors should review
Appendix A which sets forth these and other risk factors.
Lower Rated Bonds. The Fund is permitted to invest in
securities rated below Baa by Moody's and below BBB by S&P and
Fitch. Such bonds, though higher yielding, are
characterized by risk. See in the Prospectus "Description of the
Fund--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. The 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 the 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 and will fluctuate
over time. These bonds are considered by S&P, Moody's 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, the 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 the Fund's ability to dispose of
particular issues when necessary to meet the Fund's
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 the Fund to obtain accurate
market quotations for purposes of valuing the Fund's 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 an 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 for such securities.
The Fund may acquire these bonds during an initial offering.
Such securities may involve special risks because they are new
issues. The Fund has no arrangement with any
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 the Fund may
invest up to 5% of its total assets, involve special
considerations. 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,
the 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."
Investment Restrictions. The Fund has adopted investment
restrictions numbered 1 through 7 below as fundamental policies.
These restrictions cannot be changed without
approval by the holders of a majority (as defined in the
Investment Company Act of 1940, as amended (the "Act")) of the
Fund's outstanding voting shares. Investment restrictions
numbered 8 through 12 are not fundamental policies and may be
changed by vote of a majority of the Fund's Directors at any
time. The Fund may not:
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, obligations
issued or guaranteed by the U.S. Government, its agencies or
instrumentalities.
2. Borrow money, except to the extent permitted under the
Act (which currently limits borrowing to no more than 33 1/3% of
the value of the Fund's total assets). For
purposes of this investment restriction, the entry into options,
forward contracts, futures contracts, including those relating to
indices, and options on futures contracts or indices 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 indices, and
options on futures contracts or indices.
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/% 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 of Directors.
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 indices, and options on
futures contracts or indices.
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 Fund's 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 permitted
borrowings and to the extent related to the deposit
of assets in escrow in connection with the purchase of securities
on a when-issued or delayed-delivery basis and collateral and
initial or variation margin arrangements with respect to
options, forward contracts, futures contracts, including those
related to indices, and options on futures contracts or indices.
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 Fund's Prospectus, and floating and variable rate
demand obligations as to which the Fund cannot exercise the
demand feature described in the Fund's Prospectus on less than
seven days' notice and as to which there is no
secondary market) if, in the aggregate, more than 15% of its net
assets would be so invested.
12. Invest in companies for the purpose of exercising
control.
For purposes of Investment Restriction No. 1, 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.
The Fund may make commitments more restrictive than the
restrictions listed above so as to permit the sale of Fund shares
in certain states. Should the Fund determine that
a commitment is no longer in the best interests of the Fund and
its shareholders, the Fund reserves the right to revoke the
commitment by terminating the sale of Fund shares in the
state involved.
MANAGEMENT OF THE FUND
Directors and officers of the Fund, together with information
as to their principal business occupations during at least the
last five years, are shown below. Each Director who
is deemed to be an "interested person" of the Fund, as defined in
the Act, is indicated by an asterisk.
Directors of the Fund
*JOSEPH S. DiMARTINO, Chairman of the Board. Since January 1,
1995, Mr. DiMartino has served as Chairman of the Board for
various funds in the Dreyfus Family of Funds.
For more than five years prior thereto, he was President, a
director and, until August 1994, Chief Operating Officer of
the Manager and Executive Vice President and a
director of Dreyfus Service Corporation, a wholly-owned
subsidiary of the Manager and, until August 1994, the Fund's
distributor. From August 24, 1994 to December 31,
1994, he was a director of Mellon Bank Corporation. Mr.
DiMartino is a director and former Treasurer of the Muscular
Dystrophy Association; a trustee of Bucknell
University; and a director of the Noel Group, Inc. Mr.
DiMartino is also a Board member of 59 other funds in the
Dreyfus Family of Funds. He is 51 years old and his
address is 200 Park Avenue, New York, New York 10166.
GORDON J. DAVIS, Director. Since October 1994, Mr. Davis has
been a senior partner with the law firm of LeBoeuf, Lambe,
Greene & MacRae. From 1983 to September 1994,
he was a senior partner with the law firm of Lord Day & Lord,
Barrett Smith. Mr. Davis was Commissioner of Parks and
Recreation for the City of New York from 1978 to
1983. He is also a Director of Consolidated Edison, a
utility company, and Phoenix Home Life Insurance Company and
a member of various other corporate and not-for-
profit boards. He is also a Board member of 11 other funds
in the Dreyfus Family of Funds. Mr. Davis is 53 years old
and his address is 241 Central Park West, New York,
New York 10024.
*DAVID P. FELDMAN, Director. Corporate Vice President-Investment
Management of AT&T. He is also a trustee of Corporate
Property Investors, a real estate investment
company. He is also a Board member of other funds in the
Dreyfus Family of Funds. Mr. Feldman is 55 years old and his
address is One Oak Way, Berkeley Heights, New
Jersey 07922.
LYNN MARTIN, Director. Holder of the Davee Chair at the J.L.
Kellogg Graduate School of Management, Northwestern
University. During the Spring Semester 1993, she was a
Visiting Fellow at the Institute of Policy, Kennedy School of
Government, Harvard University. Ms. Martin also is a
consultant to the international accounting firm of
Deloitte & Touche, and chairwoman of its Council on the
Advancement of Women. From January 1991 through January
1993, Ms. Martin served as Secretary of the United
States Department of Labor. From 1981 to 1991, she was
United States Congresswoman for the State of Illinois. She
also is a Director of Harcout General Corporation, a
publishing, insurance and retailing company, Ameritech
Corporation, a telecommunications and information company,
and Ryder Systems Incorporated, a transportation
company. She is also a Board member of 11 other funds in the
Dreyfus Family of Funds. Ms. Martin is 53 years old and her
address is 3750 Lake Shore Drive, Chicago, Illinois 60613.
EUGENE McCARTHY, Director. Writer and columnist; former Senator
from Minnesota from 1958-1970. He is also a Board member of
11 other funds in the Dreyfus Family of Funds. Mr. McCarthy
is 78 years old and his address is P.O. Box 22, Woodville,
Virginia 22749.
DANIEL ROSE, Director. President and Chief Executive Officer of
Rose Associates, Inc., a New York based real estate
development and management firm. In July 1994, Mr.
Rose received a Presidential appointment to serve as a
Director of the Baltic American Enterprise Fund, which will
make equity investments and loans and provide technical
business assistance to new business concerns in the Baltic
States. He is also Chairman of the Housing Committee of The
Real Estate Board of New York, Inc., and a Trustee
of Corporate Property Investors, a real estate investment
company. He is also a Board member of 21 other funds in the
Dreyfus Family of Funds. Mr. Rose is 65 years old
and his address is c/o Rose Associates, Inc., 380 Madison
Avenue, New York, New York 10017.
SANDER VANOCUR, Director. Since January 1992, Mr. Vanocur has
been the President of Old Owl Communications, a full-service
communications firm, and since
November 1989, he has served as a Director of the Damon
Runyon-Walter Winchell Cancer Research Fund. From June 1986
to December 1991, he was a Senior
Correspondent of ABC News and, from October 1986 to December
1991, he was Anchor of the ABC News program "Business World,"
a weekly business program on the
ABC television network. He is also a Board member of 21
other funds in the Dreyfus Family of Funds. Mr. Vanocur is
67 years old and his address is 2928 P Street, N.W.,
Washington, D.C. 20007.
ANNE WEXLER, Director. Chairman of the Wexler Group, consultants
specializing in government relations and public affairs. She
is also a Director of American Cyanamid Company, Alumax, The
Continental Corporation, Comcast Corporation, The New
England Electric System, NOVA and a member of the Board of
the Carter Center of Emory University, the Council of Foreign
Relations, the National Park Foundation; the
Visiting Committee of the John F. Kennedy School of
Government at Harvard University and the Board of Visitors of
the University of Maryland School of Public Affairs.
Ms. Wexler is also a Board member of 16 other funds in The
Dreyfus Family of Funds. She is 65 years old and her address
is 1317 F Street, N.W., Washington, D.C. 20004.
REX WILDER, Director. Financial Consultant. He is also a Board
member of 11 other funds in the Dreyfus Family of Funds. Mr.
Wilder is 74 years old and his address is 290
Riverside Drive, New York, New York 10025.
For so long as the Fund's plan described in the section
captioned "Service Plan" remains in effect, the Directors of the
Fund who are not "interested persons" of the Fund, as
defined in the Act, will be selected and nominated by the
Directors who are not "interested persons" of the Fund.
The Fund typically pays its Directors an annual retainer and
a per meeting fee and reimburses them for their expenses. For
the fiscal year ended December 31, 1994, the
aggregate amount of compensation paid to each Director by the
Fund and all other funds in the Dreyfus Family of Funds for which
such person is a Board member are as follows:
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5)
Name of Board Aggregate Pension or Retirement Estimated Annual Total Compensation
Member Compensation from Benefits Accrued as Benefits Upon from Fund and Fund
Fund* Part of Fund's Retirement Complex Paid to
Expenses Board Members
<S> <C> <C> <C> <C>
Gordon J. Davis $3,500 none none $29,602
Joseph S. DiMartino - none none -
Lynn Martin 3,000 none none 26,852
David P. Feldman 3,500 none none 85,631
Eugene McCarthy 3,500 none none 29,403
Daniel Rose 3,500 none none 62,006
Salvatore Saraceno** 404 none none 5,480
Sander Vanocur 3,500 none none 62,006
Anne Wexler 1,182 none none 26,329
Rex Wilder 3,500 none none 29,403
* Amount does not include reimbursed expenses for attending Board meetings, which amounted to $356,712 for all Directors as a
group.
** Deceased as of February, 1994
</TABLE>
Officers of the Fund
MARIE E. CONNOLLY, President and Treasurer. President and Chief
Operating Officer of the Distributor and an officer of other
investment companies advised or administered by the Manager.
From December 1991 to July 1994, she was President and Chief
Compliance Officer of Funds Distributor, Inc., a wholly-
owned subsidiary of The Boston Company, Inc. Prior to
December 1991, she served as Vice President and Controller,
and later as Senior Vice President, of The Boston Company
Advisors, Inc.
JOHN E. PELLETIER, Vice President and Secretary. Senior Vice
President and General Counsel of the Distributor and an
officer of other investment companies advised or
administered by the Manager. From February 1992 to July
1994, he served as Counsel for The Boston Company Advisors,
Inc. From August 1990 to February 1992, he was employed as
an Associate at Ropes & Gray, and prior to August 1990, he
was employed as an Associate at Sidley & Austin.
FREDERICK C. DEY, Vice President and Assistant Treasurer. Senior
Vice President of the Distributor and an officer of other
investment companies advised or administered by the Manager.
From 1988 to August 1994, he was Manager of the High
Performance Fabric Division of Springs Industries Inc.
ERIC B. FISCHMAN, Vice President and Assistant Secretary.
Associate General Counsel of the Distributor and an officer
of other investment companies advised or administered the
Manager. From September 1992 to August 1994, he was an
attorney with the Board of Governors of the Federal
Reserve System.
JOSEPH F. TOWER, III, Assistant Treasurer. Senior Vice
President, Treasurer and Chief Financial Officer of the
Distributor and an officer of other investment
companies advised or administered by the Manager. From July
1988 to August 1994, he was employed by The Boston Company,
Inc. where he held various management positions in the
Corporate Finance and Treasury areas.
JOHN J. PYBURN, Assistant Treasurer. Vice President of the
Distributor and an officer of other investment companies
advised or administered by the Manager. From 1984 to July
1994, he was Assistant Vice President in the Mutual Fund
Accounting Department of the Manager.
PAUL FURCINITO, Assistant Secretary. Assistant Vice President of
the Distributor and an officer of other investment companies
advised or administered by the Manager. From January 1992
to July 1994, he was a Senior Legal Product Manager and,
from January 1990 to January 1992, a mutual fund accountant,
for The Boston Company Advisors, Inc.
RUTH D. LEIBERT, Assistant Secretary. Assistant Vice President
of the Distributor and an officer of other investment
companies advised or administered by the Manager. From
March 1992 to July 1994, she was a Compliance Officer for
The Managers Funds, a registered investment company. From
March 1990 until September 1991, she was Development
Director of The Rockland Center for the Arts and, prior
thereto, was employed as a Research Assistant for the
Bureau of National Affairs.
The address of each officer of the Fund is 200 Park Avenue,
New York, New York 10166.
Directors and officers of the Fund, as a group, owned less
than 1% of the Fund's Common Stock outstanding on February 17,
1995.
MANAGEMENT AGREEMENT
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"Management of the Fund."
The Manager provides management services pursuant to the
Management Agreement (the "Agreement") dated August 24, 1994 with
the Fund, which is
subject to annual approval by (i) the Fund's Board of Directors
or (ii) vote of a majority (as defined in the Act) of the
outstanding voting securities of the Fund,
provided that in either event the continuance also is approved by
a majority of the Directors who are not "interested persons" (as
defined in the Act) of the Fund or
the Manager, by vote cast in person at a meeting called for the
purpose of voting on such approval. The Agreement was approved
by shareholders at a meeting
held on August 3, 1994 and was last approved by the Board of
Directors of the Fund, including a majority of the Directors who
are not "interested persons" of any
party to the Agreement, at a meeting held on November 9, 1994.
The Agreement is terminable without penalty, on 60 days' notice,
by the Fund's Board of
Directors or by vote of the holders of a majority of the Fund's
outstanding voting shares, or, upon not less than 90 days'
notice, by the Manager. The Agreement
will terminate automatically in the event of its assignment (as
defined in the Act).
The following persons are officers and/or directors of the
Manager: Howard Stein, Chairman of the Board and Chief Executive
Officer; W. Keith Smith, Vice Chairman of the Board; Lawrence S.
Kash, Vice
Chairman-Distribution and director; Robert E. Riley, President,
Chief Operating Officer and director; Philip L.
Toia, Vice Chairman-Operations and Administration; Paul H.
Snyder, Vice President-Finance and Chief Financial Officer;
Barbara E. Casey, Vice President-Dreyfus
Retirement Services; Diane M. Coffey, Vice President-Corporate
Communications; Elie M. Genadry, Vice President-Institutional
Sales; Henry D. Gottmann, Vice
President-Retail Sales and Service; Daniel C. Maclean, Vice
President and General Counsel; Mark N. Jacobs, Vice
President-Legal and Secretary; Jeffrey N.
Nachman, Vice President-Mutual Fund Accounting; Katherine C.
Wickham, Vice President-Human Resources; Maurice Bendrihem,
Controller; and Mandell L.
Berman, Frank V. Cahouet, Alvin E. Friedman, Lawrence M. Greene,
Julian M. Smerling and David B. Truman, directors.
The Manager manages the Fund's portfolio of investments in
accordance with the stated policies of the Fund, subject to the
approval of the Fund's Board of
Directors. The Manager is responsible for investment decisions,
and provides the Fund with portfolio managers who are authorized
by the Board of Directors to
execute purchases and sales of securities. The Fund's portfolio
managers 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 the Fund as well as for other funds advised by the Manager.
All purchases and sales are reported
for the Directors' review at the meeting subsequent to such
transactions.
All expenses incurred in the operation of the Fund are borne by
the Fund, except to the extent specifically assumed by the
Manager. The expenses borne by
the Fund include: taxes, interest, loan commitment fees,
interest and distributions paid on securities sold short,
brokerage fees and commissions, if any, fees of
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 corporate existence, costs of independent
pricing services, costs attributable to
investor services (including, without limitation, telephone and
personnel expenses), costs of shareholders' reports and corporate
meetings and any extraordinary
expenses. Pursuant to the Fund's Service Plan, the Fund bears
expenses for advertising, marketing and distributing the Fund's
shares and servicing shareholder
accounts, and also bears the cost of preparing and printing
prospectuses and statements of additional information and costs
associated with implementing and
operating such plan. See "Service Plan."
The Manager maintains office facilities on behalf of the Fund,
and furnishes statistical and research data, clerical help,
accounting, data processing,
bookkeeping and internal auditing and certain other required
services to the Fund. 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 Fund has agreed
to pay the Manager a monthly management fee at the annual rate of
.60 of 1% of the value
of the Fund's average daily net assets. The management fees for
the fiscal years ended December 31, 1992, 1993 and 1994 amounted
to $3,432,689, $4,137,876, and $3,715,934, respectively.
The Manager has agreed that if in any fiscal year the aggregate
expenses of the Fund, 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 the Fund's
average net assets for the fiscal year, the Fund may deduct from
the payment to be made to the Manager under the Agreement, or the
Manager will bear, such
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 is not subject
to reduction as the value of the Fund's net assets increases.
PURCHASE OF FUND SHARES
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"How to Buy Fund Shares."
The Distributor. The Distributor serves as the Fund's
distributor pursuant to an agreement dated August 24, 1994. 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., the
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
Fund account on the next bank 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 Fund
Shares--Dreyfus TeleTransfer Privilege."
