<PAGE>
- --------------------------------------------------------------------------------
TAX EXEMPT PROCEEDS FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Tax Exempt Investments (13.15%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,000,000 Allegheny County Port Authority GAN 06/30/00 3.23% $ 3,010,225 MIG-1
2,000,000 Indiana Bond Advanced Funding - Series 1999A-2 01/19/00 2.94 2,000,453 MIG-1 SP-1+
3,000,000 Kentucky Assets/Liability Comm. TRAN 06/28/00 3.32 3,012,273 MIG-1 SP-1+
2,000,000 Kentucky Interlocal School TRAN 06/30/00 3.44 2,004,718 MIG-1 SP-1+
1,000,000 Michigan Municipal Bond Authority - Notes Series A-1 06/30/00 3.37 1,002,692 SP-1+
3,725,000 Olathe, KS Temp Notes 06/01/00 3.83 3,730,127 MIG-1
5,000,000 State of Texas TRAN 08/31/00 3.64 5,025,454 MIG-1 SP-1+
2,100,000 University of Cincinnati General Receipts BAN - Series A 12/21/00 3.84 2,106,805 MIG-1 SP-1+
2,900,000 University of Cincinnati General Receipts BAN - Series A 03/01/00 2.88 2,900,937 MIG-1 SP-1+
2,800,000 Wisconsin School Districts Cash Flow 11/01/00 4.00 2,800,000 MIG-1
1,350,000 Wisconsin School Districts Cash Flow 09/28/00 3.80 1,350,000 MIG-1
----------- -----------
28,875,000 Total Other Tax Exempt Investments 28,943,684
----------- -----------
<CAPTION>
Other Variable Rate Demand Instruments (58.86%) (b)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,365,000 Bloomington, IL Normal Airport Authority - Series 1995A 01/01/13 5.40% $ 1,365,000 VMIG-1
1,400,000 Burke County, GA PCRB (Georgia Power Co. Vogtle Project) 07/01/24 4.90 1,400,000 P1 A1
2,975,000 Capital Realty Investment MHRB COPS
LOC Swiss Bank 12/01/04 5.75 2,975,000 VMIG-1 A1+
3,650,000 City & County of Denver, CO Refunding MHRB
(Cottonwood Creek Project)
LOC General Electric Capital Corporation 04/15/14 4.90 3,650,000 A1+
5,000,000 City of Burlington, KS Power and Light 09/01/15 5.60 5,000,000 VMIG-1 A1
1,200,000 City of Georgetown, KY
LOC PNC Bank, N.A. 06/01/04 5.55 1,200,000 VMIG-1
1,200,000 City of Philadelphia, PA Water & Waste
Insured by AMBAC Indemnity Corp. 08/01/27 5.15 1,200,000 VMIG-1 A1+
10,070,000 Cohasset, MN RB (Minnesota Power & Light)
LOC ABN AMRO Bank 06/01/20 4.70 10,070,000 A1+
2,000,000 Columbia, AL IDRB PCRB
(Alabama Power Company Project) - Series A 11/01/21 5.25 2,000,000 VMIG-1 A1+
2,800,000 County of Cuyahoga, OH HRB (Cleveland Clinic) - Series 1997C 01/01/16 5.65 2,800,000 VMIG-1 A1+
4,500,000 County of Hamilton, OH Hospital Facilities RB - Series1997B
Insured by MBIA Insurance Corp. 01/01/18 5.35 4,500,000 VMIG-1 A1+
600,000 DeKalb County, GA Development Authority IDRB (Pet Inc. Project)
LOC Credit Suisse First Boston 02/01/02 5.55 600,000 P1
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
TAX EXEMPT PROCEEDS FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Variable Rate Demand Instruments (Continued) (b)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 600,000 DeKalb County, GA Development Authority IDRB (Pet Inc. Project)
LOC Credit Suisse First Boston 02/01/04 5.55% $ 600,000 P1
430,000 DeKalb County, GA Development Authority PCRB
(General Motors Corp.) 11/01/03 5.15 430,000 VMIG-1
7,150,000 DeKalb County, GA Housing Authority
LOC Bank of Montreal 12/01/07 5.40 7,150,000 A1+
700,000 Delaware County, PA
Regional Finance Authority Local Government RB
