CMA PENNSYLVANIA
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 1997
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless accompanied
or preceded by the Fund's current prospectus. Past performance results
shown in this report should not be considered a representation of
future performance, which will fluctuate. The Fund seeks to maintain
a consistent $1.00 net asset value per share, although this cannot be
assured. An investment in the Fund is neither insured nor guaranteed
by the US Government. Statements and other information herein are as
dated and are subject to change.
CMA Pennsylvania
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011 #11285 -- 9/97
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Printed on post-consumer recycled paper
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[MERRILL LYNCH BULL LOGO]
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1997, CMA Pennsylvania
Municipal Money Fund paid shareholders a net annualized yield of
3.07%*. As of September 30, 1997, the Fund's 7-day yield was 3.33%.
Economic Environment and
Investment Strategy
The Philadelphia Federal Reserve Bank Index in September fell for a
second month in a row, suggesting that Philadelphia-area manufacturers
may be shifting into a lower gear. The Index, which unexpectedly rose
in June from 25.2 to 28.1, fell to 24.3 and 20.4 in August and
September, respectively. A positive reading means that the number of
companies reporting stepped-up activity surpassed those reporting
weakening business. Survey indicators for September suggest that
although growth in the manufacturing sector continued at a relatively
healthy pace, pressure on input prices and final goods remained
moderate. For example, the regional index measuring the prices
manufacturers pay for goods fell to 15.1 in September from 16.1 in
August. Looking ahead, the region's manufacturers said they were more
optimistic about business conditions expected during the next six
months. Additionally, Pennsylvania's August seasonally adjusted
unemployment rate remained at 5.3% as reported by the Department of
Labor and Industry. The current employment diffusion index showed a
notable increase from 7.7 in July to 14.2 in August, with 20% of
reporting firms posting that average work hours were higher. Moreover,
the employment index has been positive for the last eight consecutive
months.
During the six-month period ended September 30, 1997, the commonwealth
of Pennsylvania received final approval on the commonwealth's $17
billion 1997--1998 budget. The final draft includes approximately $167
million in tax cuts for businesses and a 21% increase in the House of
Representatives' yearly appropriations to $117 million. The 1997--1998
commonwealth budget represents a 37% increase in commonwealth spending
from the current year. Additionally, as part of a matching grant
program, Governor Tom Ridge allotted $8.5 million to 51 promotion
agencies to promote tourism. Tourism, Pennsylvania's second-largest
industry, provided more than $20 billion for the commonwealth's
economy in fiscal 1995.
During the six-month period ended September 30, 1997, the Federal
Reserve Board held monetary policy steady in response to a continuing
stream of favorable inflationary data. However, periods of strong
consumer spending kept the US Treasury market somewhat volatile with
the yield on the benchmark 30-year Treasury bond trading between
6.30%--7.18%. Nonetheless, conditions affecting short-term municipal
bonds were quite different. For a majority of the six-month period,
yields on one-year fixed-rate notes remained in a much narrower range,
trading between 3.80%--3.90%. Furthermore, during most of the period
yields on variable rate demand obligations considerably outperformed
those on fixed-rate issues. The factors contributing to this were an
abundance of new variable rate products coming to market along with
net outflows from tax-exempt money market funds. For example, during
the first half of the six-month period, yields on variable rate
products averaged approximately 20 basis points (0.20%) above the
yields on one-year fixed-rate notes. Thus, when appropriate, we
continued to increase the Fund's concentration in variable rate demand
notes to seek to take advantage of the spread as compared to fixed-
rate notes.
As the second half of the period began, traditional fixed-rate supply
drove up yields on short-term notes to more attractive levels versus
their variable counterparts, providing us with a long-awaited
opportunity to extend the Fund's maturity. We took advantage of this
opportunity in response to the opinion that monetary policy would stay
on hold through year-end and that yields on notes purchased during
this time would outperform variable rate products over the next six
months. The Fund, which had an average portfolio maturity in the 25-
day range by early to mid-July, ended the period in the 40-day range.
