EXHIBIT N-1

FUNDAMENTAL INVESTMENT RESTRICTIONS RECOMMENDED TO BE ELIMINATED AS DISCUSSED IN PROPOSAL 5

	ELIMINATE
	ADDRESSED BY THE 1940 ACT OR SEC		PREEMPTED BY NSMIA
	STAFF INTERPRETATIONS
Franklin California Tax-Free Income   Fund, Inc.
Franklin California Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with Management	4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin California Tax-Free Trust
Franklin California Insured Tax-Free Income	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
Fund	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with Management	4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin California Intermediate-Term Tax-	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
Free Income Fund	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with Management	4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin California Tax-Exempt Money Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with Management	4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Custodian Funds, Inc.
Franklin DynaTech Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Unseasoned Issuers

N-1-1

	ELIMINATE
	ADDRESSED BY THE 1940 ACT OR SEC		PREEMPTED BY NSMIA
	STAFF INTERPRETATIONS
Franklin Growth Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Unseasoned Issuers
Franklin Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Unseasoned Issuers
Franklin U.S. Government Securities Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Unseasoned Issuers
Franklin Utilities Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Unseasoned Issuers
Franklin High Income Trust
Franklin High Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
			3).	Management Ownership of Securities
Franklin Investors Securities Trust
Franklin Adjustable U.S. Government	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
Securities Fund	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Unseasoned Issuers

N-1-2

	ELIMINATE
	ADDRESSED BY THE 1940 ACT OR SEC		PREEMPTED BY NSMIA
	STAFF INTERPRETATIONS
Franklin Equity Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Unseasoned Issuers
Franklin Limited Maturity U.S. Government	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
Securities Fund	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Unseasoned Issuers
Franklin Municipal Securities Trust
Franklin California High Yield Municipal	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
Fund	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Tennessee Municipal Bond Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Managemen	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Mutual Series Fund, Inc.
Mutual Beacon Fund	1).	Sell Short and Use Margin	1).	Invest in Oil, Gas or Mineral Interests
Mutual Discovery Fund	1).	Sell Short and Use Margin	1).	Invest in Oil, Gas or Mineral Interests
Mutual European Fund	1).	Sell Short and Use Margin	1).	Invest in Oil, Gas or Mineral Interests
Mutual Financial Services Fund	1).	Sell Short and Use Margin	1).	Invest in Oil, Gas or Mineral Interests
Mutual Qualified Fund	1).	Sell Short and Use Margin	1).	Invest in Oil, Gas or Mineral Interests
Mutual Shares Fund	1).	Sell Short and Use Margin	1).	Invest in Oil, Gas or Mineral Interests

N-1-3

	ELIMINATE
	ADDRESSED BY THE 1940 ACT OR SEC		PREEMPTED BY NSMIA
	STAFF INTERPRETATIONS
Franklin New York Tax-Free Income Fund
	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with Management	4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin New York Tax-Free Trust
Franklin New York Insured Tax-Free Income	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
Fund	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin New York Intermediate-Term Tax	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
Free Income Fund	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin New York Limited-Term Tax-Free	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
Income Fund	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin New York Tax-Exempt Money Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with Management	4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Real Estate Securities Trust
Franklin Real Estate Securities Fund	1).	Sell Short and Use Margin	1).	Invest to Exercise Control
	2).	Invest in Restricted or Illiquid Securities	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Unseasoned Issuers

N-1-4

	ELIMINATE
	ADDRESSED BY THE 1940 ACT OR SEC		PREEMPTED BY NSMIA
	STAFF INTERPRETATIONS
Franklin Strategic Mortgage Portfolio
	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Unseasoned Issuers
Franklin Strategic Series
Franklin Biotechnology Discovery Fund	1).	Invest in Restricted or Illiquid Securities	1).	Invest to Exercise Control
			2).	Invest in Other Investment Companies
Franklin Blue Chip Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest in Oil, Gas or Mineral Interests
Franklin Flex Cap Growth Fund	1).	Sell Short and Use Margin	1).	Invest to Exercise Control
	2).	Invest in Restricted or Illiquid Securities	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Unseasoned Issuers
Franklin Global Communications Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with Management	4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Unseasoned Issuers
Franklin Global Health Care Fund	1).	Sell Short and Use Margin	1).	Invest to Exercise Control
	2).	Invest in Restricted or Illiquid Securities	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Unseasoned Issuers
Franklin Natural Resources Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with Management	4).	Invest in Oil, Gas or Mineral Interests
			5).	Unseasoned Issuers