LOC Credit Suisse First Boston 12/01/18 5.20 700,000 VMIG-1 A1+
2,000,000 District of Columbia GO Bond
LOC Bank of Nova Scotia 10/01/07 5.15 2,000,000 P1 A1
1,800,000 Dorm Authority of the State of NY (Memorial Sloan Kettering)
LOC Chase Manhattan 07/01/19 4.95 1,800,000 VMIG-1 A1+
10,000,000 Emmaus, PA General Authority Local Government (Pool Proj. C16)
LOC Kredietbank 03/01/24 5.65 10,000,000 A1
2,200,000 Greystone RB Certificate
(Variable Senior Certificates of Beneficial Ownership)
LOC Credit Suisse First Boston 05/01/28 5.63 2,200,000 VMIG-1 A1+
3,200,000 Harris County, TX ID Corp. RB Baytank
LOC Rabobank Nederlands 02/01/20 5.80 3,200,000 A1+
1,000,000 Hammond, IN (Amoco Oil Project) 02/01/22 4.85 1,000,000 VMIG-1 A1+
3,600,000 Illinois Development Finance Authority RB
(Glenwood School for Boys)
LOC Harris Trust 02/01/33 5.35 3,600,000 A1+
3,300,000 Illinois Educational Facilities Authority
(Chicago Children's Museum) - Series 1994
LOC National Bank of Detroit 02/01/28 5.35 3,300,000 VMIG-1 A1+
2,400,000 Indiana HEFA (Rehabilitation Hospital of Indiana)
LOC National Bank of Detroit 11/01/20 5.15 2,400,000 VMIG-1
2,000,000 Kentucky EDFA (Pooled Hospital Loan Program)
Insured by Capital Reinsurance 08/01/18 5.60 2,000,000 A1+
695,000 Lancaster, PA Higher Education
LOC Chase Manhattan Bank, N.A. 04/15/27 5.75 695,000 VMIG-1 A1
1,900,000 Lincoln Cty, WY Pollution Control (Exxon 85) 08/01/15 4.85 1,900,000 A1+
6,680,000 Lisle, IL Multi Family RB
Guaranteed by Fannie Mae 09/15/26 5.50 6,680,000 A1+
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Variable Rate Demand Instruments (Continued) (b)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,000,000 M-S-R Public Power Agency, CA (San Juan Project Lien)
Insured by MBIA Insurance Corp. 07/01/22 4.35% $ 5,000,000 VMIG-1 A1+
1,000,000 Maricopa County, AZ PCRB
LOC Bank of America 05/01/29 4.80 1,000,000 P1 A1+
2,500,000 Maryland State IDA Economic Development RB (Johnson Control Inc.) 12/01/03 5.70 2,500,000 VMIG-1
3,000,000 Massachusetts Health & Educational Facilities
(Capital Asset Program) - Series C
Insured by MBIA Insurance Corp. 07/01/05 4.90 3,000,000 VMIG-1 A1+
1,000,000 Michigan Strategic Fund PCR (Consumer's Power Co. Project)
Insured by AMBAC Indemnity Corp. 04/15/18 4.90 1,000,000 VMIG-1
2,760,000 Missouri HEFA (Washington University) 09/01/10 5.65 2,760,000 VMIG-1 A1+
4,420,000 Montgomery County, MD Housing Opportunities Commission MHRB
(Oakwood-Gainesburg)
Guaranteed by Freddie Mac 11/01/07 5.35 4,420,000 A1+
5,250,000 New York State Energy R&D Electric & Gas
LOC Bank One 10/01/29 4.70 5,250,000 VMIG-1 A1+
1,300,000 Ohio Air Quality Development (Cincinnati Gas & Electric) - Series B
LOC Morgan Guaranty Trust Company 12/01/15 4.50 1,300,000 A1+
1,800,000 Pennsylvania State Turnpike Commission 06/01/28 4.80 1,800,000 VMIG-1 A1+
2,400,000 Raleigh Durham, NC Airport (American Airlines Proj.) - Series 1995B
LOC Bank of America 11/01/15 4.95 2,400,000 A1+
900,000 Reading, PA (York County General Authority)
Insured by AMBAC Indemnity Corp. 09/01/26 5.35 900,000 A1+
1,700,000 Roanoke, VA IDA HRB (Carilion Health Systems) 07/01/27 4.80 1,700,000 VMIG-1 A1+
5,000,000 Roanoke, VA IDA (Roanoke Memorial Hospital) 07/01/19 4.80 5,000,000 VMIG-1 A1
1,600,000 Southwest, TX Higher Education Authority Inc.