During the six-month period ended September 30, 1997, the commonwealth
of Pennsylvania's issuance totaled $1.2 billion. Finally,
diversification and credit quality remain paramount to the Fund, and
we will continue to closely monitor the everchanging marketplace.
In Conclusion
We thank you for your support of CMA Pennsylvania Municipal Money
Fund, and we look forward to serving your investment needs in the
months and years ahead.
Sincerely,
/S/ARTHUR ZEIKEL
Arthur Zeikel
President
/S/VINCENT R. GIORDANO
Vincent R. Giordano
Senior Vice President
/S/DARRIN J. SANFILLIPPO
Darrin J. SanFillippo
Vice President and Portfolio Manager
November 3, 1997
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after
all expenses.
<TABLE>
<CAPTION>
CMA Pennsylvania Municipal Money Fund
Schedule of Investments as of September 30, 1997 (in Thousands)
Face Value
State Amount Issue (Note 1a)
<S> <C> <C> <C>
Pennsylvania -- Allegheny County, Pennsylvania, Hospital Development Authority
98.9% Revenue Bonds, VRDN (a):
$1,000 (Allegheny General Hospital), Series B, 4% due 9/01/2010 $1,000
5,000 (Saint Francis Medical Center -- Accounts Receivable Program),
Series A, 4.15% due 2/15/2012 5,000
6,500 Allegheny County, Pennsylvania, IDA, Pollution Revenue Bonds
(Duquesne Light Project), CP, Series A, 3.70% due 2/05/1998 6,500
Allegheny County, Pennsylvania, IDA, Revenue Bonds, VRDN, Series A (a):
6,200 Refunding (Commercial Development Parkway Center Mall Project),
4.10% due 5/01/2009 6,200
13,650 (United Jewish Federation Project), 4.10% due 10/01/2026 13,650
Beaver County, Pennsylvania, IDA, PCR:
2,000 (Duquesne Light Project), CP, 3.70% due 10/22/1997 2,000
4,200 (Duquesne Light Project), CP, 3.85% due 11/10/1997 4,200
4,000 Refunding (Atlantic Richfield Project), VRDN, 4.15% due 12/01/2020 (a) 4,000
10,000 Refunding (Toledo Edison Project), CP, Series E, 3.70% due 12/04/1997 10,000
Berks County, Pennsylvania IDA, IDR:
4,100 (Citizens Utilities Co. Projects), CP, 3.80% due 10/24/1997 4,100
2,235 (Valley Forge Company, Inc. Project), VRDN, AMT, Series A,
4.25% due 9/01/2006 (a) 2,235
4,830 Bucks County, Pennsylvania, IDA, Environmental Improvement Revenue
Refunding Bonds (USX Corporate Project), 3.75% due 1/15/1998 4,830
2,600 Bucks County, Pennsylvania, IDA, Revenue Bonds (Dunmore Corp. Project),
VRDN, 3.95% due 9/01/2012 (a) 2,600
Carbon County, Pennsylvania, IDA, Resource Recovery Revenue Bonds
(Panther Creek Partners), CP, AMT:
6,200 Series A, 3.85% due 10/07/1997 6,200
4,050 Series A, 3.80% due 10/16/1997 4,050
2,550 Series A, 3.70% due 1/23/1998 2,550
14,540 Series B, 3.80% due 11/19/1997 14,540
800 Chester County, Pennsylvania, IDA, IDR (Archdiocese of Philadelphia), VRDN,
4.10% due 7/01/2027 (a) 800
Delaware County, Pennsylvania, IDA, PCR (Philadelphia Electric Company):
3,300 CP, 3.65% due 10/09/1997 3,300
2,700 Refunding, VRDN, Series A, 3.95% due 8/01/2016 (a) 2,700
2,000 Delaware County, Pennsylvania, Revenue Bonds (Widener University Inc.),
VRDN, 4.10% due 7/01/2014 (a) 2,000
Eagle Tax-Exempt Trust, Pennsylvania, VRDN (a):
4,300 GO, Series 94, Class 3803, 4.23% due 5/01/2008 4,300
