NAME OF REGISTRANT:
Templeton Global Income Fund
File No. 811-05459

EXHIBIT ITEM NO. 77(E): LEGAL PROCEEDINGS


INVESTIGATIONS AND SETTLEMENTS
As part of various investigations by a number of federal, state, and foreign
regulators and governmental entities, including the Securities and Exchange
Commission ("SEC"), the California Attorney General's Office ("CAGO"), and the
National Association of Securities Dealers, Inc. ("NASD"), relating to certain
practices in the mutual fund industry, including late trading, market timing and
marketing support payments to securities dealers who sell fund shares, Franklin
Resources, Inc. and certain of its subsidiaries (as used in this section,
together, the "Company"), as well as certain current or former executives and
employees of the Company, provided documents and information in response to
subpoenas and/or requests for documents, information and/or testimony. Beginning
in August 2004, the Company entered into settlements with certain of the
regulators and a governmental entity investigating the mutual fund industry
practices noted above. The Company believes that settlement of each of the
matters is in the best interest of the Company and shareholders of the Franklin,
Templeton, and Mutual Series mutual funds (the "funds").

Two of the  settlement  agreements,  those with the SEC and the CAGO  concerning
marketing support  payments,  provide that the distribution of settlement monies
are to be made to the relevant funds, not to individual  shareholders.  The CAGO
has approved the distribution  plan pertaining to the distribution of the monies
owed under the CAGO  settlement  agreement and, in accordance with the terms and
conditions of that  settlement,  the monies were disbursed to the  participating
funds.  The Fund did not participate in the CAGO settlement. The SEC has not
yet  approved the  distribution  plan  pertaining  to the SEC  settlement.  When
approved,  disbursements of settlement monies under the SEC's settlement will be
made promptly in accordance with the terms and conditions of that order.

OTHER LEGAL PROCEEDINGS
On April 12, 2005,  the Attorney  General of West Virginia  filed a complaint in
the  Circuit  Court of  Marshall  County,  West  Virginia  against  a number  of
companies  engaged in the mutual fund industry,  including  Franklin  Resources,
Inc. and its  subsidiary,  Franklin  Advisers,  Inc.,  and certain other parties
alleging  violations of the West Virginia Consumer Credit and Protection Act and
seeking,  among other things,  civil  penalties and  attorneys'  fees and costs.
Defendants have since removed the matter to the United States District Court for
the Northern District of West Virginia. To the extent applicable to the Company,
the complaint  arises from activity  that  occurred in 2001 and  duplicates,  in
whole or in part, the allegations asserted in the February 4, 2004 Massachusetts
Administrative   Complaint   concerning  one  instance  of  market  timing  (the
"Administrative  Complaint") and the SEC's findings  regarding  market timing in
its  August  2,  2004  Order  (the  "SEC  Order"),  both of which  matters  were
previously reported.

The  Company,  in addition  to certain  funds,  and  certain  current and former
officers,  employees,  and  directors  have been named in  multiple  lawsuits in
different  courts alleging  violations of various  federal  securities and state
laws and seeking, among other relief, monetary damages, restitution,  removal of
fund trustees, directors, advisers, administrators, and distributors, rescission
of  management  contracts  and 12b-1 plans,  and/or  attorneys'  fees and costs.
Specifically,  the  lawsuits  claim  breach  of duty  with  respect  to  alleged
arrangements to permit market timing and/or late trading activity,  or breach of
duty with  respect  to the  valuation  of the  portfolio  securities  of certain
Templeton  funds managed by Franklin  Resources,  Inc.  subsidiaries,  allegedly
resulting in market timing activity.  The majority of these lawsuits  duplicate,
in whole or in part, the allegations  asserted in the  Administrative  Complaint
and the SEC's findings  regarding  market timing in the SEC Order.  The lawsuits
are styled as class actions, or derivative actions on behalf of either the named
funds or Franklin Resources, Inc.

The  Company,  in addition  to certain  funds,  and  certain  current and former
officers,  employees,  and  directors,  have  been  named in  multiple  lawsuits
alleging  violations  of various  securities  laws and pendent  state law claims
relating to the  disclosure  of marketing  support  payments  and/or  payment of
allegedly  excessive  commissions  and/or  advisory or  distribution  fees,  and
seeking,  among other  relief,  monetary  damages,  restitution,  rescission  of
advisory  contracts,  including  recovery  of all fees  paid  pursuant  to those
contracts,  an accounting of all monies paid to the named advisers,  declaratory
relief,  injunctive relief, and/or attorneys' fees and costs. These lawsuits are
styled as class  actions or  derivative  actions  brought on behalf of the named
funds.

The Company and fund management strongly believe that the claims made in each of
the lawsuits described above are without merit and intends to defend against
them vigorously. The Company cannot predict with certainty the eventual outcome
of these lawsuits, nor whether they will have a material negative impact on the
Company. Public trust and confidence are critical to the Company's business and
any material loss of investor and/or client confidence could result in a
significant decline in assets under management by the Company, which would have
an adverse effect on future financial results. If it is determined that the
Company bears responsibility for any unlawful or inappropriate conduct that
caused losses to the Fund, it is committed to making the Fund or its
shareholders whole, as appropriate. The Company is committed to taking all
appropriate actions to protect the interests of its funds' shareholders.