(Southern Methodist University)
LOC Landesbank Hessen 07/01/15 4.95 1,600,000 VMIG-1
1,800,000 Sweetwater County, WY Pacific
LOC Deutsche Bank 12/01/14 4.75 1,800,000 P1 A1+
500,000 University of Michigan Medical Service Plan 12/01/21 4.80 500,000 VMIG-1 A1+
1,200,000 York County, PA IDA PCRB (Philadelphia Electric Company)
LOC Toronto-Dominion Bank 08/01/16 4.70 1,200,000 P1 A1+
------------ ------------
129,545,000 Total Other Variable Rate Demand Instruments 129,545,000
------------ ------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
TAX EXEMPT PROCEEDS FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
DECEMBER 31, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Put Bonds (9.13%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 7,500,000 Connecticut State Special Assessment Unemployment Compensation
Advance Fund RB - Series 1993C
Insured by FGIC 07/01/00 3.38% $ 7,500,000 VMIG-1 A1+
2,000,000 City of Chicago GO
LOC Landesbank Hessen 12/07/00 3.90 2,000,000 VMIG-1 SP-1+
2,000,000 Summit County, OH 06/01/00 3.15 2,004,764 MIG-1 SP-1+
6,885,000 Vermont State Educational & Health Building Finance Agency
(Middlebury College) 11/01/00 3.85 6,885,000 A1+
1,700,000 Vermont State Educational & Health Building Finance Agency
(Middlebury College) 05/01/00 3.15 1,700,000 A1+
------------ ------------
20,085,000 Total Put Bonds 20,089,764
------------ ------------
<CAPTION>
Revenue Bonds (0.91%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 State of Oregon - Single Family Housing
Collaterized by U.S. Government Agencies 11/02/00 3.85% $ 2,000,000 MIG-1
------------ ------------
2,000,000 Total Revenue Bonds 2,000,000
------------ ------------
<CAPTION>
Tax Exempt Commercial Paper (17.99%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,000,000 City of Houston, TX - Series C 02/09/00 3.75% $ 5,000,000 P1 A1+
7,000,000 Development Authority of Burke County, GA PCRB
Insured by AMBAC Indemnity Corp. 02/08/00 3.85 7,000,000 VMIG-1 A1+
3,000,000 Illinois HFA RB (Rush-Presbyterian St. Luke's)
LOC Northern Trust 02/16/00 3.20 3,000,000 VMIG-1 A1+
5,000,000 Intermountain Power Agency Power Supply RB - Series 1985 F
Insured by AMBAC Indemnity Corp. 02/09/00 3.45 5,000,000 VMIG-1 A1+
2,000,000 Maricopa County, AZ PCRB (Southern California Edison Company) 02/16/00 3.90 2,000,000 P1 A1
5,000,000 Norfolk, VA Airport Authority - Series A
LOC First Union National Bank 03/07/00 3.40 5,000,000 P1 A1
5,600,000 Puerto Rico Government Development Bank 01/20/00 3.65 5,600,000 A1+
2,000,000 Puerto Rico Government Development Bank 02/09/00 3.40 2,000,000 A1+
5,000,000 State of Wisconsin 01/11/00 3.90 5,000,000 P1 A1+
------------ ------------
39,600,000 Total Tax Exempt Commercial Paper 39,600,000
------------ ------------
Total Investments (100.04%) (Cost $220,178,448+) 220,178,448
Liabilities in Excess of Cash and Other Assets (-0.04%) ( 79,449)
------------
Net Assets (100.00%) 220,119,609 Shares Outstanding (Note 3) $ 220,098,999
============
Net Asset Value, offering and redemption price per share $ 1.00
============
+ Aggregate cost for Federal income tax purposes is identical.