Reopening an Account. An investor may reopen an account 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
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"Service Plan."
Rule 12b-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. The Fund's Board of
Directors has adopted such a plan (the
"Plan") pursuant to which the Fund (a) reimburses the Distributor
for payments to certain financial institutions (which may include
banks), securities dealers and
other financial industry professionals (collectively, "Service
Agents") for distributing the Fund's shares and for servicing
shareholder accounts and (b) pays the
Manager and Dreyfus Service Corporation and any affiliate of
either of them (collectively, "Dreyfus") for advertising and
marketing relating to the Fund and
servicing. The Fund's Board of Directors believes that there is
a reasonable likelihood that the Plan will benefit the Fund and
its shareholders. In some states,
banks or other financial institutions effecting transactions in
Fund shares may be required to register as dealers pursuant to
state law.
A quarterly report of the amounts expended under the Plan, and
the purposes for which such expenditures were incurred, must be
made to the Board of
Directors for their review. In addition, the Plan provides that
it may not be amended to increase materially the costs which the
Fund may bear for distribution
pursuant to the Plan without shareholder approval and that other
material amendments of the Plan must be approved by the Board of
Directors, and by the
Directors 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 Plan or in the related service agreements, by vote cast in
person at a meeting called for the purpose of considering such
amendments. The Plan and the related
service agreements are subject to annual approval by such vote of
the Directors cast in person at a meeting called for the purpose
of voting on the Plan. The Plan
was approved by shareholders at a meeting held on August 3, 1994
and was last approved by the Board of Directors at a meeting held
on November 7, 1994. The
Plan may be terminated at any time by vote of the holders of a
majority of the Directors who are not "interested persons" and
have no direct or indirect financial
interest in the operation of the Plan or in any of the related
service agreements or by vote of a majority of the Fund's shares.
Any service agreement may be
terminated without penalty, at any time, by such vote of the
Directors or, upon not more than 60 days' written notice to the
Service Agent, by vote of the holders of
a majority of the Fund's shares, or, upon 15 days' notice, by the
Distributor. Each service agreement will terminate automatically
in the event of its assignment (as defined in the Act).
Under the Plan, for the period August 24, 1994 through December
31, 1994, the total amount payable by the Fund was $536,710, of
which (a)______ was
payable to the Distributor for payments made to Service Agents
for distributing Fund shares and servicing the shareholder
accounts, (b)_____ was payable to
Dreyfus for advertising and marketing Fund shares and servicing
shareholder accounts and (c) $2,035 was payable for printing the
Fund's prospectuses and statement
of additional information, as well as implementing and operating
the Plan. Pursuant to undertakings in effect, the amount
chargeable to the Fund pursuant to The
Service Plan was reduced by $244,422 resulting in a net fee of
$292,288.
Prior Service Plan
For the period from January 1, 1994 through August 23, 1994, the
Fund paid Dreyfus Service Corporation, a wholly-owned subsidiary
of the Manager and the
Fund's distributor during such period, $1,070,341 pursuant to the
Plan, of which $ represented expenditures related to
advertising, marketing, and distributing
the Fund's shares and servicing Fund shareholders.
REDEMPTION OF FUND SHARES
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"How to Redeem Fund 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 and 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 a
representative of the investor's Service Agent acting on the
investor's behalf, and reasonably believed
by the Transfer Agent to be genuine. Ordinarily, the Fund 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 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 transmissions:
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 "Stock Certificates;
Signatures."
Dreyfus TeleTransfer Privilege. Investors should be aware that
if they have also 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 Fund Shares--Dreyfus
TeleTransfer Privilege."
Stock Certificates; Signatures. Any certificates 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 Signature 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 with
respect to signature-guarantees, please call one of the telephone
numbers listed on the cover.
Redemption Commitment. The 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 of
Directors reserves the right to
make payments in whole or in part in securities or other assets
of the Fund 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 markets the Fund ordinarily
utilizes is restricted, or when an
emergency exists as determined by the Securities and Exchange
Commission so that disposal of the 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 Fund's shareholders.
SHAREHOLDER SERVICES
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"Shareholder Services."
Fund Exchanges. 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 request an exchange, an investor, or the investor's Service
Agent acting on his behalf, must give exchange instructions to
the Transfer Agent in writing or
by telephone. The ability to issue exchange instructions by
telephone is given to all Fund shareholders automatically, unless
the investor checks the applicable "NO"
box on the Account Application, indicating that the investor
specifically refuses this Privilege. By using the Telephone
Exchange Privilege, the investor authorizes the
Transfer Agent to act on telephonic 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 the number
of telephone exchanges permitted. Shares issued in certificate
form are not eligible for telephone exchange.
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 the 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 "Fund Exchanges". 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.
In this case, 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.
Fund exchanges and the 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 by calling 1-800-645-6561. The Fund reserves the
right to reject any
exchange request in whole or in part. Fund exchanges or the
Dreyfus Auto Exchange Privilege may be modified or terminated at
any time upon notice to 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. 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 payment date their dividends or dividends and
capital gain distributions, if
any, from the Fund in shares of another fund in the Dreyfus
Family of Funds of which the investor is a shareholder. Shares
of other funds purchased pursuant to
this 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 redemption of
such shares.
DETERMINATION OF NET ASSET VALUE
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled
"How to Buy Fund Shares."
Valuation of Portfolio Securities. The Fund's investments
are
valued by an independent pricing service (the "Service") approved
by the Board of Directors.
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 Board of
Directors. Expenses and fees,
including the management fee (reduced by the expense limitation,
if any) and fees pursuant to the Service Plan, are accrued daily
and are taken into account for the
purpose of determining the net asset value of Fund 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 the 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 the Fund to date.
Transactions are allocated to various dealers by the Fund's
portfolio managers 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 the 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
the 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 Fund's Prospectus entitled
"Dividends, Distributions and Taxes."
The Internal Revenue Code of 1986, as amended (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.
Ordinarily, gains and losses realized from portfolio
transactions will be treated as capital gain or loss. However,
all or a portion of any gains realized from the
sale or other disposition of certain market discount bonds will
be treated as ordinary income under Section 1276 of the Code.
Investment by the Fund 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, the
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 such 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 Fund's Prospectus entitled
"Performance Information."
The Fund's current yield for the 30-day period ended December
31, 1994 was 6.05%, which reflects the absorption of expenses
pursuant to expense
limitations in effect. See "Management of the Fund" in the
Prospectus. Had expenses not been absorbed the Fund's current
yield for the same period would have
been 5.90%. Current yield is computed pursuant to a formula
which operates as follows: The amount of the Fund's expenses
accrued for the 30-day period (net of
reimbursements) is subtracted from the amount of the dividends
and interest earned (computed in accordance with regulatory
requirements) by the Fund 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 1995 Federal and State of New Jersey
personal income tax rate of 43.57%, the Fund's tax equivalent
yield for the 30-day period
ended December 31, 1994 was 10.72%, which reflects the absorption
of expenses pursuant to expense limitations in effect. See
"Management of the Fund" in the
Prospectus. Had expenses not been absorbed the Fund's tax
equivalent yield for the same period would have been 10.46%. 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 yield noted above represents the
application
of the highest Federal and New Jersey State marginal personal
income tax rates presently in
effect. For Federal income tax purposes, a 39.60% tax rate has
been used. For New Jersey income tax purposes, a 6.65% tax rate
has been used. The tax
equivalent yield figure, however, does not include the potential
effect of any 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 yields. 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.
The Fund's average annual total return for the 1, 5 and 7.153
year periods ended December 31, 1994 was -6.02%, 6.89% and 8.16%,
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"the root of the quotient (where
"n" is the number of years in the period) and subtracting 1 from
the result.
The Fund's total return for the period November 6, 1987 to
December 31, 1994 was 75.31%. 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.
From time to time, the Fund may use hypothetical tax
equivalent
yields or charts in its advertising. These hypothetical yields
or charts will be used for
illustrative purposes only and are not representative of the
Fund's past or future performance.
From time to time, the Fund may use hypothetical equivalent
yields or charts in its advertising. These hypothetical yields
or charts will be used for illustrative
purposes only and not as representative of the Fund's past or
future performance. Advertising materials for the 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 for the Fund may also refer
to statistical or other information concerning trends relating to
investment companies, as compiled by industry associations such
as the Investment Company Institute,
and may refer to Morningstar ratings and related analyses
supporting the rating.
INFORMATION ABOUT THE FUND
The following information supplements and should be read in
conjunction with the section in the Fund's 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
nonassessable. Fund shares are of
one class and have equal rights as to dividends and in
liquidation. Shares have no preemptive, subscription or
conversion rights and are freely transferable.
The Fund sends annual and semi-annual financial statements to
all its shareholders.
CUSTODIAN, TRANSFER AND DIVIDEND DISBURSING AGENT,
COUNSEL AND INDEPENDENT AUDITORS
The Bank of New York, 110 Washington Street, New York, New
York
10286, is the Fund's custodian. The Shareholder Services Group,
Inc., a subsidiary of
First Data Corporation, P.O. Box 9671, Providence, Rhode Island
02940-9671, is the 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 the
Fund or which portfolio securities are to be purchased or sold
by the Fund.
Stroock & Stroock & Lavan, 7 Hanover Square, New York, New
York
10004-2696, as counsel for the Fund, has rendered its opinion as
to certain legal
matters regarding the due authorization and valid issuance of the
shares of Common Stock being sold pursuant to the Fund's
Prospectus.
Ernst & Young LLP, 787 Seventh Avenue, New York, New York
10019,
independent auditors, have been selected as independent auditors
of the Fund.
<PAGE>
APPENDIX A
RISK FACTORS--INVESTING IN NEW JERSEY MUNICIPAL OBLIGATIONS.
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 of New Jersey and various local agencies
available as of the date of this Statement of Additional
Information. While the Fund has not independently verified this
information, it has no reason to believe that such information is
not correct in all material respects.
New Jersey's economic base is diversified, consisting of a
variety of manufacturing, construction and service industries,
supplemented by rural areas with selective commercial
agriculture. New Jersey's principal manufacturing industries
produce chemicals, pharmaceutical, electrical equipment and
instruments, machinery, printing and food products. Other
economic activities include services, wholesale and retail trade,
insurance, tourism, petroleum refining and truck farming.
While New Jersey's economy continued to expand during the
late 1980s, the level of growth slowed considerably after 1987.
Initially, this slowdown was an expected response to the State's
tight labor market and the decrease in the number of persons
entering the labor force. Late in the decade, a decline in
construction demand and in the rate of growth in consumer
spending as well as continued softness in the State's
manufacturing sector set the stage for recession in New Jersey.
By the beginning of the national recession in July 1990
(according to the National Bureau of Economic Research),
construction activity had already been declining in New Jersey
for nearly two years. As the rapid acceleration of real estate
prices forced many would-be homeowners out of the market and high
non-residential vacancy rates reduced new commitments for offices
and commercial facilities, construction employment began to
decline; also growth had tapered off markedly in the service
sectors and the long-term downward trend of factory employment
had accelerated, partly because of a leveling off of industrial
demand nationally. The onset of recession caused an acceleration
of New Jersey's job losses in construction and manufacturing, as
well as an employment downturn in such previously growing sectors
as wholesale trade, retail trade, finance, utilities and trucking
and warehousing. The net effect was decline in the State's total
nonfarm wage and salary employment from apeak of 3,706,400 in
March 1989 to a low of 3,445,000 in March 1992. This loss has
been followed by an employment gain of 118,700 from March 1992 to
September 1994. As a result of the State's fiscal weakness, S&P,
in July 1991, lowered its rating of the State's general
obligation debt from AAA to AA+.
Reflecting the downturn, the rate of unemployment in the
State rose from a low of 3.6% during the first quarter of 1989 to
a recessionary peak of 9.3% during 1992. Since then, the
unemployment rate fell to 6.7% during the fourth quarter of 1993.
The jobless rate averaged 7.1% during the first nine months of
1994. In the first nine months of 1994, relative to the same
period a year ago, job growth took place in services (3.5%) and
construction (5.7%), more moderate growth took place in trade
(1.9%), transportation and utilities (1.2%) and
finance/insurance/real estate (1.4%), while manufacturing and
government declined (by 1.5% and 0.1%, respectively). The net
result was a 1.6% increase in average employment during the first
nine months of 1994 compare to the first nine months of 1993.
The fiscal year ending June 30, 1995 Appropriations Act
forecasts Sales and Use Tax collections for fiscal year 1995 of
$3.980 billion, a 5.3% increase from unaudited revenue for Fiscal
Year 1994. Unaudited revenue for fiscal year 1994 for the Sales
and Use Tax of $3.778 billion represents a 3.5% increase from
actual receipts for fiscal year 1993.
The fiscal year 1995 Appropriations Act forecasts Gross
Income Tax collections for fiscal year 1995 of $4.582 billion, a
2.4% increase from unaudited revenue for fiscal year 1994.
Included in the fiscal year 1995 Gross Income Tax forecast is a
5% reduction of personal income tax rates effective January 1,
1994 and a further 10% reduction of personal income tax rates
effective January 1, 1995. The fiscal year 1995 Gross Income Tax
estimates a $549 million reduction effective related to these tax
cuts. Unaudited revenue for fiscal year 1994 for the Gross
Income Tax of $4.475 billion represents a 2.9% increase from
actual receipts for fiscal year 1993.
The fiscal year 1995 Appropriations Act forecasts
Corporation Business Tax collections for fiscal year 1995 of $915
million, a 14% decrease from unaudited revenue for fiscal year
1994. Included in the Corporation Business Tax forecast is a
reduction in the Corporation Business Tax rate from 9.375% to
9.9% of net New Jersey income. Unaudited revenue for fiscal year
1994 for the Corporation Business Tax of $1.063 billion,
represents a 10.6% increase from actual receipts for fiscal year
1993.
The fiscal year 1995 Appropriations Act forecasts Other
Miscellaneous Taxes Fees and Revenues collection for fiscal year
1995 of $1.338 billion, represents a 15.6% decrease from
unaudited revenue for fiscal year 1994 for Other Miscellaneous
Taxes, Fees and Revenues. Included in the Other Miscellaneous
Taxes Fees and Revenues forecast is a decline of $426 million in
the Public Utility Gross receipts and Franchise tax in accordance
with the collection date changes that were legislated in 1991.
In connection with the current fiscal year 1995 budget,
certain unions and individual plaintiffs have filed a lawsuit
concerning the funding of certain retirement systems.
Should revenues be less than the amount anticipated in the
budget for a fiscal year, the Governor may, pursuant to statutory
authority, prevent any expenditure under any appropriation.
There are additional means by which the Governor may ensure that
the State is operated efficiently and does not incur a deficit.
No supplement appropriation may be enacted after adoption of an
appropriations act except where there are sufficient revenues on
hand or anticipated, as certified by the Governor, to meet such
appropriation. In the past when actual revenues have been less
than the amount anticipated in the budget, the Governor has
exercised her plenary powers leading to, among other actions,
implementation of a hiring freeze for all State departments and
the discontinuation of programs for which appropriations were
budgeted but not yet spent.
The State appropriated approximately $15.492 billion and
$15.291 billion for fiscal 1994 and 1995, respectively. Of the
$15.291 billion appropriated in fiscal year 1995 from the General
Fund, the Property Tax Relief Fund, the Casino Control Fund, the
Casino Revenue Fund and Gubernatorial Elections Fund, $5.782
billion (37.8%) is appropriated for State Aid to Local
Governments, $3.762 billion (24.6%) is appropriated for Grants-
in-Aid (payments to individuals or public or private agencies for
benefits to which a recipient is entitled by law or for the
provision of service on behalf of the State), $5.203 billion
(34.0%) for Direct State Services, $103.5 million (0.7%) for Debt
Service on State general obligation bonds and $440.6, million
(2.9%) for Capital Construction.
Should tax revenues be less than the amount anticipated in
the Budget for a fiscal year, the Governor may, pursuant to
statutory authority, prevent any expenditure under any
appropriation. The appropriations for fiscal year 1994 are
unaudited and for fiscal year 1995 are revised estimates, as of
November 7, 1994, from the amounts contain in the fiscal year
1995 Appropriations Act.
The State has made appropriations for principal and interest
payments for general obligation bonds for fiscal years 1991
through 1994 in the amounts of $388.5 million, $410.6 million,
$444.3 million and $119.9, respectively. For fiscal year 1995,
$103.5 million has been appropriated for principal and interest
payments for general obligation bonds.
As of June 30, 1993, the outstanding general obligation
bonded indebtedness of the State was approximately $3.6 billion.
<PAGE>
APPENDIX B
Description of S&P's, Moody's and Fitch 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 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
Principal and interest payments on bonds in this category
are regarded as safe. This rating describes the third strongest
capacity for payment of debt service. It differs from the two
higher ratings because:
General Obligation Bonds -- There is some weakness in the
local economic base, in debt burden, in the balance between
revenues and expenditures, or in quality of management. Under
certain adverse circumstances, any one such weakness might impair
the ability of the issuer to meet debt obligations at some future
date.
