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AIM TAX-EXEMPT FUNDS, INC.
AIM TAX-EXEMPT CASH FUND
AIM TAX-FREE INTERMEDIATE SHARES
AIM TAX-EXEMPT BOND FUND OF CONNECTICUT
SUPPLEMENT DATED APRIL 12, 1996
TO THE PROSPECTUS DATED JULY 31, 1995,
AS SUPPLEMENTED OCTOBER 19, 1995, NOVEMBER 17, 1995
DECEMBER 27, 1995 AND FEBRUARY 12, 1996
This Supplement replaces in their entirety the Supplements dated February 12,
1996 and December 27, 1995.
The sections in the Investor's Guide starting at page A-1 relating to the
timing and pricing of orders for purchases, exchanges and redemptions of shares
are revised to reflect the following:
The net asset value per share (or share price) of each AIM Fund
other than AIM MONEY MARKET FUND will be determined as of the close of
trading of the New York Stock Exchange, which is generally 4:00 p.m.
Eastern Time ("NYSE Close"), on each business day of a fund. The net
asset value (or share price) of AIM MONEY MARKET FUND will be
determined as of 12:00 noon or NYSE Close on each business day of the
fund.
Shares of the AIM Funds are purchased, exchanged or redeemed at
the net asset value next determined after receipt of an order for
purchase, exchange or redemption in proper form. Accordingly, orders
for purchases, exchanges and redemptions of shares of an AIM Fund
other than AIM MONEY MARKET FUND received prior to NYSE Close on any
business day of an AIM Fund will be confirmed at the price determined
as of close of that day. Orders received after NYSE Close will be
confirmed at the price determined on the next business day of the AIM
Fund. Orders for purchases, exchanges and redemptions of shares of
AIM MONEY MARKET FUND received prior to 12:00 noon or NYSE Close on
any business day of the fund will be confirmed at the price next
determined.
The seventh paragraph under the caption "AIM Tax-Exempt Bond Fund of
Connecticut" on page 11 is revised by inserting a new sentence immediately
following the fourth sentence in the paragraph, which new sentence reads in its
entirety as follows:
"For purposes of the foregoing percentage limitations,
municipal bonds (i) which have been collateralized with U.S.
Government securities held in escrow until the municipal securities'
refunding date or final maturity, but (ii) which have not been
re-rated by a NRSRO, will be treated by the Fund as the equivalent
of Aaa/AAA rated securities."
The third sentence in the paragraph under the caption "Investment Program - AIM
Tax-Exempt Bond Fund of Connecticut - Interest Rate Futures Contracts and
Related Options" on page 12 is deleted and replaced in its entirety by the
following:
"The Fund may purchase and sell futures contracts and related
options in order to hedge the value of its portfolio against changes
in market conditions."
The third paragraph under the caption "Purchases at Net Asset Value" on page
A-6 is revised by changing item (h) to read in its entirety as follows:
"(h) certain broker-dealers, investment advisers or bank trust
departments that provide asset allocation, similar specialized
investment services or investment company transaction services for
their customers, that charge a minimum annual fee for such services,
and that have entered into an agreement with AIM Distributors
with respect to their use of the AIM Funds in connection with such
services."
The fourth paragraph under the caption "Purchases at Net Asset Value" on page
A-6 is revised by deleting the word "or" before item (3), and inserting the
following after item (3):
"or (4) all of the plan's transactions are executed through a
single omnibus account per fund and the financial institution or
service organization has entered into an agreement with AIM
Distributors with respect to their use of the AIM Funds in connection
with such accounts."