5,700 GO, Series 96-C, 4.23% due 5/01/2014 5,700
9,800 Housing Resident Development, Series 92, 3.80% due 1/01/1998 9,800
5,800 Housing Security, Series A, 4.08% due 7/01/2025 5,800
3,570 East Hempfield Township, Pennsylvania, IDA, Revenue Bonds (Steckel
Printing Inc.), VRDN, AMT, 4.25% due 2/01/2013 (a) 3,570
Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN (a):
15,710 4.05% due 12/01/2028 (d) 15,710
3,500 Sub-Series B-16, 4.20% due 3/01/2024 3,500
3,500 Sub-Series F-7, 4.15% due 3/01/2024 3,500
5,000 Sub-Series F-8, 4.15% due 3/01/2024 5,000
7,200 Sub-Series G-9, 4.15% due 3/01/2024 7,200
Erie County, Pennsylvania, IDA, Revenue Bonds, VRDN, AMT (a):
2,700 (McInnes Steel Co.), 4.10% due 11/01/2001 2,700
2,250 (Reed Manufacturing), 3.95% due 6/01/2006 2,250
300 Geisinger, Pennsylvania, Health System Revenue Bonds, VRDN,
Series B, 4.05% due 7/01/2022 (a) 300
15,500 Harrisburg, Pennsylvania, Revenue Bonds (Pooled Financing Authority
Fund), VRDN, 4.15% due 7/01/2021 (a) 15,500
3,000 Jeannette, Pennsylvania, Health Service Authority, Hospital Revenue
Bonds (Jeannette District Memorial Hospital), VRDN, Series B, 4.10% due
11/01/2018 (a) 3,000
6,390 Lackawanna County, Pennsylvania, Revenue Refunding Bonds, VRDN,
4.25% due 9/15/2020 (a) 6,390
5,940 Lancaster County, Pennsylvania, Hospital Authority, Health Center
Revenue Bonds (Masonic Homes Project), VRDN, 4.05% due 7/01/2027 (a) 5,940
1,400 Montgomery County, Pennsylvania, GO, VRDN, UT, 3.75% due 11/15/2001 (a) 1,400
18,000 Montgomery County, Pennsylvania, Higher Education and Health Authority
Revenue Bonds (Pennsylvania Higher Education & Health Loan), VRDN,
Series A, 4.05% due 8/01/2021 (a) 18,000
1,700 Montgomery County, Pennsylvania, IDA, Revenue Bonds (Merck & Co.
Project), VRDN, Series A, 4.55% due 10/01/2017 (a) 1,700
4,810 Montgomery County, Pennsylvania, IDA, Revenue Refunding Bonds (Commercial
Development -- Valley Forge Plaza), VRDN, 3.95% due 12/01/2013 (a) 4,810
3,850 Montour County, Pennsylvania, IDA, PCR (Merck & Co. Project), VRDN,
Series A, 4.30% due 10/01/2003 (a) 3,850
3,500 Moon, Pennsylvania, IDA, Commercial Development Revenue Bonds (One
Thorn Run Center Project), VRDN, Series A, 4.15% due 11/01/2015 (a) 3,500
Northampton County, Pennsylvania, IDA, Revenue Bonds, VRDN, AMT (a):
4,420 (MCS Industries Inc.), 4.25% due 6/01/2012 4,420
4,750 Refunding (Reale Association Project), 4.25% due 4/01/2012 4,750
5,000 Northeastern, Pennsylvania, Hospital and Education Authority Revenue Bonds
(Allhealth Pooled Financing Program), VRDN, 4.15% due 7/01/2026 (a) 5,000
1,000 Oil City, Pennsylvania (School District), UT, 3.95% due 8/27/1998 1,000
Pennsylvania Economic Development Financing Authority, Economic
Development Revenue Bonds, VRDN (a):
5,000 AMT, Series D-7, 4.25% due 8/01/2022 5,000
2,000 AMT, Series F-5, 4.25% due 12/01/2006 2,000
1,200 (Erie Forge & Steel Project), AMT, Series B-4, 4.25% due 12/01/1999 1,200
1,600 (Erie Plating Company Project), AMT, Series B-5, 4.25% due 12/01/2004 1,600
4,500 (Gutchess Hardwoods Project), Series B, 3.90% due 4/01/2005 4,500
1,090 (Wendt Dunnington Co. Project), AMT, 4.05% due 9/01/2010 1,090
