EX-99.L-1 19 exhibit99_l-1.htm FUNDAMENTAL INVESTMENT RESTRICTIONS

EXHIBIT L-1

FUNDAMENTAL INVESTMENT RESTRICTIONS RECOMMENDED TO BE AMENDED
AS DESCRIBED IN PROPOSAL 4

 


FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED

FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED

  Franklin California Tax-Free Income Fund, Inc.          
  Franklin California Tax-Free Income Fund 

  1).

 Borrowing    
 

  2).

 Underwriting    
 

  3).

 Lending    
 

  4).

 Investments in Real Estate    
 

  5).

 Investments in Commodities    
 

  6).

 Issuing Senior Securities    
 

  7).

 Concentration    
 

  8).

 Diversification of Investments     
  Franklin California Tax-Free Trust       
  Franklin California Insured Tax-Free Income Fund 

  1).

 Borrowing    
 

  2).

 Underwriting    
 

  3).

 Lending    
 

  4).

Investments in Real Estate

   
    5). Investments in Commodities    
    6). Issuing Senior Securities    
    7). Concentration    
    8). Diversification of Investments    
  Franklin California Intermediate-Term Tax-Free   

  1).

 Borrowing    
  Income Fund   

  2).

 Underwriting    
 

  3).

 Lending    
 

  4).

 Investments in Real Estate    
 

  5).

 Investments in Commodities    
 

  6).

 Issuing Senior Securities    
 

  7).

 Concentration    
 

  8).

 Diversification of Investments    
  Franklin California Limited-Term Tax-Free Income 

  1).

 Lending   1).

Borrowing

  Fund 

  2).

 Investments in Real Estate   2). Underwriting
 

  3).

 Investments in Commodities   3).

Issuing Senior Securities

 

  4).

 Concentration    
 

  5).

 Diversification of Investments    
  Franklin California Tax-Exempt Money Fund   

  1).

 Borrowing    
 

  2).

 Underwriting    
 

  3).

 Lending    
 

  4).

 Investments in Real Estate    
 

  5).

 Investments in Commodities    
 

  6).

 Issuing Senior Securities    
 

  7).

 Concentration    
 

  8).

 Diversification of Investments    
  Franklin Capital Growth Fund 

 

      
 

  1).

 Borrowing   1). Underwriting
 

  2).

 Lending   2). Concentration
  

  3).

 Investments in Real Estate   3).

Diversification of Investments

 

  4).

 Investments in Commodities    
 

  5).

 Issuing Senior Securities    

L-1-1


 


FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED

FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED

  Franklin Custodian Funds, Inc.         
  Franklin DynaTech Fund

  1).

 Borrowing    
 

  2).

 Underwriting    
 

  3).

 Lending    
 

  4).

 Investments in Real Estate    
 

  5).

 Investments in Commodities    
 

  6).

 Issuing Senior Securities     
 

  7).

 Concentration     
 

  8).

 Diversification of Investments      
  Franklin Growth Fund

  1).

 Borrowing     
 

  2).

 Underwriting    
 

  3).

 Lending    
 

  4).

Investments in Real Estate

    
    5). Investments in Commodities    
  

  6).

 Issuing Senior Securities    
 

  7).

 Concentration    
    8). Diversification of Investments    
  Franklin Income Fund

  1).

 Borrowing    
 

  2).

 Underwriting    
 

  3).

 Lending    
 

  4).

 Investments in Real Estate    
 

  5).

 Investments in Commodities     
 

  6).

 Issuing Senior Securities    
 

  7).

 Concentration    
 

  8).

 Diversification of Investments    
  Franklin U.S. Government Securities Fund   1). Borrowing  

 

 

  2).

 Underwriting    
 

  3).

 Lending    
 

  4).

 Investments in Real Estate    
 

  5).

 Investments in Commodities  

 

 

  6).

 Issuing Senior Securities    
 

  7).

 Concentration      
 

  8).

 Diversification of Investments     
  Franklin Utilities Fund

  1).

 Borrowing     
 

  2).

 Underwriting      
 

  3).

 Lending     
 

  4).

 Investments in Real Estate     
 

  5).

 Investments in Commodities      
 

  6).

 Issuing Senior Securities       
 

  7).

 Concentration      
 

  8).

 Diversification of Investments      
  Franklin Global Trust

 

       
  Franklin Large Capitalization Growth and Income

  1).

 Lending   1). Borrowing
  Fund

  2).

 Investments in Real Estate   2).

Underwriting

  

  3).