Revenue Bonds -- Debt service coverage is good, but not
exceptional. Stability of the pledged revenues could show some
variations because of increased competition or economic
influences on revenues. Basic security provisions, while
satisfactory, are less stringent. Management performance appears
adequate.
BBB
Of the investment grade, this is the lowest.
General Obligation Bonds -- Under certain adverse
conditions, several of the above factors could contribute to a
lesser capacity for payment of debt service. The difference
between "A" and "BBB" rating is that the latter shows more than
one fundamental weakness, or one very substantial fundamental
weakness, whereas the former shows only one deficiency among the
factors considered.
Revenue Bonds -- Debt coverage is only fair. Stability of
the pledged revenues could show substantial variations, with the
revenue flow possibly being subject to erosion over time. Basic
security provisions are no more than adequate. Management
performance could be stronger.
BB, B, CCC, CC, C
Debt rated BB, B, CCC, CC and 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 payments.
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 sign 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
An S&P commercial paper rating is a current assessment of
the likelihood of timely payment of debt having an original
maturity of no more than 365 days.
A
Issues assigned an A rating are regarded as having the
greatest capacity for timely payment. Issues in this category
are delineated with the numbers 1, 2 and 3 to indicate the
relative degree of safety.
A-1
This designation indicates that the degree of safety
regarding timely payment is either overwhelming or very strong.
Those issues determined to posses overwhelming safety
characteristics are denoted with a plus (+) designation.
Capacity for timely payment on issues with this designation
is strong. However, the relative degree of safety is not as high
as for issued 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 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 therefore 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 stranding within the major rating 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 designed 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
alter 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/WMIG 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.
MIG 3/VMIG 3
This designation denotes favorable quality. All security
elements are accounted for but there is lacking the undeniable
strength of the preceding grades. Liquidity and cash flow
protection may be narrow and market access for refinancing is
likely to be less well established.
MIG 4/VMIG 4
This designation denotes adequate quality. Protection
commonly regarded as required of an investment security is
present and although not distinctly or predominantly speculative,
there is a specific risk.
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.
Issuer (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 rates 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 rates 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 profitability 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 lowest 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 13-36 months or 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 safely is not as great as the F-1+ and F-1 categories.
<PAGE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
Statement of Investments December 31, 1994
<CAPTION>
Principal
Long-Term Municipal Investments - 97.0% Amount Value
<S> <C> <C>
New Jersey - 82.2%
Atlantic City
6.30%, 2/1/1996 $2,000,000 $2,023,980
6.30%, 2/1/1997 2,000,000 2,035,700
Atlantic County Utilities Authority,
Solid Waste System Revenue:
7%, 3/1/2008 4,250,000 4,100,952
7.125%, 3/1/2016 6,650,000 6,366,111
Bedminister Township Board of 2,500,000 2,592,700
Education, COP 7.125%, 9/1/2010
Bergen County Utilities Authority, Water
Pollution Control System Revenue
5.50%, 12/15/2015 (Insured: FGIC) 5,000,000 4,395,600
Bordentown Sewer Authority, Revenue 6.80%,
12/1/2025 (Insured; MBIA) 3,000,000 3,043,680
City of Camden:
Zero Coupon, 2/15/2010 (Insured: FSA) 2,500,000 975,650
Zero Coupon, 2/15/2012 (Insured: FSA) 4,585,000 1,564,310
Camden County Municipal Utilities
Authority; Sewer Revenue
8.25%, 12/1/2017 (Insured: FGIC) 8,480,000 9,197,323
Camden County Pollution Control
Financing Authority, Solid Waste
Disposal and Resource Recovery
System Revenue:
7.50%, 12/1/2009 3,335,000 3,273,202
7.50%, 12/1/2010 13,000,000 12,715,950
East Orange:
Zero Coupon, 8/1/2009 (Insured: FSA) 1,000,000 405,850
Zero Coupon, 8/1/2010 (Insured: FSA) 4,240,000 1,607,893
Zero Coupon, 8/1/2011 (Insured: FSA) 2,500,000 886,575
Elk Township Board of Education,
COP 7.375%, 12/1/2009 (Insured: MBIA) 2,000,000 2,111,280
Essex County Improvement Authority,
Lease Revenue:
7%, 12/1/2020 (Insured: AMBAC) 4,000,000 4,334,160
(Newark) 6.60%, 4/1/2014) 1,000,000 970,740
Eveshant Township Board of Education,
COP, Lease Purchase Agreement
6.875%, 9/1/2011 (Insured: FGIC) 3,050,000 3,144,885
Gloucester Township Municipal Utilities
Authority, Revenue 5.65%, 3/1/2018
(Insured: AMBAC) 2,530,000 2,254,685
Howell Township, Refunding 6.80%,
1/1/2014 (Insured: FGIC) 5,000,000 5,111,250
Hudson County Improvement Authority:
Facility Lease Revenue 6.389%,
12/1/2025 (Insured: FGIC) [a.b.] 13,835,000 11,085,294
Multi-Family Housing Revenue
[Conduit Financing-Observer Park
Project] 6.90%, 6/1/2022
(Insured: FNMA) 4,190,000 4,113,826
Jersey City Zero Coupon,
5/15/2010 (Insured: FSA) 4,745,000 1,782,886
Keansburg Board of Education,
COP 8%, 11/1/2014 (Prerefunded
11/1/1999) (c) 7,750,000 8,663,725
Manchester Township Board of
Education, COP 7.20%, 12/15/2009
(Prerefunded 12/15/1998)
(Insured: MBIA) (C) 4,175,000 4,490,046
</TABLE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC
STATEMENT OF INVESTMENTS
DECEMBER 31, 1994
<CAPTION>
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--97.0% AMOUNT VALUE
NEW JERSEY--82.2%
<S> <C> <C>
Atlantic City:
6.30%, 2/1/1996......................................................... $ 2,000,000 $ 2,023,980
6.30%, 2/1/1997......................................................... 2,000,000 2,035,700
Atlantic County Utilities Authority, Solid Waste System Revenue:
7%, 3/1/2008............................................................ 4,250,000 4,100,952
7.125%, 3/1/2016........................................................ 6,650,000 6,366,111
Bedminster Township Board of Education, COP 7.125%, 9/1/2010................ 2,500,000 2,592,700
Bergen County Utilities Authority, Water Pollution Control System Revenue
5.50%, 12/15/2015 (Insured; FGIC)....................................... 5,000,000 4,395,600
Bordentown Sewer Authority, Revenue 6.80%, 12/1/2025 (Insured; MBIA)........ 3,000,000 3,043,680
City of Camden:
Zero Coupon, 2/15/2010 (Insured; FSA)................................... 2,500,000 975,650
Zero Coupon, 2/15/2012 (Insured; FSA)................................... 4,585,000 1,564,310
Camden County Municipal Utilities Authority, Sewer Revenue
8.25%, 12/1/2017 (Insured; FGIC)........................................ 8,480,000 9,197,323
Camden County Pollution Control Financing Authority,
Solid Waste Disposal and Resource Recovery System Revenue:
7.50%, 12/1/2009...................................................... 3,335,000 3,273,202
7.50%, 12/1/2010...................................................... 13,000,000 12,715,950
East Orange:
Zero Coupon, 8/1/2009 (Insured; FSA).................................... 1,000,000 405,850
Zero Coupon, 8/1/2010 (Insured; FSA).................................... 4,240,000 1,607,893
Zero Coupon, 8/1/2011 (Insured; FSA).................................... 2,500,000 886,575
Elk Township Board of Education, COP 7.375%, 12/1/2009 (Insured; MBIA)...... 2,000,000 2,111,280
Essex County Improvement Authority, Lease Revenue:
7%, 12/1/2020 (Insured; AMBAC).......................................... 4,000,000 4,334,160
(Newark) 6.60%, 4/1/2014................................................ 1,000,000 970,740
Evesham Township Board of Education, COP, Lease Purchase Agreement
6.875%, 9/1/2011 (Insured; FGIC)........................................ 3,050,000 3,144,885
Gloucester Township Municipal Utilities Authority, Revenue
5.65%, 3/1/2018 (Insured; AMBAC)........................................ 2,530,000 2,254,685
Howell Township, Refunding 6.80%, 1/1/2014 (Insured; FGIC).................. 5,000,000 5,111,250
Hudson County Improvement Authority:
Facility Lease Revenue 6.389%, 12/1/2025 (Insured; FGIC) (a,b).......... 13,835,000 11,085,294
Multi-Family Housing Revenue (Conduit Financing - Observer Park Project)
6.90%, 6/1/2022 (Insured;FNMA)........................................ 4,190,000 4,113,826
Jersey City Zero Coupon, 5/15/2010 (Insured; FSA)........................... 4,745,000 1,782,886
Keansburg Board of Education, COP 8%, 11/1/2014 (Prerefunded 11/1/1999) (c). 7,750,000 8,663,725
Manchester Township Board of Education, COP
7.20%, 12/15/2009 (Prerefunded 12/15/1998) (Insured; MBIA)(c)........... 4,175,000 4,490,046
</TABLE>
<PAGE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC
STATEMENT OF INVESTMENTS
DECEMBER 31, 1994
<CAPTION>
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--CONTINUED AMOUNT VALUE
<S> <C> <C>
NEW JERSEY (continued)
Mercer County Improvement Authority, Revenue, Refunding:
Insured Solid Waste (Resource Recovery Project) 6.70%, 4/1/2013 (Insured; FGIC) $ 11,000,000 $ 11,066,110
Solid Waste (Resource Recovery Project) 6.80%, 4/1/2005................. 6,150,000 6,043,728
Middlesex County Utilities Authority, Sewer Revenue 6%, 8/15/2015 (Insured; AMBAC) 1,300,000 1,219,608
Monmouth County Improvement Authority, Revenue (Asbury Park Project)
7.375%, 12/1/2009....................................................... 3,000,000 3,113,700
Monroe Township Municipal Utilities Authority, Water and Sewer System Revenue
6.875%, 2/1/2017 (Insured; MBIA)........................................ 5,000,000 5,202,650
Borough of Moonachie Board of Education, COP
6.375%, 3/1/2014 (Lease Purchase Agreement; Lamington Funding Corp.).... 3,775,000 3,615,733
New Brunswick Parking Authority, Revenue, Refunding
7.125%, 9/1/2015 (Prerefunded 9/1/1999) (Insured; FGIC) (c)............. 2,000,000 2,151,020
New Jersey Economic Development Authority, Revenue:
(Community Mental Health Loan Program) 8.50%, 7/1/2017.................. 7,610,000 7,720,573
District Heating and Cooling Revenue (Trigen - Trenton Project):
6.10%, 12/1/2004...................................................... 3,375,000 3,286,778
6.20%, 12/1/2007...................................................... 2,725,000 2,658,728
Economic Development:
(American Airlines Inc. Project) 7.10%, 11/1/2031..................... 2,855,000 2,688,782
First Mortgage (The Evergreens) 9.25%, 10/1/2022...................... 5,000,000 5,094,950
First Mortgage Gross (Mega Care Inc. Project)
8.625%, 8/1/2007 (Prerefunded 8/1/1997) (c)....................... 5,000,000 5,480,000
Gas Facilities (Elizabethtown Gas Co. Project) 6.75%, 10/1/2021....... 1,350,000 1,301,346
Refunding:
(Manchester Manor Project) 6.70%, 8/1/2022 (Insured; GNMA)........ 2,500,000 2,388,200
(Stolt Terminals Inc. Project) 10.50%, 1/15/2018.................. 9,440,000 10,571,384
(Tevco Inc. Project) 8.125%, 10/1/2009 (LOC; Credit Lyonnais) (d). 2,500,000 2,618,500
Waste Paper Recycling (Marcal Paper Mills Inc. Project):
6.25%, 2/1/2009................................................... 6,605,000 6,005,860
8.50%, 2/1/2010................................................... 5,850,000 6,322,738
Water Facilities:
(American Water Co. Inc. Project) 6.50%, 4/1/2022 (Insured; FGIC). 32,800,000 32,139,736
(Elizabeth Water Project):
6.60%, 8/1/2021................................................. 6,010,000 5,777,113
6.70%, 8/1/2021................................................. 3,965,000 3,789,866
(Hackensack Water Project) 7%, 10/1/2017.......................... 1,500,000 1,502,700
New Jersey Educational Facilities Authority, Revenue:
(New Jersey Institute of Technology) 6.90%, 7/1/2009 (Insured; MBIA).... 2,000,000 2,069,660
(Seton Hall University Project):
6.85%, 7/1/2019 (Insured; BIGI)....................................... 9,050,000 9,196,610
7%, 7/1/2021.......................................................... 3,500,000 3,502,170
(Trenton State College)
7.125%, 7/1/2009 (Prerefunded 7/1/1999) (Insured; AMBAC) (c).......... 4,000,000 4,310,480
(Union County College) 7.25%, 7/1/2009.................................. 2,100,000 2,174,571
</TABLE>
<PAGE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC
STATEMENT OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1994
<CAPTION>
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--CONTINUED AMOUNT VALUE
<S> <C> <C>
NEW JERSEY (CONTINUED)
New Jersey Health Care Facilities Financing Authority, Revenue:
(Bridgeton and Millville Hospitals):
7.875%, 7/1/2010 (Prerefunded 7/1/1998) (Insured; MBIA) (c)........... $ 1,250,000 $ 1,366,175
8%, Series C, 7/1/2013 (Prerefunded 7/1/1998) (Insured; MBIA) (c)..... 1,735,000 1,897,275
8%, Series D, 7/1/2013 (Insured; MBIA)................................ 645,000 701,238
(Community Memorial Hospital Association) 8%, 7/1/2014 (Insured; MBIA).. 2,500,000 2,720,475
(Deborah Heart and Lung Center Issue):
6.20%, 7/1/2013....................................................... 1,250,000 1,109,300
6.30%, 7/1/2023....................................................... 2,700,000 2,329,371
(Elmer Community Hospital)
7.90%, 2/1/2007 (Prerefunded 8/1/1997) (Insured; FHA) (c)............. 3,100,000 3,343,970
Health System (Franciscan Sisters of the Poor - Health Systems, Inc.,
Saint Mary's Hospital) 5.875%, 7/1/2012 (Insured; MBIA)............... 3,250,000 2,695,810
(Hunterdon Medical Center) 7%, 7/1/2020 (Insured; AMBAC)................ 5,000,000 5,116,800
(Kennedy Memorial Hospital University Medical Center):
8.375%, 7/1/2010...................................................... 2,065,000 2,308,938
6%, 7/1/2020.......................................................... 4,115,000 3,567,746
(Kimball Medical Center) 8%, 7/1/2013................................... 13,000,000 13,347,360
(Medical Center of Ocean County) 6.75%, 7/1/2020 (Insured; FSA)......... 2,000,000 2,012,820
(Newcomb Medical Center) 7.875%, 7/1/2003............................... 2,795,000 2,850,006
(Overlook Hospital Association) 6%, 7/1/2000 (Insured; FGIC)............ 250,000 254,915
(Palisades Medical Center):
7.50%, 7/1/2006....................................................... 2,450,000 2,418,517
7.60%, 7/1/2021....................................................... 2,400,000 2,323,104
(Princeton Medical Center) 7%, 7/1/2022 (Insured; AMBAC)................ 3,375,000 3,453,840
(Raritan Bay Medical Center) 7.25%, 7/1/2014............................ 13,000,000 12,289,290
(Refunding - Atlantic City Medical Center) 6.80%, 7/1/2011.............. 2,500,000 2,481,650
(Saint Peter's Medical Center)
6%, 7/1/2021 (Prerefunded 7/1/2001) (Insured; MBIA)................... 1,500,000 1,520,910
(Zurbrugg Memorial Hospital) 8.50%, 7/1/2012............................ 9,565,000 9,928,470
New Jersey Housing and Mortgage Finance Agency, Revenue:
Home Buyer:
7.65%, 10/1/2016 (Insured; MBIA)...................................... 1,085,000 1,136,364
4.880%, 4/1/2025 (Insured; MBIA) (a,b)................................ 9,200,000 6,497,500
7.70%, 10/1/2029 (Insured; MBIA)...................................... 4,835,000 4,969,461
Home Mortgage 8.10%, 10/1/2017 (Insured; MBIA).......................... 2,955,000 3,095,540
Multi-Family Housing, Refunding (Presidential Plaza at Newport Project)
7%, 5/1/2030 (Insured; FHA)........................................... 5,000,000 5,064,950
Rental Housing 6.75%, 11/1/2022......................................... 9,310,000 8,915,628
New Jersey Housing Finance Agency, General Resolution (Section 8)
7.10%, 11/1/2012........................................................ 1,000,000 1,016,890
New Jersey Transit Corp., Lease Purchase Agreement, COP (Raymond
Plaza East Inc.)