Pennsylvania Energy Development Authority, Energy Development Revenue
Bonds, VRDN, AMT (a):
5,650 (BIW Ebensbury Project), 4.20% due 12/01/2011 5,650
14,000 (Piney Creek Project), Series A, 4.20% due 12/01/2011 14,000
900 (Piney Creek Project), Series C, 4.20% due 12/01/2011 900
Pennsylvania State Higher Education Assistance Agency, Student Loan
Revenue Bonds, VRDN (a):
3,100 AMT, Series A, 4.10% due 1/01/2018 3,100
15,000 AMT, Series A, 3.85% due 3/01/2027 15,000
1,800 Series C, 4.10% due 7/01/2018 1,800
3,400 Pennsylvania State Higher Educational Facilities Authority, College and
University Revenue Refunding Bonds (Pennsylvania College of Optometry), VRDN,
3.95% due 3/01/2026 (a) 3,400
300 Pennsylvania State Higher Educational Facilities Authority, Revenue Refunding
Bonds (Carnegie Mellon University), VRDN, Series D, 4.05% due 11/01/2030 (a) 300
2,560 Philadelphia, Pennsylvania, Authority for Industrial Development Revenue
Bonds (David Michael & Co. Inc.), VRDN, AMT, 4.25% due 10/01/2006 (a) 2,560
2,185 Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities
Authority, Hospital Revenue Refunding Bonds (Pennsylvania Hospital), VRDN,
Series B, 4.05% due 7/01/2023 (a)(c) 2,185
4,425 Philadelphia, Pennsylvania, Redevelopment Authority, M/F Housing Revenue
Refunding Bonds (Courts Project), VRDN, Series A, 3.95% due 6/01/2025 (a) 4,425
5,000 Philadelphia, Pennsylvania, School District, TRAN, 4.50% due 6/30/1998 5,023
15,000 Philadelphia, Pennsylvania, TRAN, Series A, 4.50% due 6/30/1998 15,054
1,360 Pittsburgh, Pennsylvania, Urban Redevelopment Authority, S/F Mortgage
Revenue Bonds, AMT, Series C, 3.80% due 12/01/1997 (e) 1,360
Schuylkill County, Pennsylvania, IDA, Resource Recovery Revenue
Refunding Bonds (Northeastern Power Co.), VRDN, AMT, Series B (a):
600 3.80% due 12/01/2022 600
12,000 4.10% due 12/01/2022 12,000
3,400 Scranton-Lackawanna, Pennsylvania, Health and Welfare Authority,
Hospital Facilities Revenue Refunding Bonds (Mercy Health Systems),
VRDN, Series A, 4.05% due 12/01/2021 (a) 3,400
11,000 Temple University of the Commonwealth System of Higher Education,
Pennsylvania, University Funding Obligations, 4.75% due 5/18/1998 11,057
Venango, Pennsylvania, IDA, Resource Recovery Revenue Bonds (Scrubgrass
Progress), CP, AMT:
2,000 3.70% due 10/16/1997 2,000
2,000 3.75% due 12/19/1997 2,000
5,100 Refunding, Series A, 3.85% due 11/10/1997 5,100
7,300 Refunding, Series A, 3.80% due 12/19/1997 7,300
3,000 Washington County, Pennsylvania, Lease Authority Revenue Bonds (Municipal
Facilities), VRDN, Sub-Series B-1, 4.05% due 12/15/2018 (a) 3,000
2,500 York, Pennsylvania, General Pooled Financing Authority Revenue Bonds,
VRDN, 4.05% due 9/01/2026 (a) 2,500
----------
Puerto Rico -- 8,000 Puerto Rico Electric Power Authority, VRDN, Series SGA-43, 3.90% due
2.0% 7/01/2022 (a)(b) 8,000
----------
Total Investments (Cost -- $398,149*) -- 100.9% 398,149
Liabilities in Excess of Other Assets -- (0.9%) (3,380)
----------
Net Assets -- 100.0% $394,769
==========
(a) The interest rate is subject to change periodically based on certain indexes. The interest rate shown is the rate in
effect at September 30, 1997.
