CMA
CMA North Carolina
Municipal Money Fund
Semi-Annual Report
September 30, 1994
Merrill Lynch Bull Logo
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 con-
sidered 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.
CMA North Carolina
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
<PAGE>
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1994, CMA North
Carolina Municipal Money Fund paid shareholders a net annualized
yield of 2.16%*. As of September 30, 1994, the Fund's 7-day yield
was 2.81%.
The Environment
Concerns of increasing inflationary pressures continued to prompt
volatility in the US stock and bond markets during the July--
September period. In addition, the weakness of the US dollar in
foreign exchange markets caused intermittent stock and bond market
declines during the period. While the immediate concerns regarding
the US dollar had diminished by late July, the possibility of
continued tightening by the Federal Reserve Board persisted for most
of the period. However, a lower-than-expected rate of growth
reported for the US economy during the second calendar quarter
allayed inflationary concerns to some degree, despite the fifth
increase this year in short-term interest rates made by the central
bank in mid-August. Inflationary expectations surfaced again with
the announcement of significant upward revision in industrial
production and capacity utilization for the May--July period. When
the central bank did not raise short-term interest rates at the late
September Federal Open Market Committee meeting, financial markets
rallied on the expectation that the US economy was not overheating
and therefore significant further monetary policy tightening would
not be necessary.
Despite the stronger-than-expected industrial production results,
other economic data suggest that while the economic recovery is
continuing, it is losing some momentum. Consumer spending is
increasing, but at a relatively slow pace, and existing home sales
may have peaked. Inflation remains subdued at the retail level. In
the industrial sector, the sharp increase in manufacturing
production in August was largely the result of a strong increase in
motor vehicle assemblies, which may level off in the weeks ahead. On
balance, it appears that the growth in US industry is progressing at
a steady, modest rate.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
<PAGE>
Despite evidence of a moderating trend in the US economy, Chairman
Greenspan indicated in his July Humphrey-Hawkins testimony that the
central bank would prefer to err on the side of too much monetary
tightening rather than too little. In the weeks ahead, investors
will continue to assess economic data and inflationary trends in
order to gauge whether further increases in short-term interest
rates are imminent. Continued indications of moderate and
sustainable levels of economic growth would be positive for the US
capital markets.
Investment Outlook and Strategy
During the six-month period ended September 30, 1994, the US economy
continued to surprise the marketplace with its resiliency.
Manufacturing provided a strong catalyst for growth, and continued
strength in housing and automobile sales also provided the impetus
for the Federal Reserve Board to continue its restrictive monetary
policy initiated in February. This was accomplished by raising the
Federal Funds rate by 25 basis points (0.25%) to 3.75% in April,
with more aggressive 50 basis point increases in May and August to
its current rate of 4.75%. In addition, the Federal Reserve Board
raised the discount rate by 50 basis points in both May and August.
Additionally, during the period the yield on the one-year US
Treasury bill rose approximately 155 points to 5.95% by September
30, 1994.
During the September quarter, the State of North Carolina continued
to exercise budget discipline and improve on its strong financial
condition. Revenues in 1993--1994 exceeded estimates and at the
close of the July fiscal year-end, the general fund had a balance of
$887.5 million, or about 10% of revenues. The North Carolina
legislature is presently in the midst of finalizing the fiscal
1994--1995 state budget which is estimated to appropriate approximately
$548 million for capital purposes. Furthermore, the State continues
to enjoy strong employment growth in high-tech, manufacturing and
financial services, further reducing its historical dependence on
the agriculture and textile industries.
Additionally, in May, the House Finance Committee voted 20 to 17
against cutting the State intangibles tax. The Senate voted earlier
this year to repeal the tax and replace it with a 1% surtax on bank
deposit interest, stock dividends and other investment income.
Although House leaders could manage to resurrect the proposal, it is
unlikely that the senate would agree to any compromise on their
plan. Moreover, North Carolina now joins over 30 other states where
local school districts have filed lawsuits challenging school
funding formulas. The suit, filed May 25, charged the State's
funding of education as constitutionally inadequate because it takes
insufficient account of the wealth differences between school
districts.