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings are those of the holding company of the bank whose letter of
credit guarantees the issue or the insurance company who insures the issue.
All letters of credit and insurance are irrevocable and direct pay covering
both principal and interest. Certain issuers have either a line of credit,
a liquidity facility, a standby purchase agreement or some other financing
mechanism to ensure the remarketing of the securities. This is not a
guarantee and does not serve to insure or collateralize the issue.
(b) Interest rates are adjustable on a daily, weekly or monthly basis. The rate
shown is the rate in effect at the date of this statement.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note HRB = Hospital Revenue Bond
COPS = Certificates of Participations IDA = Industrial Development Authority
EDFA = Economic Development Finance Authority IDRB = Industrial Development Revenue Bond
FGIC = Financial Guaranteed Insurance Company LOC = Letter of Credit
GAN = Grant Anticipation Note MHRB = Multi-family Housing Revenue Bond
GO = General Obligation PCRB = Pollution Control Revenue Bond
HFA = Housing Finance Authority RB = Revenue Bond
HEFA = Health and Education Facilities Authority TRAN = Tax and Revenue Anticipation Note
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
TAX EXEMPT PROCEEDS FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Interest income............................................................................. $ 3,538,431
Expenses (Note 2)........................................................................... ( 413,781)
------------
Net investment income....................................................................... 3,124,650
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments..................................................... ( 15,960)
------------
Net increase in net assets from operations.................................................. $ 3,108,690
============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
TAX EXEMPT PROCEEDS FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Six Months
Ended Year
December 31, 1999 Ended
(Unaudited) June 30, 1999
--------- -------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income............................................ $ 3,124,650 $ 5,589,202
Net realized gain (loss) on investments.......................... ( 15,960) 49
-------------- --------------
Net increase in net assets from operations....................... 3,108,690 5,589,251
Dividends to shareholders from net investment income................ ( 3,124,650)* ( 5,589,202)*
Net increase (decrease) from capital share transactions (Note 3).... 30,579,135 ( 2,480,032)
-------------- --------------
Total increase (decrease) in net assets...................... 30,563,175 ( 2,479,983)
Net assets:
Beginning of period.............................................. 189,535,824 192,015,807
-------------- --------------
End of period.................................................... $ 220,098,999 $ 189,535,824
============== ==============
</TABLE>
* Designated as exempt-interest dividends for federal income tax purpose.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
TAX EXEMPT PROCEEDS FUND, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
================================================================================
1. Summary of Accounting Policies.
Tax Exempt Proceeds Fund, Inc. is a no-load, diversified, open-end management
investment company registered under the Investment Company Act of 1940. This
Fund is a short-term, tax-exempt money market fund. Its financial statements are
prepared in accordance with generally accepted accounting principles for
investment companies as follows:
a) Valuation of Securities -
Investments are valued at amortized cost. Under this valuation method, a
portfolio instrument is valued at cost and any discount or premium is
amortized on a constant basis to the maturity of the instrument. The
maturity of variable rate demand instruments is deemed to be the longer of
the period required before the Fund is entitled to receive payment of the
principal amount or the period remaining until the next interest rate
adjustment.
b) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its tax exempt and taxable income, if any, to its shareholders.
