CMA NORTH CAROLINA
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 1997
[FUND LOGO]
[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 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 North Carolina
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011 #16057 -- 9/97
[RECYCLE LOGO]
Printed on post-consumer recycled paper
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1997, CMA North Carolina
Municipal Money Fund paid shareholders a net annualized yield of
3.04%*. As of September 30, 1997, the Fund's 7-day yield was 3.23%.
Economic Environment and
Investment Strategy
In August, North Carolina lawmakers finally approved an $11.4 billion
budget for fiscal year 1998. Specifically, legislators agreed
to cut $150 million in taxes and to protect three trust funds that
some legislators were trying to tap. In addition, officials worked to
push through a statewide referendum on a general obligation bond for
water projects. The tentative $1 billion water/sewer bond bill
contains several provisions designed to ensure that the local
governments' portion of the debt is repaid. Under the proposal, $800
million in bond proceeds would be available to cities and counties to
upgrade water, sewer and wastewater treatment systems. The remaining
$200 million would be used to boost the state's existing revolving
loan fund for clean water projects and to meet matching requirements
for Federal grants. The proposal would be the third major general
obligation bond authorization in a little more than a year in North
Carolina. Voters approved $1.8 billion in school general obligations
and $950 million in highway general obligations in elections last
November.
The state's non-farm employment in August rose 2.5% from 12 months
prior, an increase of 86,100 jobs. Furthermore, average hourly
earnings in North Carolina's manufacturing sector were $11.38 for the
same period, an increase of 1.7% from a year ago. These positive
factors have state economists predicting that the economy, which grew
3.8% in 1996, will grow 3.8% in 1997 and another 3.1% in 1998. The
leading growth sectors are expected to be services, finance,
insurance, real estate and retail trade. They also forecast a net
employment growth of 84,000 in 1997, a 2.3% increase over the
1996 level.
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, staggered pockets 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 last half of the six-month 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 should outperform variable rate products over the next six
months. During the six-month period ended September 30, 1997, the
state of North Carolina's issuance totaled $96.1 million. The Fund's
average portfolio maturity, which decreased to the 20-day range by
early to mid-July, ended the period in the 35-day range.
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 continued support of CMA North Carolina
Municipal Money Fund, and we look forward to serving your investment
needs in the future.
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
October 29, 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 North Carolina Municipal Money Fund
Schedule of Investments as of September 30, 1997 (in Thousands)
Face Value
State Amount Issue (Note 1a)
<S> <C> <C> <C>
North $1,000 Beaufort County, North Carolina, Industrial Facilities and Pollution Control
Carolina -- 90.9% Financing Authority Revenue Bonds (Texasgulf, Inc. Project), VRDN, 4.15% due
12/01/2000 (a) $1,000
4,500 Bertie County, North Carolina (County Water District), BAN, UT, 3.824% due
2/11/1998 4,501
3,300 Buncombe County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Revenue Refunding Bonds (Cooper Industries), VRDN,
4.20% due 1/01/2006 (a) 3,300
Buncombe County, North Carolina, VRDN (a):