<PAGE>
CMA North Carolina Money Fund was unable to significantly extend the
portfolio's average maturity during the six-month period ended
September 30, 1994 because of a lack of short-term supply and the
volatility in the Treasury market. The average portfolio maturity,
which began the period in the 35-day range, concluded the period in
the 45-day range. Historically, the Fund was able to extend during
the months of July and August with notes issued by the Commonwealth
of Puerto Rico. However, the Commonwealth will not issue any cash-
flow notes this year. For the September quarter, the issuance of
short-term fixed-rate North Carolina paper totaled $37 million. A
significant part of that issuance was $11 million in Durham, North
Carolina Bond Anticipation Notes maturing February 22, 1995 priced
to yield at 3.55%. We purchased $3.8 million of the notes to provide
both diversification and yield to the portfolio. Additionally, we
will continue to monitor the marketplace for these opportunities and
utilize the Fund's commercial paper to extend out on the yield curve
when prudent.
In Conclusion
We thank you for your continued support of CMA North Carolina
Municipal Money Fund, and we look forward to serving your investment
needs in the future.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President and Portfolio Manager
October 26, 1994
Portfolio Abbreviations for CMA North Carolina Municipal Money Fund
ACES SM Adjustable Convertible Extended Securities
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
COP Certificates of Participation
CP Commercial Paper
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
North Carolina-- $ 1,000 Beaufort County, North Carolina, Industrial Facilities and Pollution Control
89.3% Financing Authority Revenue Bonds (Texasgulf, Inc. Project), VRDN, 3.80%
due 12/01/2000 (a) $ 1,001
2,275 Brunswick County, North Carolina, Refunding Bonds, UT, 4.30% due 3/01/1995 2,280
3,000 Carteret County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR (Texasgulf, Inc. Project), VRDN, 3.60%
due 10/01/2005 (a) 3,000
11,800 Charlotte, North Carolina, Airport Revenue Refunding Bonds, VRDN, Series A,
3.60% due 7/01/2016 (a) 11,800
Craven County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Cravenwood Energy Project), VRDN,
AMT (a):
4,040 Series A, 4% due 5/01/2011 4,040
3,700 Series B, 4% due 5/01/2011 3,700
2,700 Series C, 4% due 5/01/2011 2,700
Cumberland County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Revenue Refunding Bonds (Monsanto Co. Project), VRDN (a):
1,715 3.50% due 6/01/2012 1,715
600 3.50% due 10/01/2014 601
2,524 Duplin County, North Carolina, BAN, 3.90% due 10/26/1994 2,526
Durham County, North Carolina, Public Improvement Bonds:
3,775 Series A, BAN, 4% due 2/22/1995 3,784
1,000 UT, 4.70% due 2/01/1995 1,003
1,000 VRDN, UT, 3.55% due 5/01/2009 (a) 1,000
9,750 FB North Carolina, Floating Trust Certificates, VRDN, Series I, 3.90% due
7/01/2000 (a) 9,750
2,800 Gaston County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Mount Holly Enterprises/Queens G.P. Inc.),
VRDN, AMT, 3.85% due 5/01/2004 (a) 2,800
Granville County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds, VRDN, AMT (a):
4,000 (Mayville Metal Production Project), 3.50% due 5/23/2020 4,000
2,800 (Tuscarora Plastics, Inc. Project), 3.85% due 12/01/2001 2,800
500 Greene County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDA, Revenue Bonds (Federal Paper Board Company, Inc.