 Investments in Commodities   3). Issuing Senior Securities
       4). Concentration
      5). Diversification of Investments
  Franklin Small Capitalization Equity Fund   1). Lending   1). Borrowing
    2). Investments in Real Estate   2).

Underwriting

 

  3).

 Investments in Commodities   3). Issuing Senior Securities
        4). Concentration
        5). Diversification of Investments

L-1-2


  
FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED		 FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED
  Franklin Global Real Estate Fund

  1).

 Underwriting   1).

Borrowing

    2). Lending   2). Issuing Senior Securities
    3). Investments in Real Estate   3). Diversification of Investments -
 

  4).

 Investments in Commodities    Non-diversified
 

  5).

 Concentration      
  Franklin Templeton Core Fixed Income Fund   1). Lending   1). Borrowing
     2). Investments in Real Estate   2). Underwriting
  

  3).

 Investments in Commodities   3).

Issuing Senior Securities

  

 

 

   4). Concentration
         5). Diversification of Investments
  Franklin International Smaller Companies Growth

  1).

 Borrowing   1). Underwriting
  Fund

  2).

 Lending   2). Concentration
  

  3).

 Investments in Real Estate     
  

  4).

 Investments in Commodities       
  

  5).

 Issuing Senior Securities        
  

  6).

 Diversification of Investments      
  Franklin Templeton Core Plus Fixed Income Fund   1). Lending   1). Borrowing
 

  2).

 Investments in Real Estate   2). Underwriting 
 

  3).

 Investments in Commodities   3).

Issuing Senior Securities

      4). Concentration
      5). Diversification of Investments – 
        Non-diversified
  Franklin Templeton Emerging Market Debt

  1).

 Lending   1). Borrowing
  Opportunities Fund

  2).

 Investments in Real Estate   2). Underwriting  
  

  3).

 Investments in Commodities   3). Issuing Senior Securities
      4). Concentration
      5). Diversification of Investments – 
      Non-diversified
  Franklin Templeton High Income Fund

  1).

 Lending   1). Borrowing
  

  2).

 Investments in Real Estate   2). Underwriting
   

  3).

 Investments in Commodities   3). Issuing Senior Securities
      4). Concentration
        5). Diversification of Investments
  Franklin Gold and Precious Metals Fund

 

       
 

  1).

 Borrowing   1). Underwriting
        2). Lending   2). Diversification of Investments
    

  3).

 Investments in Real Estate    
   

  4).

 Investments in Commodities –    
    special conditions    
 

  5).

 Issuing Senior Securities    
 

  6).

 Concentration    
  Franklin High Income Trust

 

      
  Franklin High Income Fund   1). Borrowing  

 

 

  2).

 Underwriting    
 

  3).

Lending    
 

  4).

 Investments in Real Estate    
 

  5).

 Investments in Commodities    
 

  6).

 Issuing Senior Securities    
 

  7).

 Concentration    
 

  8).

 Diversification of Investments    

L-1-3


 


FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED

 FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED
  Franklin Investors Securities Trust         
  Franklin Adjustable U.S. Government Securities Fund

  1).

Borrowing

     
 

  2).

 Underwriting     
 

  3).

 Lending      
 

  4).

 Investments in Real Estate       
 

  5).

 Investments in Commodities      
 

  6).

 Issuing Senior Securities       
 

  7).

 Concentration       
 

  8).

 Diversification of Investments      
  Franklin Balanced Fund

  1).

 Lending   1). Borrowing
  

  2).

 Investments in Real Estate   2). Underwriting
        3).

Investments in Commodities

        4). Issuing Senior Securities
        5). Concentration
        6). Diversification of Investments
  Franklin Convertible Securities Fund

  1).

 Lending   1). Borrowing
  

  2).

 Investments in Real Estate   2). Underwriting
  

  3).

 Investments in Commodities   3). Issuing Senior Securities
  

  4).

 Concentration     
  

  5).

 Diversification of Investments       
  Franklin Equity Income Fund   1). Borrowing   

 

 

  2).

 Underwriting      
 

  3).

 Lending      
  

  4).

 Investments in Real Estate      
  

  5).

 Investments in Commodities   

 

 

  6).

 Issuing Senior Securities    
  

  7).

 Concentration    
  

  8).

 Diversification of Investments     
  Franklin Floating Rate Daily Access Fund

  1).

 Borrowing   1). Underwriting
  

  2).

 Lending   2). Diversification of Investments
  

  3).

 Investments in Real Estate      
  

  4).