410 4.05% due 6/01/2000 410
455 4.05% due 6/01/2002 455
500 4.05% due 6/01/2004 500
525 4.05% due 6/01/2005 525
580 4.05% due 6/01/2007 580
435 4.05% due 6/01/2008 435
640 4.05% due 6/01/2009 640
740 4.05% due 6/01/2012 740
815 4.05% due 6/01/2014 815
900 4.05% due 6/01/2016 900
6,600 Cabarrus County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Industrial Revenue Bonds (S&D Coffee Inc. Project), VRDN,
AMT, 4.25% due 9/01/2011 (a) 6,600
3,000 Carteret County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, PCR (Texasgulf, Inc. Project), VRDN, 4.175% due
10/01/2005 (a) 3,000
800 Catawba County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Lukens Steel Co. Project), VRDN, AMT,
4.10% due 12/01/2009 (a) 800
4,900 Charlotte, North Carolina, Airport Revenue Refunding Bonds, VRDN, Series A,
4.10% due 7/01/2016 (a)(b) 4,900
Craven County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Resource Bonds (Cravenwood Energy Project), VRDN,
AMT (a):
4,700 Series B, 4.10% due 5/01/2011 4,700
3,400 Series C, 4.10% due 5/01/2011 3,400
Cumberland County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Revenue Refunding Bonds (Monsanto Co. Project), VRDN (a):
1,715 3.95% due 6/01/2012 1,715
600 3.95% due 10/01/2014 600
Durham County, North Carolina, Public Improvement Bonds, VRDN, UT (a):
1,000 3.95% due 5/01/2009 1,000
1,000 3.95% due 5/01/2010 1,000
1,000 3.95% due 5/01/2011 1,000
772 Freemont, North Carolina, BAN, UT, 3.70% due 1/21/1998 772
2,000 Gaston County, North Carolina, COP (Mount Holly Enterprises/Queens G.P. Inc.),
AMT, VRDN, 4.25% due 5/01/2004 (a) 2,000
Gaston County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds, VRDN (a):
2,000 (Gold Medal Homes), 4% due 12/01/2009 2,000
200 (Mount Holly Enterprises/Queens G.P. Inc.), AMT, 4.25% due 5/01/2004 200
Granville County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds, VRDN, AMT (a):
4,000 (Mayville Metal Production Project), 3.85% due 5/23/2020 4,000
1,840 (Tuscarora Plastics, Inc. Project), 4.25% due 12/01/2001 1,840
500 Greene County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDA, Revenue Bonds (Federal Paper Board Company, Inc.
Project), VRDN, AMT, 4.25% due 11/01/2009 (a) 500
Guilford County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds, VRDN, AMT (a):
900 (Pharmagraphics Inc. Project), 4.10% due 9/01/2010 900
7,500 (US Woven Label Project), 4.25% due 1/01/2013 7,500
22,715 Halifax County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Exempt Facilities - Westmoreland Project),
VRDN, AMT, 4.15% due 12/01/2019 (a) 22,715
3,416 Holly Springs, North Carolina, BAN, 3.79% due 6/24/1998 3,416
4,000 Iredell County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Purina Mills Inc. Project), VRDN, AMT,
4.10% due 7/01/2020 (a) 4,000
1,380 Johnston County, North Carolina, COP (Judicial Annex and Healthcare Project),
4.15% due 9/01/1998 (b) 1,384
3,700 Lenoir County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (West Co. Nebraska, Inc. Project), VRDN,
4.25% due 10/01/2005 (a) 3,700
8,900 Lincoln County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Hof Textiles Inc. Project), VRDN, AMT,
4% due 10/01/2011 (a) 8,900
8,500 Mecklenberg County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR (Rexroth Corporation Project), VRDN, AMT, 4.25%
due 9/01/2016 (a) 8,500
Mecklenberg County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds, VRDN (a):
2,000 (Edgecomb Metals Company Project), 4.05% due 12/01/2009 2,000
900 (Flawa Corporation Project), AMT, 3.90% due 12/01/2008 900
1,500 (Griffith Micro Science Project), AMT, 4.10% due 11/01/2007 1,500
905 New Hanover County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Interroll Corp. Project), VRDN, 4.25%
due 11/01/2003 (a) 905