(b) MBIA Insured.
(c) FGIC Insured.
(d) FSA Insured.
(e) GNMA Collateralized.
* Cost for Federal income tax purposes.
Portfolio Abbreviations for CMA Pennsylvania Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
CP Commercial Paper
GO General Obligation Bonds
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
S/F Single-Family
TRAN Tax Revenue Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA Pennsylvania Municipal Money Fund
Statement of Assets and Liabilities as of September 30, 1997
<S> <C> <C>
Assets:
Investments, at value (identified cost -- $398,149,020) (Note 1a) $398,149,020
Cash 50,663
Interest receivable 2,000,647
Prepaid registration fees and other assets (Note 1d) 24,370
-------------
Total assets 400,224,700
-------------
Liabilities:
Payables:
Securities purchased $5,079,546
Investment adviser (Note 2) 177,941
Distributor (Note 2) 95,747 5,353,234
-------------
Accrued expenses and other liabilities 102,520
-------------
Total liabilities 5,455,754
-------------
Net Assets $394,768,946
=============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $39,481,775
Paid-in capital in excess of par 355,335,648
Accumulated realized capital losses -- net (Note 4) (48,477)
-------------
Net Assets -- Equivalent to $1.00 per share based on 394,817,748 shares of
beneficial interest outstanding $394,768,946
=============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA Pennsylvania Municipal Money Fund
Statement of Operations for the Six Months Ended September 30, 1997
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $7,702,723
Expenses:
Investment advisory fees (Note 2) $1,020,795
Distribution fees (Note 2) 250,150
Transfer agent fees (Note 2) 53,909
Accounting services (Note 2) 34,967
Custodian fees 23,904
Registration fees (Note 1d) 19,996
Professional fees 17,762
Printing and shareholder reports 9,640
Pricing fees 3,668
Trustees' fees and expenses 3,387
Other 3,940
-------------
Total expenses 1,442,118
-------------
Investment income -- net 6,260,605
Realized Loss on Investments -- Net (Note 1c) (24,090)
-------------
Net Increase in Net Assets Resulting from Operations $6,236,515
=============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA Pennsylvania Municipal Money Fund
Statements of Changes in Net Assets
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: Sept. 30, 1997 March 31, 1997
<S> <C> <C>
Operations:
Investment income -- net $6,260,605 $11,528,806
Realized loss on investments -- net (24,090) (1,453)
--------------- ---------------
Net increase in net assets resulting from operations 6,236,515 11,527,353
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income -- net (6,260,605) (11,525,719)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (6,260,605) (11,525,719)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 857,570,471 1,355,806,175
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 6,260,993 11,525,515
--------------- ---------------
863,831,464 1,367,331,690
Cost of shares redeemed (897,934,497) (1,355,166,461)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial interest
transactions (34,103,033) 12,165,229
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets (34,127,123) 12,166,863
Beginning of period 428,896,069 416,729,206
--------------- ---------------
End of period $394,768,946 $428,896,069
=============== ===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA Pennsylvania Municipal Money Fund
Financial Highlights
For the
Six
The following per share data and ratios have Months
been derived from information provided in the Ended
financial statements. Sept. 30, For the Year Ended March 31,
1997 1997 1996 1995 1994
Increase (Decrease) in Net Asset Value:
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
----------- ----------- ----------- ----------- -----------
Investment income -- net .02 .03 .03 .03 .02
----------- ----------- ----------- ----------- -----------
Total from investment operations .02 .03 .03 .03 .02
----------- ----------- ----------- ----------- -----------
Less dividends from investment income -- net (.02) (.03) (.03) (.03) (.02)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
=========== =========== =========== =========== ===========
Total Investment Return 3.07%* 2.92% 3.19% 2.65% 1.87%
=========== =========== =========== =========== ===========
Ratios to Average Net Assets:
Expenses .71%* .71% .72% .71% .72%
=========== =========== =========== =========== ===========
Investment income -- net 3.07%* 2.86% 3.13% 2.64% 1.85%
=========== =========== =========== =========== ===========
Supplemental Data:
Net assets, end of period (in thousands) $394,769 $428,896 $416,729 $353,635 $336,853
=========== =========== =========== =========== ===========
*Annualized.