Therefore, no provision for federal income tax is required.
c) Dividends and Distributions -
Dividends from investment income (excluding capital gains and losses, if
any, and amortization of market discount) are declared daily and paid
monthly. Distributions of net capital gains, if any, realized on sales of
investments are made after the close of the Fund's fiscal year, as declared
by the Fund's Board of Directors.
d) Use of Estimates -
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that effect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results
could differ from those estimates.
e) General -
Securities transactions are recorded on a trade date basis. Interest income
is accrued as earned. Realized gains and losses from securities
transactions are recorded on the identified cost basis.
2. Investment Management Fees and Other Transactions with Affiliates.
Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management, L.P. (the "Manager") at the annual rate of
.40 of 1% per annum of the Fund's average daily net assets up to $250 million;
.35 of 1% per annum of the average daily net assets between $250 million and
$500 million; and .30 of 1% per annum of the average daily net assets over $500
million. The Management Contract also provides that the Manager will bear the
cost of all other expenses of the Fund. Therefore, the fee payable under the
Management Contract will be the only expense of the Fund.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates.
(Continued)
Pursuant to a Distribution Plan adopted under Securities and Exchange Commission
Rule 12b-1, the Fund and the Manager have entered into a Distribution Agreement.
The Fund's Board of Directors has adopted the plan in case certain expenses of
the Fund are deemed to constitute indirect payments by the Fund for distribution
expenses.
3. Capital Stock.
At December 31, 1999, 20,000,000,000 shares of $.001 par value stock were
authorized and paid in capital amounted to $220,119,609. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year
December 31, 1999 Ended
(Unaudited) June 30, 1999
--------- -------------
<S> <C> <C>
Sold...................................... 384,499,399 550,776,547
Issued on reinvestment of dividends....... 841,872 1,686,931
Redeemed.................................. ( 354,762,136) ( 554,943,510)
-------------- --------------
Net increase (decrease)................... 30,579,135 ( 2,480,032)
============== ==============
<CAPTION>
4. Liabilities.
At December 31, 1999, the Fund had the following liabilities:
<S> <C>
Payables for securities purchased......... $ 2,000,000
Accrued management fee.................... 79,038
Dividends payable......................... 515,601
--------------
Total liabilities...................... $ 2,594,639
==============
</TABLE>
5. Sales of Securities.
Accumulated undistributed realized losses at December 31, 1999 amounted to
$20,610. This amount represents tax basis capital losses which may be carried
forward to offset future gains. Such losses expire on June 30, 2007.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
TAX EXEMPT PROCEEDS FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
6. Financial Highlights.
Six Months Year Ended June 30,
Ended ----------------------------------------------------------
December 31, 1999 1999 1998 1997 1996 1995
----------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income.................... 0.015 0.029 0.033 0.032 0.033 0.032
Less distributions:
Dividends from net investment income..... ( 0.015) ( 0.029) ( 0.033) ( 0.032) ( 0.033) ( 0.032)
--------- -------- -------- -------- -------- --------
Net asset value, end of period............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ======== ======== ========
Total Return............................... 3.04%* 2.92% 3.31% 3.31% 3.31% 3.22%
Ratios/Supplemental Data
Net assets, end of period (000)............ $ 220,099 $ 189,536 $ 192,016 $ 199,050 $ 254,251 $ 213,134
Ratios to average net assets:
Expenses................................. 0.40%* 0.40% 0.40% 0.40% 0.40% 0.40%
Net investment income.................... 3.02%* 2.89% 3.26% 3.18% 3.26% 3.22%
</TABLE>
* Annualized
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------
This report is submitted for the general information
of the shareholders of the Fund. It is not
authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an
effective prospectus, which includes information
regarding the Fund's objectives and policies,
experience of its management, marketability of
shares, and other information.
- ------------------------------------------------------
Tax Exempt Proceeds Fund, Inc.
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management, L.P.
600 Fifth Avenue
New York, New York 10020
Custodian
State Street Kansas City
801 Pennsylvania
Kansas City, Missouri 64105
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, New York 10020
TEP1299S
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
TAX EXEMPT
PROCEEDS
FUND, INC.
Semi-Annual Report
December 31, 1999
(Unaudited)
- --------------------------------------------------------------------------------
<PAGE>