 Investments in Commodities       
  

  5).

 Issuing Senior Securities        
  

  6).

 Concentration      
  Franklin Limited Maturity U.S. Government

  1).

 Borrowing    
  Securities Fund

  2).

 Underwriting  

 

   

  3).

 Lending     
    4). Investments in Real Estate    
     5). Investments in Commodities    
    6). Issuing Senior Securities    
    7).  Concentration    
    8). Diversification of Investments    
  Franklin Low Duration Total Return Fund   1). Lending   1). Borrowing
    2). Investments in Real Estate   2). Underwriting
    3). Investments in Commodities   3). Issuing Senior Securities
      4). Concentration
        5). Diversification of Investments
  Franklin Real Return Fund   1). 

Lending

   1). Borrowing
    2).

Investments in Real Estate

   2). Underwriting
    3). Investments in Commodities   3). Issuing Senior Securities
      4). Concentration
        5). Diversification of Investments

L-1-4


 


FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED

 FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED
  Franklin Total Return Fund

  1).

 Borrowing   1).

Underwriting

 

  2).

 Lending   2). Concentration  
 

  3).

 Investments in Real Estate       
 

  4).

 Investments in Commodities        
 

  5).

 Issuing Senior Securities       
 

  6).

 Diversification of Investments        

  Franklin Managed Trust

        
  Franklin Rising Dividends Fund   1). Borrowing   1). Underwriting
      2). Lending   2). Concentration  
 

  3).

 Investments in Real Estate  

 

  

  4).

 Investments in Commodities    
 

  5).

 Issuing Senior Securities    
  

  6).

 Diversification of Investments    

  Franklin Municipal Securities Trust

        
  Franklin California High Yield Municipal Fund

  1).

 Borrowing   1). Diversification of Investments
      2). Underwriting    
   

  3).

 Lending    
   

  4).

 Investments in Real Estate       
    

  5).

 Investments in Commodities        
 

  6).

 Issuing Senior Securities    
 

  7).

 Concentration    
  Franklin Tennessee Municipal Bond Fund   1). Borrowing   1). Diversification of Investments
     2). Underwriting        
  

  3).

 Lending        
   

  4).

 Investments in Real Estate        
   

  5).

 Investments in Commodities     

 

  

  6).

 Issuing Senior Securities      
   

  7).

 Concentration     

  Franklin Mutual Recovery Fund

       
 

  1).

 Underwriting   1). Borrowing
      2). Lending   2). Issuing Senior Securities
      3). Investments in Real Estate   3). Diversification of Investments
      4). Investments in Commodities        
   

  5).

 Concentration         

  Franklin Mutual Series Fund Inc.

        
  Mutual Beacon Fund

  1).

 Borrowing   1). Underwriting
    

  2).

 Lending   2). Investments in Commodities
    3). Investments in Real Estate    
    4). Issuing Senior Securities  
    5).  Concentration      
     6). Diversification of Investments      
  Mutual Discovery Fund   1). Borrowing   1). Underwriting
    2). Lending   2). Investments in Commodities
     3). Investments in Real Estate    
    4).   Issuing Senior Securities    
 

  5).

Concentration    
 

  6).

Diversification of Investments    

L-1-5


 
FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED		 FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED
  Mutual European Fund   1). Borrowing   1). Underwriting
    2). Lending   2). Investments in Commodities
    3). Investments in Real Estate         
    4). Issuing Senior Securities           
    5). Concentration    
    6). Diversification of Investments          
  Mutual Financial Services Fund   1). Borrowing   1). Underwriting
      2). Lending   2). Investments in Commodities
    3). Investments in Real Estate    
    4). Issuing Senior Securities    
    5). Concentration    
     6). Diversification of Investments      
  Mutual Qualified Fund   1). Borrowing   1). Underwriting
      2). Lending   2). Investments in Commodities
      3). Investments in Real Estate    
       4). Issuing Senior Securities         
    5). Concentration    
    6). Diversification of Investments      
  Mutual Shares Fund   1). Borrowing   1). Underwriting
     2). Lending   2). Investments in Commodities
     3). Investments in Real Estate          
      4). Issuing Senior Securities       
     5). Concentration        
      6). Diversification of Investments        
  Franklin New York Tax-Free Income Fund          
    1). Borrowing    
       2). Underwriting    
       3). Lending    
       4). Investments in Real Estate          
       5). Investments in Commodities            
    6). Issuing Senior Securities    
    7). Concentration    
    8). Diversification of Investments    
  Franklin New York Tax-Free Trust          
  Franklin New York Insured Tax-Free Income Fund   1). Borrowing    
    2). Underwriting    
         3). Lending          
      4). Investments in Real Estate      
       5). Investments in Commodities       
     6). Issuing Senior Securities       
      7).  Concentration       
      8). Diversification of Investments      
  Franklin New York Intermediate-Term Tax-Free   1). Borrowing    
  Income Fund   2). Underwriting    
      3). Lending      
    4). Investments in Real Estate    
      5). Investments in Commodities    
     6). Issuing Senior Securities    
    7). Concentration      
     8). Diversification of Investments      