See Notes to Financial Statements.
</TABLE>
CMA Pennsylvania Municipal Money Fund
Notes to Financial Statements
1. Significant Accounting Policies:
CMA Pennsylvania Municipal Money Fund (the "Fund") is part of CMA
Multi-State Municipal Series Trust (the "Trust"). The Fund is
registered under the Investment Company Act of 1940 as a non-
diversified, open-end management investment company. These unaudited
financial statements reflect all adjustments which are, in the opinion
of management, necessary to a fair statement of the results for the
interim period presented. All such adjustments are of a normal
recurring nature. The following is a summary of significant accounting
policies followed by the Fund.
(a) Valuation of investments -- Investments are valued at amortized
cost, which approximates market value. For the purpose of valuation,
the maturity of a variable rate demand instrument is deemed to be the
next coupon date on which the interest rate is to be adjusted. In the
case of a floating rate instrument, the remaining maturity is the
demand notice payment period.
(b) Income taxes -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(c) Security transactions and investment income -- Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
premium and discount) is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
(d) Prepaid registration fees -- Prepaid registration fees are charged
to expense as the related shares are issued.
(e) Dividends and distributions to shareholders -- The Fund declares
dividends daily and reinvests daily such dividends (net of non-
resident alien tax and back-up withholding tax withheld) in additional
fund shares at net asset value. Dividends are declared from the total
of net investment income, excluding discounts earned other than
original issue discounts. Net realized capital gains, if any, are
normally distributed annually after deducting prior years' loss
carryforward. The Fund may distribute capital gains more frequently
than annually in order to maintain the Fund's net asset value at $1.00
per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned subsidiary
of Merrill Lynch & Co., Inc. ("ML & Co."), which is the limited
partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee based upon the average daily
value of the Fund's net assets, at the following annual rates: 0.50%
of the first $500 million of average daily net assets; 0.425% of
average daily net assets in excess of $500 million but not exceeding
$1 billion; and 0.375% of average daily net assets in excess of $1
billion.
Pursuant to the Distribution and Shareholder Servicing Plan in
compliance with Rule 12b-1 under the Investment Company Act of 1940,
Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S") receives a
distribution fee from the Fund at the end of each month at the annual
rate of 0.125% of average daily net assets of the Fund. The
distribution fee is to compensate MLPF&S financial consultants and
other directly involved branch office personnel for selling shares of
the Fund and for providing direct personal services to shareholders.
The distribution fee is not compensation for the administrative and
operational services rendered to the Fund by MLPF&S in processing
share orders and administering shareholder accounts.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-owned
subsidiary of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, MLFDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the period
corresponds to the amounts included in the Statements of Changes in
Net Assets for net proceeds from sale of shares and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per share.
4. Capital Loss Carryforward:
At March 31, 1997, the Fund had a net capital loss carryforward of
approximately $24,000, of which $13,000 expires in 2002 and $11,000
expires in 2003. This amount will be available to offset like amounts
of any future taxable gains.
CMA Pennsylvania Municipal Money Fund
Officers and Trustees
Arthur Zeikel -- President and Trustee
Ronald W. Forbes -- Trustee
Cynthia A. Montgomery -- Trustee
Charles C. Reilly -- Trustee
Kevin A. Ryan -- Trustee
Richard R. West -- Trustee
Terry K. Glenn -- Executive Vice President
Vincent R. Giordano -- Senior Vice President
Edward J. Andrews -- Vice President
Donald C. Burke -- Vice President
Peter J. Hayes -- Vice President
Kenneth A. Jacob -- Vice President
Steven T. Lewis -- Vice President
Darrin J. SanFillippo -- Vice President
Kevin A. Schiatta -- Vice President
Helen Marie Sheehan -- Vice President
Gerald M. Richard -- Treasurer
Robert Harris -- Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
* For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