6.50%, 10/1/2016 (Insured; FSA)......................................... 3,945,000 3,944,487
New Jersey Transportation Trust Fund Authority 1.295%, 5/15/1997 (a,b)...... 10,000,000 9,362,500
New Jersey Wastewater Treatment Trust, Loan Revenue
7.375%, 5/15/2007 (Insured; MBIA)....................................... 2,000,000 2,129,360
</TABLE>
<PAGE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC
STATEMENT OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1994
<CAPTION>
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--CONTINUED AMOUNT VALUE
<S> <C> <C>
NEW JERSEY (CONTINUED)
North Jersey District Water Supply Commission:
(Wanaque North Project) 6%, 11/15/2019 (Insured; MBIA).................. $ 3,850,000 $ 3,604,832
(Wanaque South Project) 6%, 7/1/2019 (Insured; MBIA).................... 2,000,000 1,864,360
Ocean County Pollution Control Financing Authority, PCR, Refunding
(Ciba Geigy Corp. Project) 6%, 5/1/2020................................. 11,700,000 10,282,077
Passaic Board of Education, COP 7.875%, 4/1/2004 (Prerefunded 4/1/1999)
(LOC: Marine Midland Bank) (c,d)........................................ 4,000,000 4,383,720
Passaic County Utilities Authority, Solid Waste System Revenue 7%, 11/15/2007 5,000,000 4,895,900
Port Authority of New York and New Jersey:
(Delta Airlines Inc. Project) 6.95%, 6/1/2008........................... 7,200,000 6,908,976
Revenue:
(Consolidated Board 71st Series) 6.50%, 1/15/2026..................... 4,000,000 3,850,480
(Consolidated Board 73rd Series) 6.75%, 4/15/2026..................... 9,000,000 8,837,820
Special Obligation (Continental-Eastern LaGuardia Project) 9.125%, 12/1/2015 6,500,000 7,040,085
Rutgers State University 7%, 5/1/2019 (Prerefunded 5/1/1999) (c)............ 4,525,000 4,840,257
Salem County Improvement Authority, Revenue (County Correctional Facility and
Court House) 7.125%, 5/1/2017 (Prerefunded 5/1/1999) (Insured; AMBAC) (c).. 2,000,000 2,151,260
Salem County Industrial Pollution Control Financing Authority, Revenue
(Atlantic City Electric Project) 7.375%, 4/15/2014...................... 2,575,000 2,675,168
Sayreville Housing Development Corp., Mortgage Revenue, Refunding
(Lakeview Section 8) 7.75%, 8/1/2024 (Insured; FHA)..................... 2,990,000 3,043,073
Southeast Morris County Municipal Utilities Authority, Water Revenue
6.50%, 1/1/2011 (Insured; FGIC)......................................... 1,475,000 1,489,617
University of Medicine and Dentistry 7.20%, 12/1/2019....................... 5,710,000 5,916,588
West New York Municipal Utilities Authority, Sewer Revenue, Refunding
7.30%, 12/15/2017 (Prerefunded 12/15/2000) (Insured; FGIC) (c).......... 6,250,000 6,861,687
U.S. RELATED --14.8%
Guam Power Authority, Revenue 6.30%, 10/1/2022.............................. 3,750,000 3,334,275
Commonwealth of Puerto Rico:
5.50%, 7/1/2013......................................................... 4,500,000 3,902,085
7.30%, 7/1/2020 (Prerefunded 7/1/2000) (c).............................. 10,850,000 11,911,130
Public Improvement 6.80%, 7/1/2021 (Prerefunded 7/1/2002) (c)........... 4,400,000 4,752,220
Puerto Rico Electric Power Authority, Power Revenue, Refunding
8%, 7/1/2008 (Prerefunded 7/1/1998) (c)................................. 2,000,000 2,205,180
Puerto Rico Highway and Transportation Authority, Highway Revenue:
6.625%, 7/1/2002........................................................ 510,000 545,425
6.360%, 7/1/2007 (a).................................................... 11,100,000 9,060,375
6.023%, 7/1/2009 (a).................................................... 2,950,000 2,282,563
7.75%, 7/1/2016 (Prerefunded 7/1/2000) (c).............................. 3,460,000 3,871,394
6.625%, Series S, 7/1/2018 (Prerefunded 7/1/2002) (c)................... 9,400,000 10,052,924
6.625%, Series T, 7/1/2018 (Prerefunded 7/1/2002) (c)................... 2,040,000 2,010,134
</TABLE>
<PAGE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC
STATEMENT OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1994
<CAPTION>
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--CONTINUED AMOUNT VALUE
<S> <C> <C>
U.S. RELATED (CONTINUED)
Puerto Rico Housing Finance Corp., MFMR
7.50%, 4/1/2022 (LOC; Government Development Bank of Puerto Rico) (d) .. $ 3,355,000 $ 3,458,200
Puerto Rico Industrial Medical and Environmental Pollution Control Facilities
Financing Authority, Revenue (Baxter Travenol Laboratories) 8%, 9/1/2012 5,000,000 5,357,550
Puerto Rico Public Buildings Authority, Guaranteed Public Education and Health
Facilities:
6%, 7/1/2012.......................................................... 1,650,000 1,531,992
7%, 7/1/2019 (Prerefunded 7/1/1998) (c)............................... 2,000,000 2,128,400
Puerto Rico Urban Renewal and Housing Corp. 7.875%, 10/1/2004............... 2,000,000 2,146,700
University of Puerto Rico, University Revenues, Refunding 6.50%, 6/1/2013... 2,250,000 2,230,785
Virgin Islands, Matching Fund (Hugo Insurance Claims Fund Program)
7.75%, 10/1/2006........................................................ 3,475,000 3,638,221
Virgin Islands Public Finance Authority, Revenue, Refunding
(Matching Fund Loan Notes) 7.25%, 10/1/2018 ............................ 4,750,000 4,644,123
Virgin Islands Water and Power Authority, Electric System Revenue 7.40%, 7/1/2011 4,000,000 4,032,520
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $544,113,160)..................................................... $544,174,303
SHORT-TERM MUNICIPAL INVESTMENTS--3.0%
NEW JERSEY:
New Jersey Economic Development Authority, Revenue, VRDN:
Industrial and Economic Development (Merck and Co.)
5.75% (LOC; Bankers Trust Co.) (d,e).................................. $ 2,000,000 $ 2,000,000
Pollution Control:
(Merck and Co.) 6% (e)................................................ 800,000 800,000
Refunding (Hoffman LaRoche Project) 5.75% (LOC; Bankers Trust Co.) (d,e) 2,800,000 2,800,000
New Jersey Turnpike Authority, Turnpike Revenue, VRDN
4.65% (LOC; Societe Generale, Insured; FGIC) (d,e)...................... 6,300,000 6,300,000
Port Authority of New York and New Jersey, Special Obligation Revenue, VRDN
6% (SBPA; Morgan Guaranty Trust Co.) (e)................................ 5,000,000 5,000,000
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $16,900,000)...................................................... $ 16,900,000
TOTAL INVESTMENTS--100.0%
(cost $561,013,160)..................................................... $561,074,303
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation GNMA Government National Mortgage Association
BIGI Bond Investors Guaranty Insurance LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company MFMR Multi-Family Mortgage Revenue
FHA Federal Housing Administration PCR Pollution Control Revenue
FNMA Federal National Mortgage Association SBPA Standby Bond Purchase Agreement
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
<S> <C> <C> <C>
FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
AAA Aaa AAA 40.7%
AA Aa AA 6.4
A A A 20.2
BBB Baa BBB 14.5
BB Ba BB 2.1
B B B 1.3
F1 MIG1 SP1 2.2
Not Rated (g) Not Rated (g) Not Rated (g) 12.6
------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Inverse floater security - the interest rate is subject
to change periodically.
(b) 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 December 31, 1994, these securities
amounted to $26,945,294 or 4.7% of net assets.
(c) Bonds which are prerefunded are collateralized by U.S.
government securities which are held in escrow and are used to
pay principal and interest on the municipal issue and to retire
the bonds in full at the earliest refunding date.
(d) Secured by letters of credit.
(e) 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.
(f) Fitch currently provides creditworthiness information
for a limited number of investments.
(g) Securities which, while not rated by Fitch, Moody's or
Standard and Poor's, have been determined by the Manager to be of
comparable quality to those rated securities in which the Fund
may invest.
See notes to financial statements.
<PAGE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1994
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $561,013,160)-see statement............................................. $561,074,303
Cash........................................................................... 4,543,365
Interest receivable............................................................ 12,299,237
Prepaid expenses............................................................... 11,675
------------
577,928,580
LIABILITIES:
Due to The Dreyfus Corporation.................................................. $219,567
Due to Distributor.............................................................. 123,596
Payable for shares of Common Stock redeemed..................................... 3,425
Accrued expenses................................................................ 57,209 403,797
------------
NET ASSETS........................................................................ $577,524,783
============
REPRESENTED BY:
Paid-in capital................................................................. $578,911,627
Accumulated undistributed investment income-net................................. 93,977
Accumulated net realized capital losses and distributions in excess of net
realized gain on investments-Note 1(c)...................................... (1,541,964)
Accumulated net unrealized appreciation on investments-Note 3................... 61,143
------------
NET ASSETS at value applicable to 46,540,437 shares outstanding
(500 million shares of $.001 par value Common Stock authorized)................. $577,524,783
============
NET ASSET VALUE, offering and redemption price per share
($577,524,783 divide 46,540,437 shares)......................................... $12.41
=====
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME................................................................. $ 43,059,985
EXPENSES:
Management fee-Note 2(a)...................................................... $ 3,852,037
Shareholder servicing costs-Note 2(b)......................................... 2,016,172
Custodian fees................................................................ 72,895
Professional fees............................................................. 50,316
Prospectus and shareholders' reports-Note 2(b)................................ 27,202
Directors' fees and expenses-Note 2(c)........................................ 25,541
Registration fees............................................................. 4,677
Miscellaneous................................................................. 167,771
-----------
6,216,611
Less-reduction in management fee and shareholder servicing costs
due to undertakings-Note 2(b).............................................. 1,287,546
-----------
TOTAL EXPENSES.......................................................... 4,929,065
-----------
INVESTMENT INCOME--NET.................................................. 38,130,920
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 3..................................... $ (1,454,272)
Net unrealized (depreciation) on investments.................................. (78,775,736)
-----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS....................... (80,230,008)
-----------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............................ $(42,099,088)
============
See notes to financial statements.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------
1993 1994
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income-net...................................................... $ 39,555,174 $ 38,130,920
Net realized gain (loss) on investments.................................... 1,854,233 (1,454,272)
Net unrealized appreciation (depreciation) on investments for the year..... 41,608,187 (78,775,736)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS......... 83,017,594 (42,099,088)
-------------- --------------
DIVIDENDS TO SHAREHOLDERS:
From investment income-net................................................. (39,555,174) (38,036,943)
From net realized gain on investments...................................... (1,117,588) ___
In excess of net realized gain on investments.............................. ___ (743,575)
-------------- --------------
TOTAL DIVIDENDS.......................................................... (40,672,762) (38,780,518)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.............................................. 259,116,860 167,291,374
Dividends reinvested....................................................... 32,091,573 29,894,610
Cost of shares redeemed.................................................... (222,267,812) (264,596,453)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS........ 68,940,621 (67,410,469)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.............................. 111,285,453 (148,290,075)
NET ASSETS:
Beginning of year.......................................................... 614,529,405 725,814,858
-------------- --------------
End of year (including undistributed investment income-net; $93,977 in 1994) $725,814,858 $577,524,783
============== ==============
SHARES SHARES
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold................................................................ 18,866,106 12,816,258
Shares issued for dividends reinvested..................................... 2,325,735 2,298,448
Shares redeemed............................................................ (16,110,778) (20,301,295)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING............................ 5,081,063 (5,186,589)
============== ==============
See notes to financial statements.
</TABLE>
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Reference is made to page 4 of the Prospectus dated May 1,
1995.
See notes to financial statements.
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL 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, until August 24, 1994, acted as the distributor of
the Fund's
shares, which are sold to the public without a sales load.
Dreyfus Service
Corporation is a wholly-owned subsidiary of The Dreyfus
Corporation
("Manager"). Effective August 24, 1994, the Manager became a
direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The
Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a
wholly-owned
subsidiary of Institutional Administration Services, Inc., a
provider of
mutual fund administration services, the parent company of which
is Boston
Institutional Group, Inc.
(A) PORTFOLIO VALUATION: The Fund's investments are valued
each business
day by an independent pricing service ("Service") approved by the
Fund's
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 original issue
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 from investment income-net on each business day. 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.
Dividends in excess of net realized gain on investments for
financial
statement purposes result primarily from distributions of
realized gain
necessary to satisfy tax requirements.
(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 and
excise taxes.
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of
approximately $1,454,000
available for Federal income tax purposes to be applied against
future net
securities profits, if any, realized subsequent to December 31,
1994. 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
Fund's
aggregate expenses, exclusive of taxes, interest on borrowings,
brokerage and
extraordinary expenses, exceed 1 1/2% of the average value of the
Fund's net
assets for any full year. However, the manager has currently
undertaken from
November 8, 1994 to reduce the management fee paid by the Fund,
to the extent
that the Fund's aggregate expenses (excluding certain expenses as
described
above) exceed specified annual percentages of the Fund's average
daily net
assets. The reduction in management fee, pursuant to the
undertakings,
amounted to $136,103 for the year ended December 31, 1994.
The Manager may modify the expense limitation percentages
from time to
time, provided that the resulting expense reimbursement would not
be less
than the amount required pursuant to the Agreement.
(B) On August 3, 1994, Fund shareholders approved a revised
Service Plan
(the "Plan") pursuant to Rule 12b-1 under the Act. Pursuant to
the Plan,
effective August 24, 1994, the Fund (a) reimburses the
Distributor for
payments to certain Service Agents for distributing the Fund's
shares and
servicing shareholder accounts and (b) pays the Manager, Dreyfus
Service
Corporation or any other affiliate (collectively "Dreyfus") for
advertising
and marketing relating to the Fund and servicing shareholder
accounts, at an
aggregate annual rate of .25 of 1% of the value of the Fund's
average daily
net assets. Each of the Distributor and Dreyfus may pay Service
Agents (a
securities dealer, financial institution or other industry
professional) a
fee in respect of the Fund's shares owned by shareholders with
whom the
Service Agent has a servicing relationship or for whom the
Service Agent is
the dealer or holder of record. Each of the Distributor and
Dreyfus determine
the amounts to be paid to Service Agents to which it will make
payments and
the basis on which such payments are made. 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 year.
Prior to August 24, 1994, the Fund's Service Plan ("prior
Service Plan")
provided that the Fund pay Dreyfus Service Corporation 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. Dreyfus
Service
Corporation made payments to one or more Service Agents based on
the value of
the Fund's shares owned by clients of the Service Agent. The
prior Service
Plan also separately provided 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 prior Service Plan, not to exceed the greater of
$100,000 or
.005 of 1% of the Fund's average daily net assets for any full
year.
During the year ended December 31, 1994, $536,710 was charged
to the Fund
pursuant to the Plan, of which $244,422 was waived by the Manager
and
$1,077,272 was charged to the Fund pursuant to the prior Service
Plan, of
which $907,021 was waived by the Manager.
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(C) Prior to August 24, 1994, certain officers and directors
of the Fund
were "affiliated persons," as defined in the Act, of the Manager
and/or
Dreyfus Service Corporation. Each director who is not an
"affiliated person"
receives an annual fee of $2,500 and an attendance fee of $250
per meeting.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment
securities
amounted to $91,731,576 and $176,044,065, respectively, for the
year ended
December 31, 1994, and consisted entirely of long-term and
short-term
municipal investments.
At December 31, 1994, accumulated net unrealized appreciation
on
investments was $61,143, consisting of $17,278,254 gross
unrealized
appreciation and $17,217,111 gross unrealized depreciation.
At December 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).
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
We have audited the accompanying statement of assets and
liabilities of
Dreyfus New Jersey Municipal Bond Fund, Inc., including the
statement of
investments, as of December 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 December 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 Jersey Municipal Bond Fund, Inc. at
December 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 LLP Signature Logo)
New York, New York
February 6, 1995
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
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 from
November 6, 1987 (commencement of operations) to December 31,
1987 and for each of the seven years in the period
ended December 31, 1994.
Included in Part B of the Registration Statement:
Statement of Investments-- December 31, 1994.
Statement of Assets and Liabilities-- December
31, 1994.
Statement of Operations--year ended December
31, 1994.
Statement of Changes in Net Assets--for the
years ended December 31, 1992 and 1994.
Notes to Financial Statements
Report of Ernst & Young LLP, Independent
Auditors, dated
February 1, 1995.
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 Articles of Incorporation are incorporated
by reference to Exhibit (1) of the Registration Statement on Form
N-1A, filed on January 16, 1988.
(b) Registrant's Articles of Amendment are incorporated by
reference to Exhibit (1) of the Registration Statement on Form N-
1A, filed on March 1, 1991.