L-1-6


 


FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED

FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED
  Franklin New York Limited-Term Tax-Free Income   1). Borrowing    
  Fund   2). Underwriting      
      3). Lending    
     4). Investments in Real Estate           
     5). Investments in Commodities            
     6). Issuing Senior Securities          
     7). Concentration           
    8). Diversification of Investments    
    – Non-diversified1    
  Franklin New York Tax-Exempt Money Fund   1). Borrowing    
    2). Underwriting      
       3). Lending    
     4). Investments in Real Estate     
      5). Investments in Commodities        
     6). Issuing Senior Securities      
      7). Concentration        
    8). Diversification of Investments    
  Franklin Real Estate Securities Trust        
  Franklin Real Estate Securities Fund   1). Borrowing   1). Diversification of Investments
       2). Underwriting      
       3). Lending      
        4). Investments in Real Estate        
         5). Investments in Commodities          
    6). Issuing Senior Securities       
    7). Concentration            
  Franklin Strategic Mortgage Portfolio        
    1). Borrowing    
       2). Underwriting     
      3). Lending        
       4). Investments in Real Estate            
        5). Investments in Commodities        
       6). Issuing Senior Securities          
       7). Concentration          
    8). Diversification of Investments    
  Franklin Strategic Series            
  Franklin Aggressive Growth Fund   1). Borrowing   1). Underwriting
          2). Lending   2). Concentration
        3). Investments in Real Estate         
         4). Investments in Commodities          
      5). Issuing Senior Securities         
       6). Diversification of Investments        
  Franklin Biotechnology Discovery Fund   1). Borrowing   1). Diversification of Investments –
    2). Underwriting     Non-diversified
       3). Lending         
    4). Investments in Real Estate     
       5). Investments in Commodities      
      6). Issuing Senior Securities     
     7). Concentration          

____________________

1       Only the Fund’s fundamental investment restriction that prohibits the Fund from owning more than 10% of the voting securities of any one issuer is recommended to be eliminated. It is not proposed that such Fund’s status as a non-diversified investment company be changed.

 L-1-7


 


FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED

 FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED
  Franklin Blue Chip Fund   1). Borrowing    
    2). Underwriting      
       3). Lending      
      4). Investments in Real Estate             
      5). Investments in Commodities              
      6). Issuing Senior Securities            
      7). Concentration           
    8). Diversification of Investments    
  Franklin Flex Cap Growth Fund   1). Borrowing   1). Diversification of Investments
    2). Underwriting       
        3). Lending       
      4). Investments in Real Estate     
       5). Investments in Commodities          
      6). Issuing Senior Securities         
       7). Concentration          
  Franklin Global Communications Fund   1). Borrowing   1). Diversification of Investments
        2). Underwriting        
        3). Lending           
        4). Investments in Real Estate         
         5). Investments in Commodities             
     6). Issuing Senior Securities         
     7). Concentration           
  Franklin Global Health Care Fund   1). Borrowing   1). Diversification of Investments –
        2). Underwriting     Non-diversified
       3). Lending            
        4). Investments in Real Estate            
         5). Investments in Commodities        
        6). Issuing Senior Securities         
        7). Concentration           
  Franklin Natural Resources Fund     1). Borrowing   1).  Diversification of Investments
         2). Underwriting      
         3). Lending      
         4). Investments in Real Estate           
         5). Investments in Commodities             
      6). Issuing Senior Securities       
     7). Concentration      
  Franklin Small Cap Growth Fund II   1). Borrowing   1). Underwriting
           2). Lending     
        3). Investments in Real Estate           
         4). Investments in Commodities           
       5). Issuing Senior Securities          
    6). Concentration    
       7). Diversification of Investments          
  Franklin Small-Mid Cap Growth Fund   1). Borrowing     
    2). Underwriting       
        3). Lending           
     4). Investments in Real Estate       
        5). Investments in Commodities        
       6). Issuing Senior Securities         
    7). Concentration     
      8). Diversification of Investments          