Project), VRDN, AMT, 3.80% due 11/01/2009 (a) 500
1,800 Halifax County, North Carolina, BAN, UT, 3.15% due 12/07/1994 1,801
</TABLE>
<PAGE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
North Carolina $ 1,100 Halifax County, North Carolina, Industrial Facilities and Pollution Control
(continued) Financing Authority Revenue Bonds (Exempt Facilities--Westmoreland), VRDN,
3.90% due 12/01/2019 (a) $ 1,100
3,727 Hoke County, North Carolina, BAN, 3.60% due 3/29/1995 3,728
8,300 Iredell County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Rubbermaid Specialty Products, Inc.),
3.85% due 6/01/1995 8,300
3,700 Lenoir County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (West Co. Nebraska, Inc. Project), VRDN,
3.75% due 10/01/2005 (a) 3,700
9,500 Lincoln County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Hof Textiles Inc. Project), VRDN, AMT,
3.75% due 10/01/2011 (a) 9,500
Mecklenberg County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds, VRDN (a):
2,000 (Edgcomb Metals Company Project), 3.675% due 12/01/2009 2,000
1,000 (Flawa Corporation Project), AMT, 3.55% due 12/01/2008 1,000
2,000 New Hanover County, North Carolina, BAN, 3.80% due 6/21/1995 2,000
5,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds,
Series A, 10.625% due 1/01/1995 (b) 5,241
North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds,
Series B, CP:
5,500 3.05% due 10/19/1994 5,500
4,650 3.10% due 11/14/1994 4,650
7,385 3.25% due 11/15/1994 7,384
7,050 3.30% due 11/15/1994 7,050
10,800 3.15% due 12/01/1994 10,800
1,000 3.20% due 1/18/1995 1,000
North Carolina Educational Facilities Finance Agency Revenue Bonds, VRDN (a):
4,150 (Bowman Grey School of Medicine Project), 3.65% due 9/01/2020 4,150
1,500 (Duke University Project), Series A, 3.50% due 6/01/2027 1,500
4,300 (Duke University Project), Series B, 3.50% due 12/01/2021 4,300
3,900 (Various Duke University Projects), Series A, 3.50% due 12/01/2017 3,900
2,700 (Wake Forest University Project), 3.40% due 1/01/2009 2,700
North Carolina Medical Care Commission, Hospital Revenue Bonds (a):
800 (Carol Woods Project), VRDN, 3.80% due 4/01/2021 800
3,300 (Duke University Hospital), VRDN, Series B, 3.50% due 6/01/2015 3,300
2,130 (Duke University Hospital), VRDN, Series D, 3.50% due 6/01/2015 2,130
9,000 (North Carolina Baptist Hospital Project), Series B, VRDN, 3.65% due
6/01/2022 9,000
8,800 (Park Ridge Hospital Project), VRDN, 3.70% due 8/15/2018 8,800
8,500 (Pooled Equipment Financing Project), ACES, 3.70% due 12/01/2025 8,500
5,650 Refunding (Duke University Hospital Project), VRDN, Series A, 3.50% due
6/01/2023 5,650
9,500 Refunding (Moses H. Cone Memorial Hospital Project), VRDN, 3.65% due
10/01/2023 9,500
600 North Carolina Medical Care Commission, Hospital Revenue Bonds (Wilson
Memorial Hospital Project), 5.80% due 11/01/1994 602
</TABLE>
<PAGE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
North Carolina $ 700 Rowan County, North Carolina, Industrial Facilities and Pollution Control
(concluded) Financing Authority Revenue Bonds (Reynolds Metals Company Project),
3.50% due 12/01/1994 (a) $ 700
8,400 Union County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR, Refunding (Square D Co. Project), VRDN, 3.55% due
3/01/2003 (a) 8,400
4,500 University of North Carolina, Chapel Hill Foundation, Inc., COP, CP, 3.05% due
10/18/1994 4,500
4,250 University of North Carolina, Chapel Hill Revenue Bonds (Kenan Memorial
Stadium), VRDN, 3.75% due 11/01/2007 (a) 4,250
University of North Carolina, Chapel Hill, School of Medicine and Ambulatory
Care Clinic Revenue Bonds:
1,000 CP, 3.20% due 10/20/1994 1,000
3,000 VRDN, 3.65% due 10/01/2002 (a) 3,000
Wake County, North Carolina, Industrial Facilities and Pollution Control Financing
Authority Revenue Bonds (Carolina Power and Light Company Project),
VRDN (a):
2,000 3.65% due 3/01/2017 2,000
4,500 Series C, 3.60% due 10/01/2015 4,500
2,000 Wayne County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Revenue Refunding Bonds (General Signal), VRDN, 3.55%
due 12/01/2000 (a) 2,000
1,350 Winston-Salem, North Carolina, Urban Redevelopment, Mortgage Revenue