(2) Registrant's By-Laws, as amended on July 20, 1989, are
incorporated by reference to Exhibit (2) of Post-Effective
Amendment No. 3 to the Registration Statement on Form
N-1A, filed on April 23, 1990.
(4) Specimen certificate for the Registrant's securities is
incorporated by reference to Exhibit (4) of the Registration
Statement on Form N-1A, filed on January 16, 1988.
(5) Management Agreement.
(6)(a) Distribution Agreement.
(6)(b) Forms of Service Agreement.
(8)(a) Amended and Restated Custody Agreement dated August 18,
1989 is incorporated by reference to Exhibit 8(a) of Post-
Effective Amendment No. 3 to the Registration Statement
on Form N-1A, filed on April 23, 1990.
(8)(b) Sub-Custodian Agreements are incorporated by reference
to Exhibits 8(a), (b), (c) and (d) of Post-Effective Amendment
No.
1 to the Registration Statement on Form N-1A, filed on
December 13, 1988.
(10) Opinion and consent of Registrant's counsel is
incorporated by reference to Exhibit (10) of Pre-Effective
Amendment No. 1
to the Registration Statement on Form N-1A, filed on
December 13, 1988.
(11) Consent of Independent Auditors.
(15) Service Plan.
(16) Schedules of Computation of Performance Data are
incorporated by reference to Exhibit (16) of Post-Effective
Amendment
No. 7 to the Registration Statement on Form N-1A filed
on March 25, 1994.
Item 24. Financial Statements and Exhibits. - List (continued)
_______ _____________________________________________________
Other Exhibits
______________
(a) Powers of Attorney.
(b) Certificate of Secretary.
Item 25. Persons Controlled by or under Common Control with
Registrant.
_______ _______________________________________________________
Not Applicable
Item 26. Number of Holders of Securities.
_______ ________________________________
(1) (2)
Number of Record
Title of Class Holders as of February 17, 1995
______________ ________________________________
Common Stock
(Par value $.001) 14,533
Item 27. Indemnification
_______ _______________
Reference is made to Article SEVENTH of the
Registrant's Articles of Incorporation filed as Exhibit (1) to
the
Registration Statement on Form N-1A, filed on January
16, 1988 and to Section 2-418 of the Maryland General Corporation
Law. The application of these provisions is limited by
Article VIII of the Registrant's By-Laws filed as Exhibit (2)
to the Registration Statement on Form N-1A, filed on
January 16, 1988 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.
Item 28. Business and Other Connections of 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 investment adviser, sub-investment adviser or
administrator. Dreyfus Management, Inc., another wholly-owned
subsidiary, provides investment management services to
various pension plans, institutions and individuals.
<PAGE>
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.
FRANK V. CAHOUET Chairman of the Board, President and
Director Chief Executive Officer:
Mellon Bank Corporation
One Mellon Bank Center
Pittsburgh, Pennsylvania 15258;
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, Pennsylvania 15258
Director:
Avery Dennison Corporation
150 North Orange Grove Boulevard
Pasadena, California 91103;
Saint-Gobain Corporation
750 East Swedesford Road
Valley Forge, Pennsylvania 19482;
Teledyne, Inc.
1901 Avenue of the Stars
Los Angeles, California 90067
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.**
LAWRENCE M. GREENE Director:
Director Dreyfus America Fund
JULIAN M. SMERLING None
Director
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;
DAVID B. TRUMAN Former Director:
(cont'd) 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;
Chairman of the Board and Dreyfus Acquisition
Corporation*;
Chief Executive Officer The Dreyfus Consumer Credit
Corporation;
Dreyfus Management, Inc.*:
Dreyfus Service Corporation;*
Chairman of the Board and Chief Executive
Officer:
Major Trading Corporation;*
Director:
Avnet, Inc.**;
Dreyfus America Fund++++;
The Dreyfus Fund International
Limited+++++;
World Balanced Fund+++;
Dreyfus Partnership Management,
Inc.*;
Dreyfus Personal Management, Inc.*;
Dreyfus Precious Metals, Inc.*;
Dreyfus Service Organization, Inc.*;
Seven Six Seven Agency, Inc.*:
Trustee:
Corporate Property Investors
New York, New York;
W. KEITH SMITH Chairman and Chief Executive Officer:
Vice Chairman of the Board The Boston Company
One Boston Place
Boston, Massachusetts 02108
Vice Chairman of the Board:
Mellon Bank Corporation
One Mellon Bank Center
Pittsburgh, Pennsylvania 15258;
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, Pennsylvania 15258
Director:
Dentsply International, Inc.
570 West College Avenue
York, Pennsylvania 17405
ROBERT E. RILEY Director:
President, Chief Dreyfus Service Corporation
Operating Officer,
and a Director
LAWRENCE S. KASH Chairman, President and Chief
Vice Chairman-Distribution Executive Officer:
and a Director The Boston Company Advisors, Inc.
53 State Street
Exchange Place
Boston, Massachusetts 02109
Executive Vice President and
Director:
Dreyfus Service Organization,
Inc.*:
Director:
The Dreyfus Consumer Credit
Corporation*;
The Dreyfus Trust Company++;
Dreyfus Service Corporation*;
President:
The Boston Company
One Boston Place
Boston, Massachusetts 02108;
Laurel Capital Advisors
One Mellon Bank Center
Pittsburgh, Pennsylvania 15258;
Boston Group Holdings, Inc.
Executive Vice President
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, Pennsylvania 15258;
Boston Safe Deposit & Trust
One Boston Place
Boston, Massachusetts 02108
PHILIP L. TOIA Chairman of the Board and Trust Investment
Vice Chairman-Operations Officer:
and Administration The Dreyfus Trust Company+++;
Chairman of the Board and Chief Executive
Officer:
Major Trading Corporation*;
Director:
The Dreyfus Security Savings Bank
F.S.B.+;
Dreyfus Service Corporation*;
Seven Six Seven Agency, Inc.*;
President and Director:
Dreyfus Acquisition Corporation*;
The Dreyfus Consumer Credit
Corporation*;
Dreyfus-Lincoln, Inc.*;
Dreyfus Management, Inc.*;
Dreyfus Personal Management, Inc.*:
Dreyfus Partnership Management, Inc.+;
Dreyfus Service Organization*;
The Truepenny Corporation*;
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
PAUL H. SNYDER Director:
Vice President-Finance Pennsylvania Economy League
and Chief Financial Philadelphia, Pennsylvania;
Officer Children's Crisis Treatment Center
Philadelphia, Pennsylvania;
Dreyfus Service Corporation*
Director and Vice President:
Financial Executives Institute;
Philadelphia Chapter
Philadelphia, Pennsylvania
BARBARA E. CASEY President:
Vice President- Dreyfus Retirement Services Division;
Dreyfus Retirement Executive Vice President:
Services Boston Safe Deposit & Trust Co.
One Boston Place
Boston, Massachusetts 02108;
DIANE M. COFFEY None
Vice President-
Corporate Communications
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.*;
Vice President:
The Dreyfus Trust Company++;
HENRY D. GOTTMANN Executive Vice President:
Vice President-Retail Dreyfus Service Corporation*;
Sales and Service Vice President:
Dreyfus Precious Metals*;
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*;
Director and Secretary:
Dreyfus Partnership Management, Inc.*:
Major Trading Corporation*;
The Truepenny Corporation+;
Director:
The Dreyfus Trust Company++;
Secretary:
Seven Six Seven Agency, Inc.*;
JEFFREY N. NACHMAN None
Vice President-Mutual Fund
Accounting
KATHERINE C. WICKHAM Formerly, Assistant Commissioner:
Vice President- Department of Parks and Recreation of
the
Human Resources City of New York
830 Fifth Avenue
New York, New York 10022
MAURICE BENDRIHEM Treasurer:
Dreyfus Partnership Management, Inc.*;
Dreyfus Service Organization, Inc.*;
Seven Six Seven Agency, Inc.*;
The Truepenny Corporation*;
Controller:
Dreyfus Acquisition Corporation*;
The Dreyfus Trust Company++;
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 Director:
Vice President-Fund Lion Management, Inc.*;
Legal and Compliance Secretary:
The Dreyfus Consumer Credit
Corporation*;
Dreyfus Management, Inc.*;
Assistant Secretary:
Dreyfus Service Organization, Inc.*;
Major Trading Corporation*;
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 Glen
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 Nassau,
Bahama Islands
<PAGE>
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, Inc.
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 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/Laurel Funds, Inc.
37) The Dreyfus/Laurel Funds Trust
38) The Dreyfus/Laurel Tax-Free Municipal Funds
39) The Dreyfus/Laurel Investment Series
40) The Dreyfus Leverage Fund, Inc.
41) Dreyfus Life and Annuity Index Fund, Inc.
42) Dreyfus Liquid Assets, Inc.
43) Dreyfus Massachusetts Intermediate Municipal Bond
Fund
44) Dreyfus Massachusetts Municipal Money Market Fund
45) Dreyfus Massachusetts Tax Exempt Bond Fund
46) Dreyfus Michigan Municipal Money Market Fund,
Inc.
47) Dreyfus Money Market Instruments, Inc.
48) Dreyfus Municipal Bond Fund, Inc.
49) Dreyfus Municipal Cash Management Plus
50) Dreyfus Municipal Money Market Fund, Inc.
51) Dreyfus New Jersey Intermediate Municipal Bond
Fund
52) Dreyfus New Jersey Municipal Bond Fund, Inc.
53) Dreyfus New Jersey Municipal Money Market Fund,
Inc.
54) Dreyfus New Leaders Fund, Inc.
55) Dreyfus New York Insured Tax Exempt Bond Fund
56) Dreyfus New York Municipal Cash Management
57) Dreyfus New York Tax Exempt Bond Fund, Inc.
58) Dreyfus New York Tax Exempt Intermediate Bond
Fund
59) Dreyfus New York Tax Exempt Money Market Fund
60) Dreyfus Ohio Municipal Money Market Fund, Inc.
61) Dreyfus 100% U.S. Treasury Long Term Fund
62) Dreyfus 100% U.S. Treasury Long Term Fund
63) Dreyfus 100% U.S. Treasury Money Market Fund
64) Dreyfus 100% U.S. Treasury Short Term Fund
65) Dreyfus Pennsylvania Intermediate Municipal Bond
Fund
66) Dreyfus Pennsylvania Municipal Money Market Fund
67) Dreyfus Short-Intermediate Government Fund
68) Dreyfus Short-Intermediate Municipal Bond Fund
69) Dreyfus Short-Term Income Fund, Inc.
70) The Dreyfus Socially Responsible Growth Fund,
Inc.
71) Dreyfus Strategic Growth, L.P.
72) Dreyfus Strategic Income
73) Dreyfus Strategic Investing
74) Dreyfus Tax Exempt Cash Management
75) Dreyfus Treasury Cash Management
76) Dreyfus Treasury Prime Cash Management
77) Dreyfus Variable Investment Fund
78) Dreyfus-Wilshire Target Funds, Inc.
79) Dreyfus Worldwide Dollar Money Market Fund, Inc.
80) General California Municipal Bond Fund, Inc.
81) General California Municipal Money Market Fund
82) General Government Securities Money Market Fund,
Inc.
83) General Money Market Fund, Inc.
84) General Municipal Bond Fund, Inc.
85) General Municipal Money Market Fund, Inc.
86) General New York Municipal Bond Fund, Inc.
87) General New York Municipal Money Market Fund
88) Pacific American Fund
89) Peoples Index Fund, Inc.
90) Peoples S&P MidCap Index Fund, Inc.
91) Premier Insured Municipal Bond Fund
92) Premier California Municipal Bond Fund
93) Premier GNMA Fund
94) Premier Growth Fund, Inc.
95) Premier Municipal Bond Fund
96) Premier New York Municipal Bond Fund
97) Premier State Municipal Bond Fund
<PAGE>
<TABLE>
(b)
<CAPTION>
Positions and
Name and principal Positions and offices with offices with
business address the Distributor Registrant
__________________ __________________________ _____________
<S> <C> <C>
Marie E. Connolly+ Director, President, Chief President and
Operating Officer and Compliance Treasurer
Officer
Joseph F. Tower, III+ Senior Vice President, Treasurer Assistant
and Chief Financial Officer Treasurer
John E. Pelletier+ Senior Vice President, General Vice President
Counsel, Secretary and Clerk and Secretary
Frederick C. Dey++ Senior Vice President Vice President
and Assistant
Treasurer
Eric B. Fischman++ Vice President and Associate Vice President
General Counsel and Assistant
Secretary
Lynn H. Johnson+ Vice President None
Ruth D. Leibert++ Assistant Vice President Assistant
Secretary
Paul D. Furcinito++ Assistant Vice President Assistant
Secretary
Paul Prescott+ Assistant Vice President None
Leslie M. Gaynor+ Assistant Treasurer None
Mary Nelson+ Assistant Treasurer None
John J. Pyburn++ Vice President Assistant
Treasurer
Jean M. O'Leary+ Assistant Secretary and None
Assistant Clerk
John W. Gomez+ Director None
William J. Nutt+ Director None
________________________________
+ Principal business address is One Exchange Place, Boston,
Massachusetts 02109.
++ Principal business address is 200 Park Avenue, New York, New
York 10166.
</TABLE>
<PAGE>
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 the Fund's latest Annual Report to
Shareholders, upon request and without charge.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and
the
Investment Company Act of 1940, the Registrant 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 27th day of February, 1995.
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
BY: /s/Marie E. Connolly*
------------------------------------
Marie E. Connolly, 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
date indicated.
<TABLE>
<CAPTION>
Signatures Title Date
_________________________ ______________________________ ___________
<S> <C> <C>
/s/Marie E. Connolly* President (Principal Executive 02/27/95
------------------------
Marie E. Connolly Officer) and Treasurer
/s/Joseph F. Tower, III* Assistant Treasurer (Principal 02/27/95
------------------------
Joseph F. Tower, III Financial Officer)
/s/Joseph S. DiMartino* Chairman of the Board and Director 02/27/95
------------------------
Joseph S. DiMartino
/s/Gordon J. Davis* Director 02/27/95
------------------------
Gordon J. Davis
/s/David P. Feldman* Director 02/27/95
------------------------
David P. Feldman
/s/Lynn Martin* Director 02/27/95
------------------------
Lynn Martin
/s/Eugene McCarthy* Director 02/27/95
------------------------
Eugene McCarthy
/s/Daniel Rose* Director 02/27/95
------------------------
Daniel Rose
/s/Anne Wexler* Director 02/27/95
------------------------
Anne Wexler
/s/Sander Vanocur* Director 02/27/95
------------------------
Sander Vanocur
/s/Rex Wilder* Director 02/27/95
------------------------
Rex Wilder
*BY: /s/Ruth D. Leibert
------------------------
Ruth D. Leibert,
Attorney-in-Fact
</TABLE>
INDEX OF EXHIBITS
Page
(5) Management Agreement...........................
(6)(a) Distribution Agreement.........................
(6)(b) Forms of Service Agreement.....................
(11) Consent of Independent Auditors................
(15) Service Plan...................................
Other Exhibits
(a) Powers of Attorney.............................
(b) Certificate of Secretary.......................
<PAGE>
EXHIBIT 5
MANAGEMENT AGREEMENT
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
August 24, 1994
The Dreyfus Corporation
200 Park Avenue
New York, New York 10166
Dear Sirs:
The above-named investment company (the "Fund")
herewith confirms its agreement with you as follows:
The Fund desires to employ its capital by investing
and reinvesting the same in investments of the type and in
accordance with the limitations specified in its charter
documents and in its Prospectus and Statement of Additional
Information as from time to time in effect, copies of which have
been or
will be submitted to you, and in such manner
and to such extent as from time to time may be approved by the
Fund's Board. The Fund desires to employ you to act as its
investment adviser.
In this connection it is understood that from time
to time you will employ or associate with yourself such person or
persons as you may believe to be particularly fitted
to assist you in the performance of this Agreement. Such person
or persons may be officers or employees who are employed by both
you and the Fund. The compensation of such
person or persons shall be paid by you and no obligation may be
incurred on the Fund's behalf in any such respect.
Subject to the supervision and approval of the
Fund's Board, you will provide investment management of the
Fund's
portfolio in accordance with the Fund's investment
objectives and policies as stated in its Prospectus and Statement
of Additional Information as from time to time in effect. In
connection therewith, you will obtain and provide
investment research and will supervise the Fund's investments and
conduct a continuous program of investment, evaluation and, if
appropriate, sale and reinvestment of the Fund's
assets. You will furnish to the Fund such statistical
information, with respect to the investments which the Fund may
hold or
contemplate purchasing, as the Fund may reasonably
request. The Fund wishes to be informed of important
developments materially affecting its portfolio and shall expect
you, on your
own initiative, to furnish to the Fund from time
to time such information as you may believe appropriate for this
purpose.