N-1-5

	ELIMINATE
	ADDRESSED BY THE 1940 ACT OR SEC		PREEMPTED BY NSMIA
	STAFF INTERPRETATIONS
Franklin Small-Mid Cap Growth Fund	1).	Sell Short and Use Margin	1).	Invest to Exercise Control
	2).	Invest in Restricted or Illiquid Securities	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Unseasoned Issuers
Franklin Strategic Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
Franklin Tax-Free Trust
Franklin Alabama Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Arizona Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Colorado Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Connecticut Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests

N-1-6

	ELIMINATE
	ADDRESSED BY THE 1940 ACT OR SEC		PREEMPTED BY NSMIA
	STAFF INTERPRETATIONS
Franklin Double Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Federal Intermediate-Term Tax-Free	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
Income Fund	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with Management	4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Florida Insured Tax-Free Income	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
Fund	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with Management	4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Florida Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Georgia Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin High Yield Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests

N-1-7

	ELIMINATE
	ADDRESSED BY THE 1940 ACT OR SEC		PREEMPTED BY NSMIA
	STAFF INTERPRETATIONS
Franklin Insured Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Kentucky Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Louisiana Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Maryland Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Massachusetts Insured Tax-Free	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
Income Fund	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Michigan Insured Tax-Free Income	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
Fund	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests

N-1-8

	ELIMINATE
	ADDRESSED BY THE 1940 ACT OR SEC		PREEMPTED BY NSMIA
	STAFF INTERPRETATIONS
Franklin Minnesota Insured Tax-Free Income	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
Fund	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Missouri Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin New Jersey Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin North Carolina Tax-Free Income	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
Fund	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Ohio Insured Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Oregon Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interest

N-1-9

	ELIMINATE
	ADDRESSED BY THE 1940 ACT OR SEC		PREEMPTED BY NSMIA
	STAFF INTERPRETATIONS
Franklin Pennsylvania Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Virginia Tax-Free Income Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Franklin Templeton Fund Allocator Series
Franklin Templeton Conservative Target Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest in Oil, Gas or Mineral Interests
Franklin Templeton Growth Target Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest in Oil, Gas or Mineral Interests
Franklin Templeton Moderate Target Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest in Oil, Gas or Mineral Interests
Franklin Templeton International Trust
Templeton Foreign Smaller Companies Fund	1).	Sell Short and Use Margin	1).	Invest to Exercise Control
	2).	Invest in Restricted or Illiquid Securities	2).	Invest in Other Investment Companies
			3).	Management Ownership of Securities
			4).	Invest in Oil, Gas or Mineral Interests
			5).	Unseasoned Issuers
Franklin Templeton Global Trust
Franklin Templeton Hard Currency Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
			3).	Invest in Oil, Gas or Mineral Interests
			4).	Unseasoned Issuers
Franklin Templeton Money Fund Trust
Franklin Templeton Money Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with Management	4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests

N-1-10

	ELIMINATE
	ADDRESSED BY THE 1940 ACT OR SEC		PREEMPTED BY NSMIA
	STAFF INTERPRETATIONS
Franklin Value Investors Trust
Franklin Balance Sheet Investment Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with Management	4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Invest in Warrants
Franklin MicroCap Value Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Principal Transactions with Management	3).	Management Ownership of Securities
			4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			6).	Invest in Warrants
Franklin Small Cap Value Fund			1).	Invest in Oil, Gas or Mineral Interests
Institutional Fiduciary Trust
Franklin Cash Reserves Fund	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with  Management	4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
Money Market Portfolio	1).	Mortgage, Pledge of Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with Management	4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests
			[6).	Unseasoned Issuers]
The Money Market Portfolios
The Money Market Portfolio	1).	Mortgage, Pledge or Hypothecate	1).	Invest to Exercise Control
	2).	Sell Short and Use Margin	2).	Invest in Other Investment Companies
	3).	Invest in Restricted or Illiquid Securities	3).	Management Ownership of Securities
	4).	Principal Transactions with Management	4).	Invest in Put and Call Options
			5).	Invest in Oil, Gas or Mineral Interests

N-1-11

	ELIMINATE
	ADDRESSED BY THE 1940 ACT OR SEC		PREEMPTED BY NSMIA
	STAFF INTERPRETATIONS
Templeton Institutional Funds, Inc.
Emerging Markets Series	1).	Sell Short and Use Margin	1).	Invest in Other Investment Companies
	2).	Invest in Restricted or Illiquid Securities	2).	Management Ownership of Securities
	3).	Maintain a Joint Trading Account	3).	Invest in Oil, Gas or Mineral Interests
			4).	Unseasoned Issuers
			5).	Invest in Warrants
Foreign Equity Series	1).	Sell Short and Use Margin	1).	Invest in Other Investment Companies
	2).	Maintain a Joint Trading Account	2).	Management Ownership of Securities
			3).	Invest in Oil, Gas or Mineral Interests
			4).	Unseasoned Issuers
			5).	Invest in Warrants

N-1-12