TF2 STKP
116 STKP
MUN STKP

                         SUPPLEMENT DATED APRIL 21, 1998
                             TO THE PROSPECTUSES OF
                             FRANKLIN TAX-FREE TRUST
             (TF2 - ALABAMA, FLORIDA, GEORGIA, KENTUCKY, LOUISIANA,
              MARYLAND, MISSOURI, NORTH CAROLINA, TEXAS, AND VIRGINIA
                             TAX-FREE INCOME FUNDS)
                               DATED JULY 1, 1997

                      FRANKLIN FEDERAL TAX-FREE INCOME FUND
                             DATED SEPTEMBER 1, 1997

                       FRANKLIN MUNICIPAL SECURITIES TRUST
                              DATED OCTOBER 1, 1997

The prospectus is amended as follows:

I. The first two paragraphs and the first waiver  category in the section "Sales
Charge Waivers," found under "How Do I Buy Shares? - Sales Charge Reductions and
Waivers," are replaced with the following:

 SALES CHARGE  WAIVERS.  If one of the following sales charge waivers applies to
 you or your  purchase of Fund shares,  you may buy shares of the Fund without a
 front-end sales charge or a Contingent  Deferred Sales Charge. All of the sales
 charge waivers  listed below apply to purchases of Class I shares only,  except
 for items 1 and 3 which also apply to Class II purchases.

 Certain distributions,  payments or redemption proceeds that you receive may be
 used to buy  shares of the Fund  without a sales  charge if you  reinvest  them
 within 365 days of their payment or redemption date. They include:

 1. Dividend and capital gain  distributions from any Franklin Templeton Fund or
 a real  estate  investment  trust  (REIT)  sponsored  or  advised  by  Franklin
 Properties,  Inc. The  distributions  generally  must be reinvested in the same
 class of shares.  Certain exceptions apply,  however,  to Class II shareholders
 who chose to reinvest their  distributions in Class I shares of the Fund before
 November 17, 1997, and to Advisor Class or Class Z  shareholders  of a Franklin
 Templeton  Fund who may reinvest their  distributions  in Class I shares of the
 Fund.

II. The sections  "Contingent  Deferred Sales Charge - Class I" and  "Contingent
Deferred Sales Charge - Class II," found under "May I Exchange Shares for Shares
of Another Fund? - Will Sales Charges Apply to My Exchange?",  are replaced with
the following:

 CONTINGENT  DEFERRED  SALES  CHARGE.  For  accounts  with  shares  subject to a
 Contingent  Deferred  Sales Charge,  we will first  exchange any shares in your
 account that are not subject to the charge. If there are not enough of these to
 meet your exchange  request,  we will exchange  shares subject to the charge in
 the order they were purchased.

 If you  exchange  Class I shares  into one of our  money  funds,  the time your
 shares  are held in that fund  will not count  towards  the  completion  of any
 Contingency  Period.  If you exchange  your Class II shares for shares of Money
 Fund II, however, the time your shares are held in that fund will count towards
 the completion of any Contingency Period.

III.  Under "What  Distributions  Might I Receive from the Fund? -  Distribution
Options," the  references in the first two paragraphs to the ability of Class II
shareholders to reinvest or direct their  distributions to Class I shares of the
Fund or another Franklin Templeton Fund are deleted and the following  paragraph
is added to the section:

 Distributions  may be  reinvested  only in the SAME CLASS of shares,  except as
 follows: (i) Class II shareholders who chose to reinvest their distributions in
 Class I shares of the Fund or another  Franklin  Templeton Fund before November
 17, 1997,  may continue to do so; and (ii) Class II  shareholders  may reinvest
 their distributions in shares of any Franklin Templeton money fund.

IV. The following  definition  is revised in the "Useful Terms and  Definitions"
section:

 CONTINGENCY  PERIOD - For Class I shares,  the 12 month  period  during which a
 Contingent   Deferred  Sales  Charge  may  apply.  For  Class  II  shares,  the
 contingency  period is 18 months.  The holding period for Class I begins on the
 first day of the month in which you buy shares.  Regardless  of when during the
 month you buy  Class I shares,  they will age one month on the last day of that
 month and each following  month.  The holding period for Class II begins on the
 day you buy your shares. For example, if you buy Class II shares on the 18th of
 the  month,  they will age one month on the 18th day of the next month and each
 following month.