In addition, you will supply office facilities
(which may be in your own offices), data processing services,
clerical,
accounting and bookkeeping services, internal auditing
and legal services, internal executive and administrative
services, and stationery and office supplies; prepare reports to
the
Fund's stockholders, tax returns, reports to and filings with
the Securities and Exchange Commission and state Blue Sky
authorities; calculate the net asset value of the Fund's shares;
and
generally assist in all aspects of the Fund's operations.
You shall have the right, at your expense, to engage other
entities to assist you in performing some or all of the
obligations set
forth in this paragraph, provided each such entity
enters into an agreement with you in form and substance
reasonably satisfactory to the Fund. You agree to be liable for
the acts or
omissions of each such entity to the same extent
as if you had acted or failed to act under the circumstances.
You shall exercise your best judgment in rendering
the services to be provided to the Fund hereunder and the Fund
agrees as an inducement to your undertaking the
same that you shall not be liable hereunder for any error of
judgment or mistake of law or for any loss suffered by the Fund,
provided that nothing herein shall be deemed to protect
or purport to protect you against any liability to the Fund or to
its security holders to which you would otherwise be subject by
reason of willful misfeasance, bad faith or gross
negligence in the performance of your duties hereunder, or by
reason of your reckless disregard of your obligations and duties
hereunder.
In consideration of services rendered pursuant to
this Agreement, the Fund will pay you on the first business day
of
each month a fee at the annual rate of .60 of 1% of
the value of the Fund's average daily net assets. Net asset
value shall be computed on such days and at such time or times as
described in the Fund's then-current Prospectus and
Statement of Additional Information. Upon any termination of
this Agreement before the end of any month, the fee for such part
of a
month shall be pro-rated according to the
proportion which such period bears to the full monthly period and
shall be payable upon the date of termination of this Agreement.
For the purpose of determining fees payable to you,
the value of the Fund's net assets shall be computed in the
manner
specified in the Fund's charter documents for
the computation of the value of the Fund's net assets.
You will bear all expenses in connection with the
performance of your services under this Agreement. All other
expenses to be incurred in the operation of the Fund
will be borne by the Fund, except to the extent specifically
assumed by you. The expenses to be borne by the Fund include,
without
limitation, the following: organizational costs,
taxes, interest, loan commitment fees, interest and distributions
paid on securities sold short, brokerage fees and commissions, if
any, fees of Board members who are not your
officers, directors or employees or holders of 5% or more of your
outstanding voting securities, Securities and Exchange Commission
fees and 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
independent pricing services, costs of maintaining the Fund's
existence, costs attributable to investor services (including,
without
limitation, telephone and personnel expenses), costs
of preparing and printing prospectuses and statements of
additional information for regulatory purposes and for
distribution to
existing stockholders, costs of stockholders' reports
and meetings, and any extraordinary expenses.
If in any fiscal year the aggregate expenses of the
Fund (including fees pursuant to this Agreement, but excluding
interest, taxes, brokerage and, with the prior written
consent of the necessary state securities commissions,
extraordinary expenses) exceed 1-1/2% of the average value of the
Fund's net
assets for the fiscal year, the Fund may deduct
from the fees to be paid hereunder, or you will bear, such excess
expense. Your obligation pursuant hereto will be limited to the
amount of your fees hereunder. 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 Fund understands that you now act, and that
from time to time hereafter you may act, as investment adviser to
one
or more other investment companies and
fiduciary or other managed accounts, and the Fund has no
objection to your so acting, provided that when the purchase or
sale of
securities of the same issuer is suitable for the
investment objectives of two or more companies or accounts
managed by you which have available funds for investment, the
available
securities will be allocated in a manner
believed by you to be equitable to each company or account. It
is recognized that in some cases this procedure may adversely
affect
the price paid or received by the Fund or the
size of the position obtainable for or disposed of by the Fund.
In addition, it is understood that the persons
employed by you to assist in the performance of your duties
hereunder
will not devote their full time to such service and
nothing contained herein shall be deemed to limit or restrict
your right or the right of any of your affiliates to engage in
and
devote time and attention to other businesses or to
render services of whatever kind or nature.
You shall not be liable for any error of judgment
or mistake of law or for any loss suffered by the Fund in
connection
with the matters to which this Agreement relates,
except for a loss resulting from willful misfeasance, bad faith
or gross negligence on your part in the performance of your
duties
or from reckless disregard by you of your obligations
and duties under this Agreement. Any person, even though also
your officer, director, partner, employee or agent, who may be or
become an officer, Board member, employee or
agent of the Fund, shall be deemed, when rendering services to
the Fund or acting on any business of the Fund, to be rendering
such
services to or acting solely for the Fund and not
as your officer, director, partner, employee or agent or one
under your control or direction even though paid by you.
This Agreement shall continue until January 21,
1995, and thereafter shall continue automatically for successive
annual periods ending on January 21st of each year,
provided such continuance is specifically approved at least
annually by (i) the Fund's Board or (ii) vote of a majority (as
defined
in the Investment Company Act of 1940) of the
Fund's outstanding voting securities, provided that in either
event its continuance also is approved by a majority of the
Fund's
Board members who are not "interested persons" (as
defined in said Act) of any party to this Agreement, by vote cast
in person at a meeting called for the purpose of voting on such
approval. This Agreement is terminable without
penalty, on 60 days' notice, by the Fund's Board or by vote of
holders of a majority of the Fund's shares or, upon not less than
90
days' notice, by you. This Agreement also will
terminate automatically in the event of its assignment (as
defined in said Act).
The Fund recognizes that from time to time your
directors, officers and employees may serve as directors,
trustees,
partners, officers and employees of other
corporations, business trusts, partnerships or other entities
(including other investment companies) and that such other
entities
may include the name "Dreyfus" as part of their name,
and that your corporation or its affiliates may enter into
investment advisory or other agreements with such other entities.
If you
cease to act as the Fund's investment adviser, the
Fund agrees that, at your request, the Fund will take all
necessary action to change the name of the Fund to a name not
including
"Dreyfus" in any form or combination of words.
If the foregoing is in accordance with your
understanding, will you kindly so indicate by signing and
returning to us
the enclosed copy hereof.
Very truly yours,
DREYFUS NEW JERSEY MUNICIPAL BOND
FUND, INC.
By:_______________________________
Accepted:
THE DREYFUS CORPORATION
By:_______________________________
<PAGE>
EXHIBIT (6)(a)
DISTRIBUTION AGREEMENT
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, New York 11556-0144
August 24, 1994
Premier Mutual Fund Services, Inc.
One Exchange Place
Tenth Floor
Boston, Massachusetts 02109
Dear Sirs:
This is to confirm that, in consideration
of the agreements hereinafter contained, the above-named
investment company (the "Fund") has agreed that you shall
be, for the period of this agreement, the distributor of (a)
shares of each Series of the Fund set forth on Exhibit A hereto,
as
such Exhibit may be revised from time to time (each, a
"Series") or (b) if no Series are set forth on such Exhibit,
shares of the Fund. For purposes of this agreement the term
"Shares"
shall mean the authorized shares of the relevant
Series, if any, and otherwise shall mean the Fund's authorized
shares.
1. Services as Distributor
1.1 You will act as agent for the
distribution of Shares covered by, and in accordance with, the
registration statement and prospectus then in effect under the
Securities Act of 1933, as amended, and will transmit promptly
any orders received by you for purchase or redemption of Shares
to
the Transfer and Dividend Disbursing Agent for
the Fund of which the Fund has notified you in writing.
1.2 You agree to use your best efforts
to solicit orders for the sale of Shares. It is contemplated
that
you will enter into sales or servicing agreements with
securities dealers, financial institutions and other industry
professionals, such as investment advisers, accountants and
estate
planning firms, and in so doing you will act only on your
own behalf as principal.
1.3 You shall act as distributor of
Shares in compliance with all applicable laws, rules and
regulations,
including, without limitation, all rules and regulations
made or adopted pursuant to the Investment Company Act of 1940,
as amended, by the Securities and Exchange Commission or any
securities association registered under the Secu-
rities Exchange Act of 1934, as amended.
1.4 Whenever in their judgment such
action is warranted by market, economic or political conditions,
or by
abnormal circumstances of any kind, the Fund's
officers may decline to accept any orders for, or make any sales
of, any Shares until such time as they deem it advisable to
accept
such orders and to make such sales and the Fund
shall advise you promptly of such determination.
1.5 The Fund agrees to pay all costs and
expenses in connection with the registration of Shares under the
Securities Act of 1933, as amended, and all
expenses in connection with maintaining facilities for the issue
and transfer of Shares and for supplying information, prices and
other data to be furnished by the Fund hereunder,
and all expenses in connection with the preparation and printing
of the Fund's prospectuses and statements of additional
information
for regulatory purposes and for distribution to
shareholders; provided however, that nothing contained herein
shall be deemed to require the Fund to pay any of the costs of
advertising the sale of Shares.
1.6 The Fund agrees to execute any and
all documents and to furnish any and all information and
otherwise
to take all actions which may be reasonably
necessary in the discretion of the Fund's officers in connection
with the qualification of Shares for sale in such states as you
may
designate to the Fund and the Fund may approve,
and the Fund agrees to pay all expenses which may be incurred in
connection with such qualification. You shall pay all expenses
connected with your own qualification as a dealer
under state or Federal laws and, except as otherwise specifically
provided in this agreement, all other expenses incurred by you in
connection with the sale of Shares as contemplated
in this agreement.
1.7 The Fund shall furnish you from time
to time, for use in connection with the sale of Shares, such
information with respect to the Fund or any relevant
Series and the Shares as you may reasonably request, all of which
shall be signed by one or more of the Fund's duly authorized
officers; and the Fund warrants that the statements
contained in any such information, when so signed by the Fund's
officers, shall be true and correct. The Fund also shall furnish
you upon request with: (a) semi-annual reports and
annual audited reports of the Fund's books and accounts made by
independent public accountants regularly retained by the Fund,
(b)
quarterly earnings statements prepared by the
Fund, (c) a monthly itemized list of the securities in the Fund's
or, if applicable, each Series' portfolio, (d) monthly balance
sheets as soon as practicable after the end of each month,
and (e) from time to time such additional information regarding
the Fund's financial condition as you may reasonably request.
1.8 The Fund represents to you that all
registration statements and prospectuses filed by the Fund with
the
Securities and Exchange Commission under the
Securities Act of 1933, as amended, and under the Investment
Company Act of 1940, as amended, with respect to the Shares have
been
carefully prepared in conformity with the
requirements of said Acts and rules and regulations of the
Securities and Exchange Commission thereunder. As used in this
agreement
the terms "registration statement" and "pro-
spectus" shall mean any registration statement and prospectus,
including the statement of additional information incorporated by
reference therein, filed with the Securities and Ex-
change Commission and any amendments and supplements thereto
which at any time shall have been filed with said Commission.
The Fund
represents and warrants to you that any
registration statement and prospectus, when such registration
statement becomes effective, will contain all statements required
to
be stated therein in conformity with said Acts and
the rules and regulations of said Commission; that all statements
of fact contained in any such registration statement and
prospectus will be true and correct when such registration
statement becomes effective; and that neither any registration
statement nor any prospectus when such registration statement
becomes
effective will include an untrue statement of a
material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not
misleading. The Fund may but shall not be obligated to
propose from time to time such amendment or amendments to any
registration statement and such supplement or supplements to any
prospectus as, in the light of future develop-
ments, may, in the opinion of the Fund's counsel, be necessary or
advisable. If the Fund shall not propose such amendment or
amendments and/or supplement or supplements
within fifteen days after receipt by the Fund of a written
request from you to do so, you may, at your option, terminate
this
agreement or decline to make offers of the Fund's
securities until such amendments are made. The Fund shall not
file any amendment to any registration statement or supplement to
any
prospectus without giving you reasonable
notice thereof in advance; provided, however, that nothing
contained in this agreement shall in any way limit the Fund's
right to
file at any time such amendments to any registration
statement and/or supplements to any prospectus, of whatever
character, as the Fund may deem advisable, such right being in
all
respects absolute and unconditional.
1.9 The Fund authorizes you to use any
prospectus in the form furnished to you from time to time, in
connection with the sale of Shares. The Fund agrees
to indemnify, defend and hold you, your several officers and
directors, and any person who controls you within the meaning of
Section 15 of the Securities Act of 1933, as amended,
free and harmless from and against any and all claims, demands,
liabilities and expenses (including the cost of investigating or
defending such claims, demands or liabilities and any
counsel fees incurred in connection therewith) which you, your
officers and directors, or any such controlling person, may incur
under the Securities Act of 1933, as amended, or
under common law or otherwise, arising out of or based upon any
untrue statement, or alleged untrue statement, of a material fact
contained in any registration statement or any
prospectus or arising out of or based upon any omission, or
alleged omission, to state a material fact required to be stated
in
either any registration statement or any prospectus or
necessary to make the statements in either thereof not
misleading; provided, however, that the Fund's agreement to
indemnify you,
your officers or directors, and any such controlling
person shall not be deemed to cover any claims, demands,
liabilities or expenses arising out of any untrue statement or
alleged
untrue statement or omission or alleged omission
made in any registration statement or prospectus in reliance upon
and in conformity with written information furnished to the Fund
by you specifically for use in the preparation
thereof. The Fund's agreement to indemnify you, your officers
and directors, and any such controlling person, as aforesaid, is
expressly conditioned upon the Fund's being notified of
any action brought against you, your officers or directors, or
any such controlling person, such notification to be given by
letter
or by telegram addressed to the Fund at its address set
forth above within ten days after the summons or other first
legal process shall have been served. The failure so to notify
the
Fund of any such action shall not relieve the Fund
from any liability which the Fund may have to the person against
whom such action is brought by reason of any such untrue, or
alleged untrue, statement or omission, or alleged
omission, otherwise than on account of the Fund's indemnity
agreement contained in this paragraph 1.9. The Fund will be
entitled to
assume the defense of any suit brought to
enforce any such claim, demand or liability, but, in such case,
such defense shall be conducted by counsel of good standing
chosen
by the Fund and approved by you. In the event
the Fund elects to assume the defense of any such suit and retain
counsel of good standing approved by you, the defendant or
defendants in such suit shall bear the fees and
expenses of any additional counsel retained by any of them; but
in case the Fund does not elect to assume the defense of any such
suit, or in case you do not approve of counsel
chosen by the Fund, the Fund will reimburse you, your officers
and directors, or the controlling person or persons named as
defendant or defendants in such suit, for the fees and
expenses of any counsel retained by you or them. The Fund's
indemnification agreement contained in this paragraph 1.9 and the
Fund's representations and warranties in this agree-
ment shall remain operative and in full force and effect
regardless of any investigation made by or on behalf of you, your
officers
and directors, or any controlling person, and shall
survive the delivery of any Shares. This agreement of indemnity
will inure exclusively to your benefit, to the benefit of your
several officers and directors, and their respective estates,
and to the benefit of any controlling persons and their
successors. The Fund agrees promptly to notify you of the
commencement of
any litigation or proceedings against the Fund or
any of its officers or Board members in connection with the issue
and sale of Shares.
1.10 You agree to indemnify, defend and
hold the Fund, its several officers and Board members, and any
person who controls the Fund within the meaning
of Section 15 of the Securities Act of 1933, as amended, free and
harmless from and against any and all claims, demands,
liabilities
and expenses (including the cost of investigating
or defending such claims, demands or liabilities and any counsel
fees incurred in connection therewith) which the Fund, its
officers
or Board members, or any such controlling person,
may incur under the Securities Act of 1933, as amended, or under
common law or otherwise, but only to the extent that such
liability
or expense incurred by the Fund, its officers or
Board members, or such controlling person resulting from such
claims or demands, shall arise out of or be based upon any
untrue, or
alleged untrue, statement of a material fact
contained in information furnished in writing by you to the Fund
specifically for use in the Fund's registration statement and
used
in the answers to any of the items of the registra-
tion statement or in the corresponding statements made in the
prospectus, or shall arise out of or be based upon any omission,
or
alleged omission, to state a material fact in connec-
tion with such information furnished in writing by you to the
Fund and required to be stated in such answers or necessary to
make
such information not misleading. Your agreement
to indemnify the Fund, its officers and Board members, and any
such controlling person, as aforesaid, is expressly conditioned
upon
your being notified of any action brought against
the Fund, its officers or Board members, or any such controlling
person, such notification to be given by letter or telegram
addressed to you at your address set forth above within
ten days after the summons or other first legal process shall
have been served. You shall have the right to control the
defense of
such action, with counsel of your own choosing,
satisfactory to the Fund, if such action is based solely upon
such alleged misstatement or omission on your part, and in any
other
event the Fund, its officers or Board members, or
such controlling person shall each have the right to participate
in the defense or preparation of the defense of any such action.
The failure so to notify you of any such action shall
not relieve you from any liability which you may have to the
Fund, its officers or Board members, or to such controlling
person by
reason of any such untrue, or alleged untrue, state-
ment or omission, or alleged omission, otherwise than on account
of your indemnity agreement contained in this paragraph 1.10.