Refunding Bonds (Summit Square Garden Apartments), CP, 3% due 10/17/1994 1,350
Winston-Salem, North Carolina, Water and Sewer System Revenue Bonds:
6,000 CP, 3.05% due 10/l9/1994 6,000
4,900 VRDN, 3.50% due 6/01/2014 (a) 4,900
<PAGE>
Puerto Rico-- 8,900 Puerto Rico Commonwealth, Government Development Bank, Revenue
12.8% Refunding Bonds, VRDN, 3.55% due 12/01/2015 (a) 8,900
5,000 Puerto Rico Commonwealth, Highway and Transportation Authority, Highway
Revenue Bonds, VRDN, Series X, 3.25% due 7/01/1999 (a) 5,000
Puerto Rico Industrial, Medical and Environmental Pollution Control Facilities,
Financing Authority Revenue Bonds:
2,000 (Anna G. Mendez Foundation), CP, 2.80% due 10/17/1994 2,000
2,250 (Merck & Co. Inc. Project), Series A, 2.70% due 12/01/1994 2,250
12,500 (Reynolds Metals Co. Project), 4% due 9/01/1995 12,506
3,800 Puerto Rico Maritime Shipping Authority, CP, 2.95% due 10/17/1994 3,800
Total Investments (Cost--$275,642*)--102.1% 275,642
Liabilities in Excess of Other Assets--(2.1%) (5,562)
--------
Net Assets--100.0% $270,080
========
(a)The interest rate is subject to change periodically based on certain indexes.
The interest rate shown is the interest rate in effect at September 30, 1994.
(b)Prerefunded.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1994
<S> <C> <C>
Assets:
Investments, at value (identified cost--$275,641,936) (Note 1a) $275,641,936
Cash 265,438
Receivables:
Interest $ 1,246,024
Securities sold 601,816 1,847,840
------------
Deferred organization expenses (Note 1d) 17,459
Prepaid registration fees and other assets (Note 1d) 918
------------
Total assets 277,773,591
------------
Liabilities:
Payables:
Securities purchased 7,500,000
Investment adviser (Note 2) 91,535
Distributor (Note 2) 70,532 7,662,067
------------
Accrued expenses and other liabilities 31,762
------------
Total liabilities 7,693,829
------------
Net Assets $270,079,762
============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares authorized $ 27,010,828
Paid-in capital in excess of par 243,097,448
Undistributed investment income--net 374
Accumulated realized capital losses--net (Note 4) (28,888)
------------
Net Assets--Equivalent to $1.00 per share based on 270,108,276 shares of beneficial
interest outstanding $270,079,762
============
<PAGE>
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1994
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 4,078,997
Expenses:
Investment advisory fees (Note 2) $ 735,733
Distribution fees (Note 2) 182,667
Transfer agent fees (Note 2) 32,647
Accounting services (Note 2) 30,305
Professional fees 20,496
Registration fees (Note 1d) 17,076
Custodian fees 14,477
Printing and shareholder reports 11,066
Amortization of organization expenses (Note 1d) 3,542
Pricing fees 3,059
Trustees' fees and expenses 1,784
Other 2,645
------------
Total expenses before reimbursement 1,055,497
Reimbursement of expenses (Note 2) (147,147)
------------
Total expenses after reimbursement 908,350
-------------
Investment income--net 3,170,647
Realized Loss on Investments--Net (Note 1c) (13,460)
-------------
Net Increase in Net Assets Resulting from Operations $ 3,157,187
=============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the Year
Months Ended Ended
Sept. 30, March 31,
Increase (Decrease) in Net Assets: 1994 1994
<S> <C> <C>
Operations:
Investment income--net $ 3,170,647 $ 4,383,724
Realized loss on investments--net (13,460) (14,754)
------------ ------------
Net increase in net assets resulting from operations 3,157,187 4,368,970
------------ ------------
Dividends to Shareholders (Note 1e):
Investment income--net (3,170,571) (4,380,466)
------------ ------------
Net decrease in net assets resulting from dividends to shareholders (3,170,571) (4,380,466)
------------ ------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 400,933,818 819,514,191
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 3,170,556 4,380,479
------------ ------------
404,104,374 823,894,670
Cost of shares redeemed (427,463,060) (765,815,611)
------------ ------------
