NOTES TO FINANCIAL STATEMENTS
Note A--Significant Accounting Policies
General: The Calvert Tax-Free Reserves (the "Fund") is registered under the Investment Company Act of 1940
as a diversified, open-end management investment company. The Fund is comprised of six separate portfolios,
three of which are reported herein; Money Market, Limited-Term and Long-Term. The operations of each series
are accounted for separately. Each Portfolio offers shares of beneficial interest. Money Market Class O and
Class MMP shares are sold without a sales charge. Limited-Term and Long-Term offer both Class A and Class
C shares. Class A shares are sold with a maximum front-end sales charge of 2.00% for Limited-Term and
3.75% for Long-Term. Class C shares, which have no transaction-based sales charge, have a higher annual
expense rate than Class A. Each class has different: (a) dividend rates due to differences in Distribution Plan
expenses and other class specific expenses, (b) exchange privileges and (c) class specific voting rights.
On April 26, 1996, the net assets of Calvert Tax-Free Reserves New Jersey Money Market Portfolio, ("New
Jersey"), approximately $25.6 million, were merged into Money Market Portfolio. The merger was a tax-free
exchange, whereby Class O shares were issued to the former New Jersey shareholders.
Security Valuation: Municipal securities are valued utilizing the average of bid prices or at bid prices based on a
matrix system (which considers such factors as security prices, yields, maturities and ratings) furnished by dealers
through an independent pricing service. Securities listed or traded on a national securities exchange are valued at
the last reported sale price. All securities for Money Market are valued at amortized cost which approximates
market. Other securities and assets for which market quotations are not available or deemed inappropriate are
valued in good faith under the direction of the Board of Trustees.
Options: Long-Term may write or purchase option securities. Th