This
agreement of indemnity will inure exclusively
to the Fund's benefit, to the benefit of the Fund's officers and
Board members, and their respective estates, and to the benefit
of
any controlling persons and their successors.
You agree promptly to notify the Fund of the commencement of any
litigation or proceedings against you or any of your officers or
directors in connection with the issue and sale of
Shares.
1.11 No Shares shall be offered by
either you or the Fund under any of the provisions of this
agreement and
no orders for the purchase or sale of such
Shares hereunder shall be accepted by the Fund if and so long as
the effectiveness of the registration statement then in effect or
any necessary amendments thereto shall be
suspended under any of the provisions of the Securities Act of
1933, as amended, or if and so long as a current prospectus as
required by Section 10 of said Act, as amended, is not
on file with the Securities and Exchange Commission; provided,
however, that nothing contained in this paragraph 1.11 shall in
any
way restrict or have an application to or bearing
upon the Fund's obligation to repurchase any Shares from any
shareholder in accordance with the provisions of the Fund's
prospectus
or charter documents.
1.12 The Fund agrees to advise you
immediately in writing:
(a) of any request by the Securities
and Exchange Commission for amendments to the registration
statement or prospectus then in effect or for additional
information;
(b) in the event of the issuance by
the Securities and Exchange Commission of any stop order
suspending
the effectiveness of the registration statement or
prospectus then in effect or the
initiation of any proceeding for that purpose;
(c) of the happening of any event
which makes
untrue any statement of a material fact
made in the registration statement or prospectus then in effect
or
which requires the making of a change in such regis-
tration statement or prospectus in order
to make the statements therein not misleading; and
(d) of all actions of the Securities and
Exchange Commission with respect to any
amendments to any registration statement or prospectus which may
from time to time be filed with the Securities
and Exchange Commission.
2. Offering Price
Shares of any class of the Fund offered
for sale by you shall be offered for sale at a price per share
(the
"offering price") approximately equal to (a) their net
asset value (determined in the manner set forth in the Fund's
charter documents) plus (b) a sales charge, if any and except to
those
persons set forth in the then-current prospectus,
which shall be the percentage of the offering price of such
Shares as set forth in the Fund's then-current prospectus. The
offering
price, if not an exact multiple of one cent, shall be
adjusted to the nearest cent. In addition, Shares of any class
of the Fund offered for sale by you may be subject to a
contingent
deferred sales charge as set forth in the Fund's then-
current prospectus. You shall be entitled to receive any sales
charge or contingent deferred sales charge in respect of the
Shares. Any payments to dealers shall be governed by a
separate agreement between you and such dealer and the Fund's
then-current prospectus.
3. Term
This agreement shall continue until the
date (the "Reapproval Date") set forth on Exhibit A hereto (and,
if
the Fund has Series, a separate Reapproval Date
shall be specified on Exhibit A for each Series), and thereafter
shall continue automatically for successive annual periods ending
on the day (the "Reapproval Day") of each year set
forth on Exhibit A hereto, provided such continuance is
specifically approved at least annually by (i) the Fund's Board
or (ii) vote
of a majority (as defined in the Investment
Company Act of 1940) of the Shares of the Fund or the relevant
Series, as the case may be, provided that in either event its
continuance also is approved by a majority of the Board
members who are not "interested persons" (as defined in said Act)
of any party to this agreement, by vote cast in person at a
meeting called for the purpose of voting on such
approval. This agreement is terminable without penalty, on 60
days' notice, by vote of holders of a majority of the Fund's or,
as
to any relevant Series, such Series' outstanding
voting securities or by the Fund's Board as to the Fund or the
relevant Series, as the case may be. This agreement is
terminable by
you, upon 270 days' notice, effective on or after
the fifth anniversary of the date hereof. This agreement also
will terminate automatically, as to the Fund or relevant Series,
as
the case may be, in the event of its assignment (as
defined in said Act).
4. Exclusivity
So long as you act as the distributor of
Shares, you shall not perform any services for any entity other
than investment companies advised or administered by
The Dreyfus Corporation. The Fund acknowledges that the persons
employed by you to assist in the performance of your duties under
this agreement may not devote their full time
to such service and nothing contained in this agreement shall be
deemed to limit or restrict your or any of your affiliates right
to
engage in and devote time and attention to other
businesses or to render services of whatever kind or nature.
Please confirm that the foregoing is in
accordance with your understanding and indicate your acceptance
hereof by signing below, whereupon it shall become a
binding agreement between us.
Very truly yours,
DREYFUS NEW JERSEY MUNICIPAL BOND
FUND, INC.
By:_____________________________
Secretary
Accepted:
PREMIER MUTUAL FUND SERVICES, INC.
By:________________________
<PAGE>
EXHIBIT A
Reapproval Date Reapproval Day
--------------- --------------
January 21, 1996 January 21st
<PAGE>
EXHIBIT (6)(b)
APPENDIX A
TO BANK AGREEMENT
FORM OF SERVICE AGREEMENT
Premier Mutual Fund Services, Inc.
One Exchange Place
Tenth Floor
Boston, MA 02109
Gentlemen:
We wish to enter into an Agreement with you for servicing
shareholders
of, and administering shareholder accounts in, certain mutual
fund(s)
managed, advised or administered by The Dreyfus Corporation or
its
subsidiaries or affiliates (hereinafter referred to individually
as the
"Fund" and collectively as the "Funds"). You are the principal
underwriter
as defined in the Investment Company Act of 1940, as amended (the
"Act"),
and the exclusive agent for the continuous distribution of shares
of the
Funds.
The terms and conditions of this Agreement are as follows:
1. We agree to provide shareholder and administrative services
for our
clients who own shares of the Funds ("clients"), which services
may
include, without limitation: 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; providing periodic
statements
and/or reports 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 us; arranging for bank wires; and
providing
such other information and services as you reasonably may
request, to the
extent we are permitted by applicable statute, rule or
regulation. In this
regard, if we are a federally chartered and supervised bank or
other
banking organization, you recognize that we may be subject to the
provisions of the Glass-Steagall Act and other laws, rules,
regulations or
requirements governing, among other things, the conduct of our
activities.
As such, we are restricted in the activities we may undertake and
for
which we may be paid and, therefore, intend to perform only those
activities as are consistent with our statutory and regulatory
obligations.
We represent and warrant to, and agree with you, that the
compensation
payable to us hereunder, together with any other compensation
payable to
us by clients in connection with the investment of their assets
in shares
of the Funds, will be properly disclosed by us to our clients.
2. We shall provide such office space and equipment, telephone
facilities and personnel (which may be all or any part of the
space,
equipment and facilities currently used in our business, or all
or any
personnel employed by us) as is necessary or beneficial for
providing
information and services to each Fund's shareholders, and to
assist you in
servicing accounts of clients. We shall transmit promptly to
clients all
communications sent to us for transmittal to clients by or on
behalf of
you, any Fund, or any Fund's investment adviser, custodian or
transfer or
dividend disbursing agent.
3. We agree that neither we nor any of our employees or agents
are
authorized to make any representation concerning shares of any
Fund,
except those contained in the then current Prospectus for such
Fund,
copies of which will be supplied by you to us in reasonable
quantities upon
request. If we are a federally supervised bank or thrift
institution, we
agree that, in providing services hereunder, we shall at all
times act in
compliance with the Interagency Statement on Retail Sales of
Nondeposit
Investment Products issued by The Board of Governors of the
Federal
Reserve System, the Federal Deposit Insurance Corporation, the
Office of
the Comptroller of the Currency, and the Office of Thrift
Supervision
(February 15, 1994) or any successor interagency requirements as
in force
at the time such services are provided. We shall have no
authority to act
as agent for the Funds or for you.
4. You reserve the right, at your discretion and without
notice, to
suspend the sale of shares or withdraw the sale of shares of any
or all of
the Funds.
5. We acknowledge that this Agreement shall become effective
for a
Fund only when approved by vote of a majority of (i) the Fund's
Board of
Directors or Trustees or Managing General Partners, as the case
may be
(collectively "Directors," individually "Director"), and (ii)
Directors who
are not "interested persons" (as defined in the Act) of the Fund
and have no
direct or indirect financial interest in this Agreement, cast in
person at a
meeting called for the purpose of voting on such approval.
6. This Agreement shall continue until the last day of the
calendar year
next following the date of execution, and thereafter shall
continue
automatically for successive annual periods ending on the last
day of each
calendar year. For all Funds as to which Board approval of this
Agreement
is required, such continuance must be approved specifically at
least
annually by a vote of a majority of (i) the Fund's Board of
Directors and
(ii) Directors who are not "interested persons" (as defined in
the Act) of
the Fund and have no direct or indirect financial interest in
this
Agreement, by vote cast in person at a meeting called for the
purpose of
voting on such approval. For any Fund as to which Board approval
of this
Agreement is required, this Agreement is terminable without
penalty, at
any time, by a majority of the Fund's Directors who are not
"interested
persons" (as defined in the Act) and have no direct or indirect
financial
interest in this Agreement or upon not more than 60 days' written
notice,
by vote of holders of a majority of the Fund's shares. As to all
Funds, this
Agreement is terminable without penalty upon 15 days' notice by
either
party. In addition, you may terminate this Agreement as to any or
all Funds
immediately, without penalty, if the present investment adviser
of such
Fund(s) ceases to serve the Fund(s) in such capacity, or if you
cease to act
as distributor of such Fund(s). Notwithstanding anything
contained herein,
if we fail to perform the shareholder servicing and
administrative
functions contemplated herein by you as to any or all of the
Funds, this
Agreement shall be terminable effective upon receipt of notice
thereof by
us. This Agreement also shall terminate automatically in the
event of its
assignment (as defined in the Act).
7. In consideration of the services and facilities described
herein, we
shall be entitled to receive from you, and you agree to pay to
us, the fees
described as payable to us in each Fund's Service Plan adopted
pursuant to
Rule 12b-1 under the Act, and Prospectus and related Statement of
Additional Information. We understand that any payments pursuant
to this
Agreement shall be paid only so long as this Agreement and such
Plan are
in effect. We agree that no Director, officer or shareholder of
the Fund
shall be liable individually for the performance of the
obligations
hereunder or for any such payments.
8. We agree to provide to you and each applicable Fund such
information
relating to our services hereunder as may be required to be
maintained by
you and/or such Fund under applicable federal or state laws, and
the rules,
regulations, requirements or conditions of applicable regulatory
and self-
regulatory agencies or authorities.
9. This Agreement shall not constitute either party the legal
representative of the other, nor shall either party have the
right or
authority to assume, create or incur any liability or any
obligation of any
kind, express or implied, against or in the name of or on behalf
of the
other party.
10. All notices required or permitted to be given pursuant to
this
Agreement shall be given in writing and delivered by personal
delivery or
by postage prepaid, registered or certified United States first
class mail,
return receipt requested, or by telecopier, telex, telegram or
similar
means of same day delivery (with a confirming copy by mail as
provided
herein). Unless otherwise notified in writing, all notices to you
shall be
given or sent to you at One Exchange Place, Tenth Floor, Boston,
MA 02109,
Attention: President (with a copy to the same address, Attention:
General
Counsel), and all notices to us shall be given or sent to us at
our address
which shall be furnished to you in writing on or before the
effective date
of this Agreement.
11. This Agreement shall be construed in accordance with the
internal
laws of the State of New York, without giving effect to
principles of
conflict of laws.
<PAGE>
APPENDIX A
TO BANK AFFILIATED BROKER-DEALER AGREEMENT
FORM OF SERVICE AGREEMENT
Premier Mutual Fund Services, Inc.
One Exchange Place
Tenth Floor
Boston, MA 02109
Gentlemen:
We wish to enter into an Agreement with you for servicing
shareholders
of, and administering shareholder accounts in, certain mutual
fund(s)
managed, advised or administered by The Dreyfus Corporation or
its
subsidiaries or affiliates (hereinafter referred to individually
as the
"Fund" and collectively as the "Funds"). You are the principal
underwriter
as defined in the Investment Company Act of 1940, as amended (the
"Act"),
and the exclusive agent for the continuous distribution of shares
of the
Funds.
The terms and conditions of this Agreement are as follows:
1. We agree to provide shareholder and administrative services
for our
clients who own shares of the Funds ("clients"), which services
may
include, without limitation: 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; providing periodic
statements
and/or reports 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 us; arranging for bank wires; and
providing
such other information and services as you reasonably may
request, to the
extent we are permitted by applicable statute, rule or
regulation. In this
regard, if we are a subsidiary or affiliate of a federally
chartered and
supervised bank or other banking organization, you recognize that
we may
be subject to the provisions of the Glass-Steagall Act and other
laws,
rules, regulations or requirements governing, among other things,
the
conduct of our activities. As such, we are restricted in the
activities we
may undertake and for which we may be paid and, therefore, intend
to
perform only those activities as are consistent with our
statutory and
regulatory obligations. We represent and warrant to, and agree
with you,
that the compensation payable to us hereunder, together with any
other
compensation payable to us by clients in connection with the
investment
of their assets in shares of the Funds, will be properly
disclosed by us to
our clients.
2. We shall provide such office space and equipment, telephone
facilities and personnel (which may be all or any part of the
space,
equipment and facilities currently used in our business, or all
or any
personnel employed by us) as is necessary or beneficial for
providing
information and services to each Fund's shareholders, and to
assist you in
servicing accounts of clients. We shall transmit promptly to
clients all
communications sent to us for transmittal to clients by or on
behalf of
you, any Fund, or any Fund's investment adviser, custodian or
transfer or
dividend disbursing agent.
3. We agree that neither we nor any of our employees or agents
are
authorized to make any representation concerning shares of any
Fund,
except those contained in the then current Prospectus for such
Fund,
copies of which will be supplied by you to us in reasonable
quantities upon
request. If we are a subsidiary or an affiliate of a federally
supervised
bank or thrift institution, we agree that in providing services
hereunder
we shall at all times act in compliance with the Interagency
Statement on
Retail Sales of Nondeposit Investment Products issued by The
Board of
Governors of the Federal Reserve System, the Federal Deposit
Insurance
Corporation, the Office of the Comptroller of the Currency, and
the Office
of Thrift Supervision (February 15, 1994) or any successor
interagency
requirements as in force at the time such services are provided.
We shall
have no authority to act as agent for the Funds or for you.
4. You reserve the right, at your discretion and without
notice, to
suspend the sale of shares or withdraw the sale of shares of any
or all of
the Funds.
5. We acknowledge that this Agreement shall become effective
for a
Fund only when approved by vote of a majority of (i) the Fund's
Board of
Directors or Trustees or Managing General Partners, as the case
may be
(collectively "Directors," individually "Director"), and (ii)
Directors who
are not "interested persons" (as defined in the Act) of the Fund
and have no
direct or indirect financial interest in this Agreement, cast in
person at a
meeting called for the purpose of voting on such approval.
6. This Agreement shall continue until the last day of the
calendar year
next following the date of execution, and thereafter shall
continue
automatically for successive annual periods ending on the last
day of each
calendar year. For all Funds as to which Board approval of this
Agreement
is required, such continuance must be approved specifically at
least
annually by a vote of a majority of (i) the Fund's Board of
Directors and
(ii) Directors who are not "interested persons" (as defined in
the Act) of
the Fund and have no direct or indirect financial interest in
this
Agreement, by vote cast in person at a meeting called for the
purpose of
voting on such approval. For any Fund as to which Board approval
of this
Agreement is required, this Agreement is terminable without
penalty, at
any time, by a majority of the Fund's Directors who are not
"interested
persons" (as defined in the Act) and have no direct or indirect
financial
interest in this Agreement or, upon not more than 60 days'
written notice,
by vote of holders of a majority of the Fund's shares. As to all
Funds, this
Agreement is terminable without penalty upon 15 days' notice by
either
party. In addition, you may terminate this Agreement as to any or
all Funds
immediately, without penalty, if the present investment adviser
of such
Fund(s) ceases to serve the Fund(s) in such capacity, or if you
cease to act
as distributor of such Fund(s). Notwithstanding anything
contained herein,
if we fail to perform the shareholder servicing and
administrative
functions contemplated herein by you as to any or all of the
Funds, this
Agreement shall be terminable effective upon receipt of notice
thereof by
us. This Agreement also shall terminate automatically in the
event of its
assignment (as defined in the Act).
7. In consideration of the services and facilities described
herein, we
shall be entitled to receive from you, and you agree to pay to
us, the fees
described as payable to us in each Fund's Service Plan adopted
pursuant to
Rule 12b-1 under the Act, and Prospectus and related Statement of
Additional Information. We understand that any payments pursuant
to this
Agreement shall be paid only so long as this Agreement and such
Plan are
in effect. We agree that no Director, officer or shareholder of
the Fund
shall be liable individually for the performance of the
obligations
hereunder or for any such payments.
8. We agree to provide to you and each applicable Fund such
information
relating to our services hereunder as may be required to be
maintained by
you and/or such Fund under applicable federal or state laws, and
the rules,
regulations, requirements or conditions of applicable regulatory
and self-
regulatory agencies or authorities.
