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\\FS29\SYS\LEGAL\WPDOC2\NSAR\2001\FCTFT-77D-2001.doc
NAME OF REGISTRANT:
Franklin California Tax-Free Trust
File No. 811-4356

EXHIBIT ITEM No. 77D: Policies with respect to security
investments


Resolutions from the Franklin California Tax-Free Trust
minutes of the meeting of the board of trustees, dated July
19, 2001:


     RESOLVED, that effective November 1, 2001, the Franklin
     California Intermediate-Term Tax-Free Income Fund adopt
     a  fundamental policy that it will normally  invest  at
     least  80% of its total assets in securities  that  pay
     interest  free  from California personal income  taxes;
     and

     FURTHER RESOLVED, that effective November 1, 2001,  the
     Franklin California Insured Tax-Free Income Fund  adopt
     a  non-fundamental policy that it will normally  invest
     at  least  80%  of its net assets in insured  municipal
     securities,  and  that this policy is  changeable  only
     upon sixty days advance notice to shareholders; and

     FURTHER  RESOLVED,  that the appropriate  officers  and
     agents of the Trust be authorized to take such actions,
     and   to   execute   and  deliver   such   instruments,
     certificates and documents, including making changes to
     existing  non-fundamental policies as may be  necessary
     or  appropriate, in order to effectuate the  foregoing,
     in compliance with the Names Rule.


          /s/ Murray L. Simpson
          Murray L. Simpson
          Secretary