Net increase (decrease) in net assets derived from beneficial interest
transactions (23,358,686) 58,079,059
------------ ------------
Net Assets:
Total increase (decrease) in net assets (23,372,070) 58,067,563
------------ ------------
Beginning of period 293,451,832 235,384,269
------------ ------------
End of period* $270,079,762 $293,451,832
============ ============
<FN>
*Undistributed investment income--net $ 374 $ 298
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
For the Period
The following per share data and ratios have been derived Six Months May 28,
from information provided in the financial statements. Ended 1991++ to
Sept. 30, For the Year Ended March 31, March 31,
Increase (Decrease) in Net Asset Value: 1994 1994 1993 1992
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- ---------
Investment income--net .01 .02 .02 .03
--------- --------- --------- ---------
Total from investment operations .01 .02 .02 .03
--------- --------- --------- ---------
Less dividends:
Investment income--net (.01) (.02) (.02) (.03)
--------- --------- --------- ---------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= =========
Total Investment Return 2.16%* 1.85% 2.25% 3.49%*
========= ========= ========= =========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding distribution fees .49%* .48% .45% .33%*
========= ========= ========= =========
Expenses, net of reimbursement .62%* .61% .57% .45%*
========= ========= ========= =========
Expenses .72%* .71% .73% .83%*
========= ========= ========= =========
Investment income--net 2.15%* 1.84% 2.20% 3.25%*
========= ========= ========= =========
Supplemental Data:
Net assets, end of period (in thousands) $ 270,080 $ 293,452 $ 235,384 $ 221,060
========= ========= ========= =========
<FN>
*Annualized.
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA North Carolina 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. 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) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense on a straight-
line basis over a five-year period. Prepaid registration fees are
charged to expense as the related shares are issued.
(e) Dividends to shareholders--The Fund declares dividends daily and
reinvests daily such dividends (net of non-resident alien 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.
<PAGE>
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. ("ML & Co."). The limited partners
are ML & Co. and Fund Asset Management, Inc. ("FAMI"), which is also
an indirect wholly-owned subsidiary of ML & Co.
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. For the six months ended September 30, 1994, FAM earned
fees of $735,733, of which $147,147 was voluntarily waived.
The most restrictive annual expense limitation requires that the
Adviser reimburse the Fund to the extent the Fund's expenses
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) exceed in any fiscal year 2.5%
of the Fund's first $30 million of average daily net assets, 2.0% of
the Fund's next $70 million of average daily net assets, and 1.5% of
the average daily net assets in excess thereof. No fee payment will
be made to the Investment Adviser during any year which will cause
such expenses to exceed the pro rata expense limitation at the time
of such payment.
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.
<PAGE>
Financial Data Services, Inc. ("FDS"), 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, FAMI, PSI, MLPF&S, FDS, 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, 1994, the Fund had a net capital loss carryforward of
approximately $15,400, of which $5,100 expires in 2001 and $10,300
expires in 2002. This amount will be available to offset like
amounts of any future taxable gain.
CMA NORTH CAROLINA 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
Kevin A. Schiatta--Vice President
Helen Marie Sheehan--Vice President
Gerald M. Richard--Treasurer
Robert Harris--Secretary
<PAGE>
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, Massachusetts 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