9. This Agreement shall not constitute either party the legal
representative of the other, nor shall either party have the
right or
authority to assume, create or incur any liability or any
obligation of any
kind, express or implied, against or in the name of or on behalf
of the
other party.
10. All notices required or permitted to be given pursuant to
this
Agreement shall be given in writing and delivered by personal
delivery or
by postage prepaid, registered or certified United States first
class mail,
return receipt requested, or by telecopier, telex, telegram or
similar
means of same day delivery (with a confirming copy by mail as
provided
herein). Unless otherwise notified in writing, all notices to you
shall be
given or sent to you at One Exchange Place, Tenth Floor, Boston,
MA 02109,
Attention: President (with a copy to the same address, Attention:
General
Counsel), and all notices to us shall be given or sent to us at
our address
which shall be furnished to you in writing on or before the
effective date
of this Agreement.
11. This Agreement shall be construed in accordance with the
internal
laws of the State of New York, without giving effect to
principles of
conflict of laws.
<PAGE>
APPENDIX A
TO BROKER-DEALER AGREEMENT
FORM OF SERVICE AGREEMENT
Premier Mutual Fund Services, Inc.
One Exchange Place
Tenth Floor
Boston, MA 02109
Gentlemen:
We wish to enter into an Agreement with you for servicing
shareholders
of, and administering shareholder accounts in, certain mutual
fund(s)
managed, advised or administered by The Dreyfus Corporation or
its
subsidiaries or affiliates (hereinafter referred to individually
as the
"Fund" and collectively as the "Funds"). You are the principal
underwriter
as defined in the Investment Company Act of 1940, as amended (the
"Act"),
and the exclusive agent for the continuous distribution of shares
of the
Funds.
The terms and conditions of this Agreement are as follows:
1. We agree to provide shareholder and administrative services
for our
clients who own shares of the Funds ("clients"), which services
may
include, without limitation: answering client inquiries about the
Funds;
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 account cash balances
automatically in
shares of one or more of the Funds; providing periodic statements
and/or
reports 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 us; arranging for bank wires; and
providing
such other information and services as you reasonably may
request, to the
extent we are permitted by applicable statute, rule or
regulation. We
represent and warrant to, and agree with you, that the
compensation
payable to us hereunder, together with any other compensation
payable to
us by clients in connection with the investment of their assets
in shares
of the Funds, will be properly disclosed by us to our clients.
2. We shall provide such office space and equipment, telephone
facilities and personnel (which may be all or any part of the
space,
equipment and facilities currently used in our business, or all
or any
personnel employed by us) as is necessary or beneficial for
providing
information and services to each Fund's shareholders, and to
assist you in
servicing accounts of clients. We shall transmit promptly to
clients all
communications sent to us for transmittal to clients by or on
behalf of
you, any Fund, or any Fund's investment adviser, custodian or
transfer or
dividend disbursing agent.
3. We agree that neither we nor any of our employees or agents
are
authorized to make any representation concerning shares of any
Fund,
except those contained in the then current Prospectus for such
Fund,
copies of which will be supplied by you to us in reasonable
quantities upon
request. We shall have no authority to act as agent for the Funds
or for
you.
4. You reserve the right, at your discretion and without
notice, to
suspend the sale of shares or withdraw the sale of shares of any
or all of
the Funds.
5. We acknowledge that this Agreement shall become effective
for a
Fund only when approved by vote of a majority of (i) the Fund's
Board of
Directors or Trustees or Managing General Partners, as the case
may be
(collectively "Directors," individually "Director"), and (ii)
Directors who
are not "interested persons" (as defined in the Act) of the Fund
and have no
direct or indirect financial interest in this Agreement, cast in
person at a
meeting called for the purpose of voting on such approval.
6. This Agreement shall continue until the last day of the
calendar year
next following the date of execution, and thereafter shall
continue
automatically for successive annual periods ending on the last
day of each
calendar year. For all Funds as to which Board approval of this
Agreement
is required, such continuance must be approved specifically at
least
annually by a vote of a majority of (i) the Fund's Board of
Directors and
(ii) Directors who are not "interested persons" (as defined in
the Act) of
the Fund and have no direct or indirect financial interest in
this
Agreement, by vote cast in person at a meeting called for the
purpose of
voting on such approval. For any Fund as to which Board approval
of this
Agreement is required, this Agreement is terminable without
penalty, at
any time, by a majority of the Fund's Directors who are not
"interested
persons" (as defined in the Act) and have no direct or indirect
financial
interest in this Agreement or, upon not more than 60 days'
written notice,
by vote of holders of a majority of the Fund's shares. As to all
Funds, this
Agreement is terminable without penalty upon 15 days' notice by
either
party. In addition, you may terminate this Agreement as to any or
all Funds
immediately, without penalty, if the present investment adviser
of such
Fund(s) ceases to serve the Fund(s) in such capacity, or if you
cease to act
as distributor of such Fund(s). Notwithstanding anything
contained herein,
if we fail to perform the shareholder servicing and
administrative
functions contemplated herein by you as to any or all of the
Funds, this
Agreement shall be terminable effective upon receipt of notice
thereof by
us. This Agreement also shall terminate automatically in the
event of its
assignment (as defined in the Act).
7. In consideration of the services and facilities described
herein, we
shall be entitled to receive from you, and you agree to pay to
us, the fees
described as payable to us in each Fund's Service Plan adopted
pursuant to
Rule 12b-1 under the Act, and Prospectus and related Statement of
Additional Information. We understand that any payments pursuant
to this
Agreement shall be paid only so long as this Agreement and such
Plan are
in effect. We agree that no Director, officer or shareholder of
the Fund
shall be liable individually for the performance of the
obligations
hereunder or for any such payments.
8. We agree to provide to you and each applicable Fund such
information
relating to our services hereunder as may be required to be
maintained by
you and/or such Fund under applicable federal or state laws, and
the rules,
regulations, requirements or conditions of applicable regulatory
and self-
regulatory agencies or authorities.
9. This Agreement shall not constitute either party the legal
representative of the other, nor shall either party have the
right or
authority to assume, create or incur any liability or any
obligation of any
kind, express or implied, against or in the name of or on behalf
of the
other party.
10. All notices required or permitted to be given pursuant to
this
Agreement shall be given in writing and delivered by personal
delivery or
by postage prepaid, registered or certified United States first
class mail,
return receipt requested, or by telecopier, telex, telegram or
similar
means of same day delivery (with a confirming copy by mail as
provided
herein). Unless otherwise notified in writing, all notices to you
shall be
given or sent to you at One Exchange Place, Tenth Floor, Boston,
MA 02109,
Attention: President (with a copy to the same address, Attention:
General
Counsel), and all notices to us shall be given or sent to us at
our address
which shall be furnished to you in writing on or before the
effective date
of this Agreement.
11. This Agreement shall be construed in accordance with the
internal
laws of the State of New York, without giving effect to
principles of
conflict of laws.
<PAGE>
EXHIBIT 11
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 February 6, 1995 in this Registration Statement (Form N-1A
33-19655)
of Dreyfus New Jersey Municipal Bond Fund, Inc.
ERNST & YOUNG LLP
New York, New York
February 28, 1995
<PAGE>
EXHIBIT 15
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
SERVICE PLAN
Introduction: It has been proposed that the
above-captioned investment company (the "Fund") adopt a Service
Plan (the "Plan") in accordance with Rule 12b-1,
promulgated under the Investment Company Act of 1940, as amended
(the "Act"). Under the Plan, the Fund would pay for the costs
and
expenses of preparing, printing and
distributing its prospectuses and statements of additional
information, and would (a) reimburse the Fund's distributor (the
"Distributor") for payments to third parties for distributing
the Fund's shares and servicing shareholder accounts
("Servicing") (the payments in this clause (a) being referred to
as the
"Distributor Payments") and (b) pay The Dreyfus
Corporation, Dreyfus Service Corporation and any affiliate of
either of them (collectively, "Dreyfus") for advertising and
marketing
relating to the Fund and for Servicing (the
payments in this clause (b) being referred to as "Dreyfus
Payments"). If this proposal is to be implemented, the Act and
said Rule
12b-1 require that a written plan describing all
material aspects of the proposed financing be adopted by the
Fund.
The Fund's Board, in considering whether the
Fund should implement a written plan, has requested and evaluated
such information as it deemed necessary to
an informed determination as to whether a written plan should be
implemented and has considered such pertinent factors as it
deemed
necessary to form the basis for a decision to
use assets of the Fund for such purposes.
In voting to approve the implementation of
such a plan, the Board members have concluded, in the exercise of
their reasonable business judgment and in light
of their respective fiduciary duties, that there is a reasonable
likelihood that the plan set forth below will benefit the Fund
and
its shareholders.
The Plan: The material aspects of this Plan
are as follows:
1. The Fund shall pay all costs of
preparing and printing prospectuses and statements of additional
information for regulatory purposes and for distribution to
existing shareholders. The Fund also shall pay an amount of the
costs and expenses in connection with (a) preparing, printing and
distributing the Fund's prospectuses and
statements of additional information used for other purposes and
(b) implementing and operating this Plan, such aggregate amount
not
to exceed in any fiscal year of the Fund the
greater of $100,000 or .005 of 1% of the average daily value of
the Fund's net assets for such fiscal year.
2. (a) The aggregate annual fee the Fund
may pay under this Plan for Distributor Payments and Dreyfus
Payments
is .25 of 1% of the value of the Fund's
average daily net assets for such year (the "Aggregate Amount").
(b) The Fund shall reimburse the
Distributor in respect of Distributor Payments an amount not to
exceed an
annual rate of .25 of 1% of the value of the
Fund's average daily net assets for such year (the "Distributor
Amount").
(c) The Fund shall pay Dreyfus in
respect of Dreyfus Payments an annual fee equal to the difference
between
the Aggregate Amount and the Distributor
Amount for such year.
(d) Each of the Distributor and Dreyfus
may pay one or more securities dealers, financial institutions
(which may include banks) or other industry
professionals, such as investment advisers, accountants and
estate planning firms (severally, a "Service Agent"), a fee in
respect
of the Fund's shares owned by investors with whom
the Service Agent has a Servicing relationship or for whom the
Service Agent is the dealer or holder of record. Each of the
Distributor and Dreyfus shall determine the amounts to
be paid to the Service Agents to which it will make payments
under this Plan and the basis on which such payments will be
made.
Payments to a Service Agent are subject to
compliance by the Service Agent with the terms of any related
Plan agreement between the Service Agent and the Distributor or
Dreyfus, as the case may be.
3. For the purposes of determining the fees
payable under this Plan, the value of the Fund's net assets shall
be computed in the manner specified in the Fund's
charter documents as then in effect for the computation of the
value of the Fund's net assets.
4. The Fund's Board shall be provided, at
least quarterly, with a written report of all amounts expended
pursuant to this Plan. The report shall state the
purpose for which the amounts were expended.
5. This Plan will become effective upon the
later to occur of (i) the consummation of the transactions
contemplated by the Amended and Restated Agreement
and Plan of Merger dated as of December 5, 1993 by and among
Mellon Bank Corporation, Mellon Bank, N.A., XYZ Sub Corporation
and
The Dreyfus Corporation or
(ii) approval by (a) holders of a majority of the Fund's
outstanding shares, and (b) a majority of the Board members,
including a
majority of 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 this
Plan or in any agreements entered into in connection
with this Plan, pursuant to a vote cast in person at a meeting
called for the purpose of voting on the approval of this Plan.
6. This Plan shall continue for a period of
one year from its effective date, unless earlier terminated in
accordance with its terms, and thereafter shall continue
automatically for successive annual periods, provided such
continuance is approved at least annually in the manner provided
in
paragraph 5(b) hereof.
7. This Plan may be amended at any time by
the Fund's Board, provided that (a) any amendment to increase
materially the costs which the Fund may bear
pursuant to this Plan shall be effective only upon approval by a
vote of the holders of a majority of the Fund's outstanding
shares,
and (b) any material amendments of the terms of
this Plan shall become effective only upon approval as provided
in paragraph 5(b) hereof.
8. This Plan is terminable without penalty
at any time by (a) vote of a majority of 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 this Plan or in any agreements entered into in
connection with this Plan, or (b) vote of the holders of
a majority of the Fund's outstanding shares.
Dated: May 31, 1994
<PAGE>
OTHER EXHIBITS (a)
POWER OF ATTORNEY
The undersigned hereby constitutes and appoints Frederick C.
Dey, Eric B. Fischman, Ruth D. Leibert and John E. Pelletier and
each of them, with full power to act without the
other, his or her true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him or
her and
in his or her name, place and stead, in any and all
capacities (until revoked in writing) to sign any and all
amendments to the Registration Statement for each Fund listed on
Schedule
A attached hereto
(including post-effective amendments and amendments thereto), and
to file the same, with all exhibits thereto, and other documents
in connection therewith, with the Securities and
Exchange
Commission, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each and
every act and thing ratifying and confirming all
that said attorneys-in-fact and agents or any of them, or their
or his or her substitute or substitutes, may lawfully do or cause
to
be done by virtue hereof.
\s\Marie E. Connolly
___________________________
Marie E. Connolly
President and Treasurer - Dreyfus New Jersey Municipal Bond,
Fund, Inc.
Dated: October 24, 1994
<PAGE>
POWER OF ATTORNEY
The undersigned hereby constitutes and appoints Frederick C.
Dey, Eric B. Fischman, Ruth D. Leibert and John E. Pelletier and
each of them, with full power to act without the
other, his or her true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him or
her and
in his or her name, place and stead, in any and all
capacities (until revoked in writing) to sign any and all
amendments to the Registration Statement for each Fund listed on
Schedule
A attached hereto
(including post-effective amendments and amendments thereto), and
to file the same, with all exhibits thereto, and other documents
in connection therewith, with the Securities and
Exchange
Commission, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each and
every act and thing ratifying and confirming all
that said attorneys-in-fact and agents or any of them, or their
or his or her substitute or substitutes, may lawfully do or cause
to
be done by virtue hereof.
\s\Joseph S. DiMartino
_________________________________
Joseph S. DiMartino, Board Member
Dated February 8, 1995
<PAGE>
POWER OF ATTORNEY
The undersigned hereby constitutes and appoints Frederick C.
Dey, Eric B. Fischman, Ruth D. Leibert and John E. Pelletier and
each of them, with full power to act without the
other, his or her true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him or
her and
in his or her name, place and stead, in any and all
capacities (until revoked in writing) to sign any and all
amendments to the Registration Statement for each Fund listed on
Schedule
A attached hereto,
(including post-effective amendments and amendments thereto), and
to file the same, with all exhibits thereto, and other documents
in connection therewith, with the Securities and
Exchange Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do and
perform
each and every act and thing ratifying and
confirming all that said attorneys-in-fact and agents or any of
them, or their or his or her substitute or substitutes, may
lawfully
do or cause to be done by virtue
hereof.
\s\Gordon J. Davis \s\Daniel Rose
_______________________________ _____________________________
Gordon J. Davis, Board Member Daniel Rose, Board Member
\s\David P. Feldman \s\Sander Vanocur
________________________________ ______________________________
David P. Feldman, Board Member Sander Vanocur, Board Member
\s\Lynn Martin \s\Anne Wexler
________________________________ ______________________________
Lynn Martin, Board Member Anne Wexler, Board Member
\s\Eugene McCarthy \s\Rex Wilder
________________________________ ______________________________
Eugene McCarthy, Board Member Rex Wilder, Board Member
Dated: August 30, 1994
<PAGE>
EXHIBIT A
Dreyfus New Jersey Municipal Bond Fund, Inc.
Dreyfus New York Insured Municipal Bond Fund
<PAGE>
OTHER EXHIBITS(b)
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
Certificate of Secretary
The undersigned, Ruth D. Leibert, Assistant
Secretary of Dreyfus New Jersey Municipal Bond Fund, Inc. (the
"Fund"), hereby certifies that set forth below is a
true and correct copy of the resolution adopted by the Fund's
Board of Directors pursuant to written consent dated August 30,
1994.
RESOLVED, that the Registration Statement and any and all
amendments and supplements thereto, may be signed by any one
of Frederick C. Dey, Eric B.Fischman, Ruth D. Leibert and
John Pelletier as the attorney-in-fact for the proper officers of
the Fund, with full power of substitution and resubstitution; and
that the appointment of each of such persons as such attorney-in-
fact hereby is authorized and approved; and that such attorneys-
in-fact, and each of them, shall have full power and authority to
do and perform each and every act and thing requisite and
necessary to be done in connection with such Registration
Statement and any and all amendments and supplements thereto,
as fully to all intents and purposes as the officer, for whom
he is acting as attorney-in-fact, might or could do in person.
IN WITNESS WHEREOF, I have hereunto signed my name and
affixed the seal of the Fund on February 27, 1994.
\s\Ruth D. Leibert
__________________________
Ruth D. Leibert
Assistant Secretary
(SEAL)