North Carolina Educational Facilities Finance Agency Revenue Bonds (Duke
University Project), VRDN (a):
1,500 Series A, 4% due 6/01/2027 1,500
5,000 Series B, 4% due 12/01/2021 5,000
2,000 North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds
(Cabarrus Memorial Hospital Project), VRDN, 4.15% due 3/01/2012 (a) 2,000
North Carolina Medical Care Commission, Hospital Revenue Bonds, VRDN (a):
3,700 (Carol Woods Project), 4.10% due 4/01/2021 3,700
3,300 (Duke University Hospital), Series B, 4% due 6/01/2015 3,300
3,500 (Duke University Hospital), Series C, 4% due 6/01/2015 3,500
2,130 (Duke University Hospital), Series D, 4% due 6/01/2015 2,130
3,500 (Pooled Financing Project), ACES, 4.05% due 4/01/2012 3,500
200 Refunding (Moses H. Cone Memorial Hospital Project), 4.05% due 10/01/2023 200
North Carolina Municipal Power Agency, Electric Revenue Bonds
(No. 1 Catawba):
24,500 CP, 3.85% due 10/24/1997 24,500
3,000 CP, 3.65% due 12/01/1997 3,000
5,000 CP, 3.75% due 12/04/1997 5,000
13,817 CP, 3.65% due 12/05/1997 13,817
5,000 CP, 3.75% due 12/05/1997 5,000
6,525 Refunding, 7.875% due 1/01/1998 (c) 6,720
1,900 North Carolina State Port Authority, Docks and Wharves Facility Revenue Bonds
(Morehead City Terminals), VRDN, AMT, 4.25% due 1/01/2016 (a) 1,900
3,400 Person County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Solid Waste Disposal Revenue Bonds (Carolina Power and
Light Company), AMT, DATES, 4.15% due 11/01/2016 (a) 3,400
1,305 Piedmont Triad Airport Authority, North Carolina, Special Facility Revenue
Bonds (Purpose - Cessna Aircraft Company Project), VRDN, AMT, 4.25% due
10/01/2012 (a) 1,305
Raleigh-Durham, North Carolina, Airport Authority, Special Facility Revenue
Refunding Bonds (American Airlines), VRDN (a):
2,750 Series A, 4.05% due 11/01/2005 2,750
300 Series A, 3.90% due 11/01/2015 300
1,400 Series B, 4.05% due 11/01/2015 1,400
6,000 Richland Township, North Carolina, Water and Sewer District, BAN, 3.72%
due 3/04/1998 6,001
5,770 Robeson County, North Carolina, BAN, UT, 3.485% due 10/15/1997 5,770
700 Rowan County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Reynolds Metals Company Project),
3.70% due 12/01/1997 700
3,100 Rutherford County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (All American Homes of North Carolina Inc.),
VRDN, AMT, 4.10% due 11/01/2011 (a) 3,100
4,900 University of North Carolina, Chapel Hill School of Medicine and Ambulatory
Care, Clinic Revenue Bonds, VRDN, 4% due 7/01/2012 (a) 4,900
4,500 Wake County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Carolina Power and Light Company Project),
VRDN, Series C, 4.15% due 10/01/2015 (a) 4,500
1,629 Warren County, North Carolina, Water and Sewer District, BAN, 3.785%
due 5/06/1998 1,629
2,000 Wayne County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Revenue Refunding Bonds (General Signal), VRDN,
4.20% due 12/01/2000 (a) 2,000
600 Wilson County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR (North Carolina Chip Co. Project), VRDN, 4.25% due
1/01/2000 (a) 600
Puerto Rico -- 3,000 Puerto Rico Commonwealth, Government Development Bank, Revenue
5.1% Refunding Bonds, VRDN, 3.70% due 12/01/2015 (a) 3,000
6,000 Puerto Rico Electric Power Authority Revenue Bonds, VRDN, MSTR, Series
SGA-43, 3.90% due 7/01/2022 (a)(b) 6,000
Puerto Rico Industrial, Medical and Environmental Pollution Control Facilities
Financing Authority Revenue Bonds:
1,750 (Abbott Labs Project), 3.75% due 3/01/1998 1,750
2,940 (Dickinson & Co.), 3.76% due 3/01/1998 2,940
----------
Total Investments (Cost -- $257,960*) -- 96.0% 257,960
Other Assets Less Liabilities -- 4.0% 10,655
----------
Net Assets -- 100.0% $268,615
==========
(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, 1997.
(b) MBIA Insured.
(c) Prerefunded.
* Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
Portfolio Abbreviations for CMA North Carolina Municipal Money Fund
<S> <C> <C> <C>
ACESSM Adjustable Convertible Extendable Securities IDA Industrial Development Authority
AMT Alternative Minimum Tax (subject to) IDR Industrial Development Revenue Bonds
BAN Bond Anticipation Notes MSTR Municipal Securities Trust Receipts
COP Certificates of Participation PCR Pollution Control Revenue Bonds
CP Commercial Paper UT Unlimited Tax
DATES Daily Adjustable Tax-Exempt Securities VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
CMA North Carolina Municipal Money Fund
Statement of Assets and Liabilities as of September 30, 1997
<S> <C> <C>
Assets:
Investments, at value (identified cost -- $257,959,560) (Note 1a) $257,959,560
Cash 45,631
Receivables:
Securities sold $12,300,000
Interest 1,485,970 13,785,970
------------
Prepaid registration fees and other assets (Note 1d) 504,647
-------------
Total assets 272,295,808
-------------
Liabilities:
Payables:
Securities purchased 3,416,444
Investment adviser (Note 2) 121,276
Distributor (Note 2) 63,480 3,601,200
------------
Accrued expenses and other liabilities 80,056
-------------
Total liabilities 3,681,256
-------------
Net Assets $268,614,552
=============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares authorized $26,865,436
Paid-in capital in excess of par 241,788,927
Accumulated realized capital losses -- net (Note 4) (39,811)
-------------
Net Assets -- Equivalent to $1.00 per share based on 268,654,363 shares of beneficial
interest outstanding $268,614,552
=============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA North Carolina 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 earned $5,064,269
Expenses:
Investment advisory fees (Note 2) $673,373
Distribution fees (Note 2) 162,961
Transfer agent fees (Note 2) 29,379
Professional fees 26,522
Accounting services (Note 2) 26,274
Registration fees (Note 1d) 15,183
Custodian fees 13,859
Printing and shareholder reports 9,825
Pricing fees 3,872
Trustees' fees and expenses 1,204
Other 1,706
------------
Total expenses 964,158
-------------
Investment income -- net 4,100,111
-------------
Net Increase in Net Assets Resulting from Operations $4,100,111
=============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA North Carolina 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 $4,100,111 $7,440,667
Realized loss on investments -- net -- (3,442)
------------- -------------
Net increase in net assets resulting from operations 4,100,111 7,437,225
------------- -------------
Dividends to Shareholders (Note 1e):
Investment income -- net (4,100,111) (7,440,667)
------------- -------------
Net decrease in net assets resulting from dividends to shareholders (4,100,111) (7,440,667)
------------- -------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 459,956,697 757,440,492
Net asset value of shares issued to shareholders in reinvestment of dividends
(Note 1e) 4,100,149 7,440,785
------------- -------------
464,056,846 764,881,277
Cost of shares redeemed (469,622,360) (764,608,188)
------------- -------------
Net increase (decrease) in net assets derived from beneficial interest transactions (5,565,514) 273,089
------------- -------------
Net Assets:
Total increase (decrease) in net assets (5,565,514) 269,647
Beginning of period 274,180,066 273,910,419
------------- -------------
End of period $268,614,552 $274,180,066
============= =============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA North Carolina Municipal Money Fund
Financial Highlights
For the
Six
Months
The following per share data and ratios have been derived Ended
from information provided in the 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 3.04%* 2.84% 3.12% 2.61% 1.85%
========= ========= ========= ========= =========
Ratios to Average Net Assets:
Expenses, net of reimbursement .72%* .72% .69% .62% .61%
========= ========= ========= ========= =========
Expenses .72%* .72% .74% .72% .71%
========= ========= ========= ========= =========
Investment income -- net 3.04%* 2.79% 3.08% 2.58% 1.84%
========= ========= ========= ========= =========
Supplemental Data:
Net assets, end of period (in thousands) $268,615 $274,180 $273,910 $278,704 $293,452
========= ========= ========= ========= =========
* Annualized.
See Notes to Financial Statements.
</TABLE>
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. 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 $39,000, of which $5,000 expires in 2001, $10,000
expires in 2002, $13,000 expires in 2003 and $11,000 expires in 2005.
This amount will be available to offset like amounts of any future
taxable gains.
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
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].