L-1-8


 


FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED

 FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED
  Franklin Strategic Income Fund   1). Borrowing   1). Diversification of Investments
     2). Underwriting        
        3). Lending        
       4). Investments in Real Estate              
       5). Investments in Commodities               
       6). Issuing Senior Securities              
       7). Concentration             
  Franklin Technology Fund   1). Borrowing   1). Underwriting  
          2). Lending   2). Diversification of Investments
       3). Investments in Real Estate     
        4). Investments in Commodities            
       5). Issuing Senior Securities           
        6). Concentration            
  Franklin U.S. Long-Short Fund   1). Borrowing   1). Underwriting  
         2). Lending   2). Concentration
          3). Investments in Real Estate           
           4). Investments in Commodities            
      5). Issuing Senior Securities         
     6). Diversification of Investments             
  Franklin Tax-Free Trust        
  Franklin Alabama Tax-Free Income Fund   1). Borrowing    
         2). Underwriting         
        3). Lending             
         4). Investments in Real Estate              
          5). Investments in Commodities          
          6). Issuing Senior Securities           
         7). Concentration            
    8). Diversification of Investments    
  Franklin Arizona Tax-Free Income Fund    1). Borrowing    
          2). Underwriting         
          3). Lending         
          4). Investments in Real Estate              
          5). Investments in Commodities              
       6). Issuing Senior Securities        
       7). Concentration        
    8). Diversification of Investments    
  Franklin Colorado Tax-Free Income Fund   1). Borrowing     
    2). Underwriting    
            3). Lending      
         4). Investments in Real Estate            
          5). Investments in Commodities            
         6). Issuing Senior Securities            
     7). Concentration     
         8). Diversification of Investments           
  Franklin Connecticut Tax-Free Income Fund   1). Borrowing      
    2). Underwriting        
         3). Lending             
       4). Investments in Real Estate         
         5). Investments in Commodities          
         6). Issuing Senior Securities          
    7). Concentration        
       8). Diversification of Investments          

L-1-9


 


FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED

 FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED
  Franklin Double Tax-Free Income Fund   1). Borrowing    
     2). Underwriting          
         3). Lending         
       4). Investments in Real Estate               
       5). Investments in Commodities                
       6). Issuing Senior Securities               
       7). Concentration              
    8). Diversification of Investments    
  Franklin Federal Intermediate-Term Tax-Free   1). Borrowing    
  Income Fund   2). Underwriting    
    3). Lending    
        4). Investments in Real Estate     
         5). Investments in Commodities              
        6). Issuing Senior Securities            
         7). Concentration             
    8). Diversification of Investments    
  Franklin Federal Limited-Term Tax-Free   1). Lending   1). Borrowing
  Income Fund   2). Investments in Real Estate   2). Underwriting  
           3). Investments in Commodities   3). Issuing Senior Securities
            4). Diversification of Investments   4). Concentration        
  Franklin Florida Insured Tax-Free Income Fund   1). Borrowing    
          2). Underwriting           
         3). Lending            
          4). Investments in Real Estate               
           5). Investments in Commodities          
           6). Issuing Senior Securities           
         7). Concentration             
    8). Diversification of Investments    
  Franklin Florida Tax-Free Income Fund   1). Borrowing    
           2). Underwriting         
           3). Lending         
           4). Investments in Real Estate               
           5). Investments in Commodities               
        6). Issuing Senior Securities        
       7). Concentration        
    8). Diversification of Investments    
  Franklin Georgia Tax-Free Income Fund   1). Borrowing     
    2). Underwriting    
             3). Lending      
          4). Investments in Real Estate             
            5). Investments in Commodities             
         6). Issuing Senior Securities             
     7). Concentration     
          8). Diversification of Investments            
  Franklin High Yield Tax-Free Income Fund   1). Borrowing      
    2). Underwriting        
          3). Lending               
        4). Investments in Real Estate          
          5). Investments in Commodities          
          6). Issuing Senior Securities          
    7). Concentration        
        8). Diversification of Investments          

L-1-10


 


FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED

 FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED
  Franklin Insured Tax-Free Income Fund   1). Borrowing    
     2). Underwriting          
         3). Lending         
       4). Investments in Real Estate               
       5). Investments in Commodities                
       6). Issuing Senior Securities               
       7). Concentration              
    8). Diversification of Investments    
  Franklin Kentucky Tax-Free Income Fund   1). Borrowing    
    2). Underwriting    
    3). Lending    
        4). Investments in Real Estate     
         5). Investments in Commodities              
        6). Issuing Senior Securities            
         7). Concentration             
    8). Diversification of Investments    
  Franklin Louisiana Tax-Free Income Fund   1). Borrowing    
    2). Underwriting    
           3). Lending    
            4). Investments in Real Estate    
    5). Investments in Commodities    
    6). Issuing Senior Securities    
    7). Concentration    
    8). Diversification of Investments    
  Franklin Maryland Tax-Free Income Fund   1). Borrowing    
          2). Underwriting           
         3). Lending            
          4). Investments in Real Estate               
           5). Investments in Commodities          
           6). Issuing Senior Securities           
         7). Concentration             
    8). Diversification of Investments    
  Franklin Massachusetts Insured Tax-Free Income   1). Borrowing    
  Fund   2). Underwriting         
           3). Lending         
           4). Investments in Real Estate               
           5). Investments in Commodities               
        6). Issuing Senior Securities        
       7). Concentration        
    8). Diversification of Investments    
  Franklin Michigan Insured Tax-Free Income Fund   1). Borrowing     
    2). Underwriting    
             3). Lending      
          4). Investments in Real Estate             
            5). Investments in Commodities             
         6). Issuing Senior Securities             
     7). Concentration     
          8). Diversification of Investments            
  Franklin Minnesota Insured Tax-Free Income Fund   1). Borrowing      
    2). Underwriting        
          3). Lending               
        4). Investments in Real Estate          
          5). Investments in Commodities          
          6). Issuing Senior Securities          
    7). Concentration        
        8). Diversification of Investments          

L-1-11


 


FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED

 FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED
  Franklin Missouri Tax-Free Income Fund   1). Borrowing    
     2). Underwriting          
         3). Lending         
       4). Investments in Real Estate               
       5). Investments in Commodities                
       6). Issuing Senior Securities               
       7). Concentration              
    8). Diversification of Investments    
  Franklin New Jersey Tax-Free Income Fund   1). Borrowing    
    2). Underwriting    
    3). Lending    
        4). Investments in Real Estate     
         5). Investments in Commodities              
        6). Issuing Senior Securities            
         7). Concentration             
    8). Diversification of Investments    
  Franklin North Carolina Tax-Free Income Fund   1). Borrowing    
    2). Underwriting    
           3). Lending    
            4). Investments in Real Estate    
    5). Investments in Commodities    
    6). Issuing Senior Securities    
    7). Concentration    
    8). Diversification of Investments    
  Franklin Ohio Insured Tax-Free Income Fund   1). Borrowing    
          2). Underwriting           
         3). Lending            
          4). Investments in Real Estate               
           5). Investments in Commodities          
           6). Issuing Senior Securities           
         7). Concentration             
    8). Diversification of Investments    
  Franklin Oregon Tax-Free Income Fund   1). Borrowing    
           2). Underwriting         
           3). Lending         
           4). Investments in Real Estate               
           5). Investments in Commodities               
        6). Issuing Senior Securities        
       7). Concentration        
    8). Diversification of Investments    
  Franklin Pennsylvania Tax-Free Income Fund   1). Borrowing     
    2). Underwriting    
             3). Lending      
          4). Investments in Real Estate             
            5). Investments in Commodities             
         6). Issuing Senior Securities             
     7). Concentration     
          8). Diversification of Investments            
  Franklin Virginia Tax-Free Income Fund   1). Borrowing      
    2). Underwriting        
          3). Lending               
        4). Investments in Real Estate          
          5). Investments in Commodities          
          6). Issuing Senior Securities          
    7). Concentration        
        8). Diversification of Investments          

L-1-12


 


FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED

 FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED
  Franklin Templeton Fund Allocator Series        
  Franklin Templeton Conservative Target Fund   1). Borrowing   1). Diversification of Investments
     2). Underwriting           
          3). Lending         
       4). Investments in Real Estate               
       5). Investments in Commodities                
       6). Issuing Senior Securities               
       7). Concentration              
  Franklin Templeton Corefolio Allocation Fund   1). Lending   1). Borrowing
    2). Investments in Real Estate   2). Underwriting
    3). Investments in Commodities   3). Issuing Senior Securities
        4). Concentration
        5). Diversification of Investments
  Franklin Templeton Founding Funds Allocation   1). Lending   1). Borrowing
  Fund   2). Investments in Real Estate   2). Underwriting
            3). Investments in Commodities   3). Issuing Senior Securities
                 4). Concentration
        5). Diversification of Investments   
  Franklin Templeton Growth Target Fund   1). Borrowing   1). Diversification of Investments
           2). Underwriting           
          3). Lending            
           4). Investments in Real Estate               
            5). Investments in Commodities          
            6). Issuing Senior Securities           
         7). Concentration              
  Franklin Templeton Moderate Target Fund   1). Borrowing   1). Diversification of Investments
            2). Underwriting         
           3). Lending         
           4). Investments in Real Estate               
           5). Investments in Commodities               
        6). Issuing Senior Securities        
       7). Concentration        
  Franklin Templeton Perspectives Allocation Fund   1). Lending    1). Borrowing
    2). Investments in Real Estate   2). Underwriting
              3). Investments in Commodities   3). Issuing Senior Securities
               4). Concentration
                 5). Diversification of Investments
  Franklin Templeton 2015 Retirement Target Fund   1). Lending     1). Borrowing
    2). Investments in Real Estate   2). Underwriting
               3). Investments in Commodities
             4). Issuing Senior Securities
               5). Concentration
               6). Diversification of Investments
  Franklin Templeton 2025 Retirement Target Fund   1). Lending     1). Borrowing
    2). Investments in Real Estate   2). Underwriting
        3). Investments in Commodities
        4). Issuing Senior Securities
        5). Concentration
        6). Diversification of Investments
  Franklin Templeton 2035 Retirement Target Fund   1). Lending     1). Borrowing
    2). Investments in Real Estate   2). Underwriting
        3). Investments in Commodities
        4). Issuing Senior Securities
        5). Concentration
        6). Diversification of Investments

L-1-13


 


FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED

 FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED
  Franklin Templeton 2045 Retirement Target Fund   1). Lending   1). Borrowing
     2). Investments in Real Estate   2). Underwriting
               3). Investments in Commodities
           4). Issuing Senior Securities
           5). Concentration
            6). Diversification of Investments
  Franklin Templeton Global Trust          
  Franklin Templeton Hard Currency Fund   1). Borrowing      
    2). Underwriting       
    3). Lending     
    4). Investments in Real Estate       
    5). Investments in Commodities     
    6). Issuing Senior Securities      
    7). Concentration     
    8). Diversification of Investments    
    – Non-diversified2    
  Franklin Templeton International Trust           
  Templeton Foreign Smaller Companies Fund   1). Borrowing     
    2). Underwriting    
             3). Lending    
              4). Investments in Real Estate    
    5). Investments in Commodities    
    6). Issuing Senior Securities    
    7). Concentration     
    8). Diversification of Investments    
  Templeton Global Long-Short Fund   1). Borrowing   1). Underwriting
           2). Lending   2). Concentration
            3). Investments in Real Estate             
             4). Investments in Commodities           
             5). Issuing Senior Securities             
         6). Diversification of Investments               
  Franklin Templeton Money Fund Trust         
  Franklin Templeton Money Fund   1). Borrowing    
             2). Underwriting          
           3). Lending           
           4). Investments in Real Estate                  
           5). Investments in Commodities             
        6). Issuing Senior Securities        
       7). Concentration        
    8). Diversification of Investments    
  Franklin Value Investors Trust          
  Franklin Balance Sheet Investment Fund   1). Borrowing    
    2). Underwriting    
               3). Lending    
            4). Investments in Real Estate    
    5). Investments in Commodities    
    6). Issuing Senior Securities    
    7). Concentration    
              8). Diversification of Investments    

____________________

2      

Only the Fund’s investment restriction that relates to Subchapter M diversification requirements is recommended to be eliminated. It is not proposed that such Fund’s status as a non-diversified investment company be changed.

L-1-14


 


FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED

 FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED
  Franklin Large Cap Value Fund   1). Borrowing   1). Underwriting
      2). Lending    
            3). Investments in Real Estate    
        4). Investments in Commodities    
        5). Issuing Senior Securities    
        6). Concentration    
    7). Diversification of Investments    
  Franklin MicroCap Value Fund   1). Borrowing   1). Diversification of Investments
     2). Underwriting        
     3). Lending     
     4). Investments in Real Estate        
    5). Investments in Commodities     
    6). Issuing Senior Securities       
    7). Concentration     
  Franklin MidCap Value Fund   1). Lending   1). Borrowing
    2). Investments in Real Estate   2). Underwriting
              3). Investments in Commodities   3). Issuing Senior Securities  
                   4). Concentration
        5). Diversification of Investments    
  Franklin Small Cap Value Fund   1). Borrowing   1).  Diversification of Investments    
            2). Underwriting    
             3). Lending               
    4). Investments in Real Estate    
              5). Investments in Commodities           
              6). Issuing Senior Securities             
          7). Concentration               
  Institutional Fiduciary Trust           
  Franklin Cash Reserves Fund   1). Borrowing    
              2). Underwriting          
            3). Lending             
            4). Investments in Real Estate                  
            5). Investments in Commodities              
         6). Issuing Senior Securities        
        7). Concentration        
    8). Diversification of Investments    
  Franklin Structured Large Cap Core Equity   1). Borrowing   1). Underwriting
  Fund   2). Lending   2). Concentration
             3). Investments in Real Estate     
    4). Investments in Commodities    
    5). Issuing Senior Securities    
               6). Diversification of Investments    
  Franklin Structured Large Cap Growth Equity   1). Borrowing   1). Underwriting
  Fund   2). Lending   2). Concentration
    3). Investments in Real Estate    
    4). Investments in Commodities    
    5). Issuing Senior Securities    
    6). Diversification of Investments    
  Money Market Portfolio   1). Borrowing    
    2). Underwriting    
    3). Lending    
    4). Investments in Real Estate    
    5). Investments in Commodities    
    6). Issuing Senior Securities    
    7). Concentration    
    8). Diversification of Investments    

L-1-15


 


FUNDAMENTAL INVESTMENT
RESTRICTIONS TO BE AMENDED

 FUNDAMENTAL INVESTMENT
RESTRICTIONS TO REMAIN
UNCHANGED
  The Money Market Portfolios         
  The Money Market Portfolio   1). Borrowing    
      2). Underwriting    
    3). Lending    
             4). Investments in Real Estate    
          5). Investments in Commodities    
         6). Issuing Senior Securities    
        7). Concentration     
    8). Diversification of Investments    
  Templeton Developing Markets Trust        
    1). Lending   1). Borrowing
      2). Investments in Commodities   2). Underwriting
         3). Investments in Real Estate
         4). Issuing Senior Securities
        5). Concentration
        6). Diversification of Investments
  Templeton China World Fund          
    1). Lending   1). Borrowing
    2). Investments in Real Estate   2). Underwriting
               3). Investments in Commodities   3). Issuing Senior Securities  
                    4). Concentration
      5). Diversification of Investments –  
         Non-diversified
  Templeton Funds, Inc.        
  Templeton Foreign Fund   1). Lending    1). Borrowing
             2). Investments in Real Estate   2). Underwriting
                  3). Issuing Senior Securities
        4). Investments in Commodities
                   5). Concentration
                   6). Diversification of Investments
  Templeton World Fund   1). Lending   1). Borrowing
               2). Investments in Real Estate   2). Underwriting
                 3). Issuing Senior Securities
                 4). Investments in Commodities                  
                 5). Concentration
             6). Diversification of Investments    
  Templeton Global Smaller Companies Fund          
    1). Lending   1). Borrowing
                 2). Investments in Real Estate   2). Underwriting
                  3). Issuing Senior Securities
        4). Investments in Commodities
        5). Concentration
                      6). Diversification of Investments
  Templeton Income Trust          
  Templeton Global Bond Fund   1). Lending   1). Borrowing
    2). Investments in Real Estate   2). Issuing Senior Securities
        3). Underwriting
        4). Investments in Commodities
        5). Concentration
      6). Diversification of Investments –
        Non-diversified

L-1-16


   FUNDAMENTAL INVESTMENT
 RESTRICTIONS TO BE AMENDED 		 FUNDAMENTAL INVESTMENT
 RESTRICTIONS TO REMAIN
 UNCHANGED
  Templeton Institutional Funds, Inc.    
  Emerging Markets Series

  1). Borrowing

  
  2). Underwriting
  3). Lending
  4). Investments in Real Estate
  5). Investments in Commodities
  6). Issuing Senior Securities
  7). Concentration
  8). Diversification of Investments
  Foreign Equity Series   1). Borrowing  
  2). Underwriting 
  3). Lending
  4). Investments in Real Estate 
  5). Investments in Commodities
  6). Issuing Senior Securities
  7). Concentration 
  8). Diversification of Investments
  Foreign Smaller Companies Series   1). Lending   1). Borrowing
  2). Investments in Real Estate    2). Underwriting
  3). Investments in Commodities    3). Issuing Senior Securities
  4). Concentration   
  5). Diversification of Investments  

L-1-17