CMA
CMA NORTH CAROLINA
MUNICIPAL MONEY FUND
Annual Report
March 31, 1999
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. An
investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other Government agency.
Although the Fund seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the
Fund. 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
Printed on post-consumer recycled paper
TO OUR SHAREHOLDERS:
For the year ended March 31, 1999, CMA North Carolina Municipal
Money Fund paid shareholders a net annualized yield of 2.73%.* As of
March 31, 1999, the Fund's 7-day yield was 2.29%.
Economic Environment
During 1998, North Carolina's economy grew at a healthy pace (4.1%)
for the seventh-consecutive year as inflation-adjusted data
continued to rise. Moreover, economists project continued growth in
1999, although at a slower annual rate of 2.9%. A majority of the
state's economic sectors showed healthy growth during the past year,
led by services with a 10.7% increase, finance and real estate with
7.7% growth, and construction, which rose 4.6%. Consequently, the
North Carolina economy added over 56,900 jobs by year-end, a 1.5%
increase over the December 1997 level. The bulk of this
growth occurred in the service and technology sectors as the state
continued to diversify its economy. Conversely, nondurable goods
manufacturing, which includes textiles, continued its decade-long
employment decline, losing 60,000 jobs since 1990. However, in terms
of personal income, the state should be able to weather the loss of
these jobs because of its growing finance and high-technology
sectors. Personal income growth in North Carolina has outpaced the
national average throughout the decade.
According to state economists, North Carolina's unemployment rate is
expected to stay below 3.5% for 1999, given the expectation that the
US economy will continue to perform well during the year. Most
recently, the seasonally adjusted unemployment rate for February
1999 was 3.1%. Moreover, the state's most recent budget continues to
focus on several areas related to job creation, particularly in the
state's most economically distressed urban and rural areas.
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Specifically, the government is allocating $2 million in grants and
tax credits for companies that locate in these areas. Additionally,
appropriations of $32 million are being made to industrial
development and utility agencies. These agencies furnish funds that
provide infrastructure assistance to companies expanding or locating
in the state's most depressed rural counties. In respect to
increasing North Carolina's global competitiveness, the state will
also designate $5 million to the Industrial Recruitment Competitive
Fund, which is designed to assist local government to bring new
industry to the state.
Finally, the state's housing market did show signs of softening
during the second half of 1998. After having outpaced the national
average since early in the decade, North Carolina's house price
appreciation slowed to mirror the US rate. The main reason for this
was an oversupply of new construction and although the state does
enjoy strong migration trends, household formations are not keeping
up with this supply.
Investment Strategy
During the first half of the six-month period ended March 31, 1999,
we maintained a slightly bullish investment strategy for CMA North
Carolina Municipal Money Fund. The basis for this strategy was
twofold. First, as the period began, a growing number of economic
statistics, which reflected a somewhat weaker domestic economy,
increased the probability that the Federal Reserve Board would have
to ease monetary policy again. Second, we believed that the expected
lack of short-term tax-exempt issuance during this period would
cause yields on fixed-rate securities to outperform those on
variable-rate demand obligations. Furthermore, as the period
progressed, more evidence that problems in world financial markets
and economies were worsening caused the yield on the one-year US
Treasury bill to trade below 4.0% during early October 1998. Thus,
we continued to increase the Fund's percentage of fixed-rate product
when appropriate in order to lock in more attractive yields.
The Federal Reserve Board eased monetary policy by lowering the
Federal Funds rate from 5.25% to 4.75% with two equal moves of 25
basis points (0.25%) early in the period. However, as 1999 began, it
became apparent that previous interest rate cuts had a favorable
effect on the world's financial markets and that the probability of
a full-blown recession was lessening. Moreover, because of an
increasing amount of domestic economic data depicting a robust
economy and subdued inflation, we expected the Federal Reserve Board
to keep monetary policy on hold for the near term. We also believed
that because of traditional cash inflows during January and
February, yields on one-year fixed-rate issues would provide little
value to extending the portfolio's average maturity significantly.
In view of these factors, we limited our purchases of fixed-rate
securities to tax-exempt commercial paper maturing in three months--
four months that provided comparable yields. We maintained this
slightly bullish posture until the end of the period when we began
to increase the Fund's investments in variable-rate demand
obligations in order to seek to take advantage of the expected spike
in yields on these issues from cash outflows during tax time. The
Fund, which began the period with an average portfolio maturity in
the 50-day range, concluded the period in the 35-day range. For the
six-month period ended March 31, 1999, the state of North Carolina's
issuance totaled $111.8 million, an increase from $95 million issued
during the previous six-month period.
In Conclusion
We thank you for your support of CMA North Carolina Municipal Money
Fund, and we look forward to serving your investment needs in the
months and years ahead.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Darrin J. SanFillippo)
Darrin J. SanFillippo
Vice President and Portfolio Manager
May 11, 1999
After more than 20 years of service, Arthur Zeikel recently retired
as Chairman of Merrill Lynch Asset Management, L.P. (MLAM). Mr.
Zeikel served as President of MLAM from 1977 to 1997 and as Chairman
since December 1997. Mr. Zeikel is one of the country's most
respected leaders in asset management and presided over the growth
of Merrill Lynch's asset management business. During his tenure,
client assets under management grew from $300 million to over $500
billion. Mr. Zeikel will remain on CMA North Carolina Municipal
Money Fund's Board of Trustees. We are pleased to announce that
Terry K. Glenn has been elected President and Trustee of the Fund.
Mr. Glenn has held the position of Executive Vice President of MLAM
since 1983.
Mr. Zeikel's colleagues at MLAM join the Fund's Board of Trustees in
wishing him well in his retirement from Merrill Lynch and are
pleased that he will continue as a member of the Fund's Board of
Trustees.
Portfolio Abbreviations for CMA North Carolina Municipal Money Fund
ACES SM Adjustable Convertible Extendable Securities
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
COP Certificates of Participation
CP Commercial Paper
GO General Obligation Bonds
IDR Industrial Development Revenue Bonds
M/F Multi-Family
MSTR Municipal Security Trust Receipts
PCR Pollution Control Revenue Bonds
VRDN Variable Rate Demand Notes
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
North Carolina-- $ 4,000 Ashe County, North Carolina, Industrial Facilities and Pollution Control
95.0% Financing Authority, Industrial Revenue Bonds (Oldham Saw Inc. Project),
VRDN, AMT, 3.10% due 5/01/2014 (a) $ 4,000
1,000 Beaufort County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Texasgulf Inc.), VRDN, 3.10% due
12/01/2000 (a) 1,000
3,600 Brunswick County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR (Wood Industries Inc. Project), VRDN, AMT, 3.25% due
7/01/2017 (a) 3,600
Buncombe County, North Carolina, GO, VRDN (a):
410 3.20% due 6/01/2000 410
455 3.20% due 6/01/2002 455
500 3.20% due 6/01/2004 500
525 3.20% due 6/01/2005 525
580 3.20% due 6/01/2007 580
435 3.20% due 6/01/2008 435
640 3.20% due 6/01/2009 640
740 3.20% due 6/01/2012 740
6,600 Cabarrus County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Industrial Revenue Bonds (S&D Coffee Inc. Project), VRDN,
AMT, 3.10% 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, 3.125% due
10/01/2005 (a) 3,000
2,360 Chadbourn, North Carolina, GO, BAN, 2.89% due 8/18/1999 2,360
4,200 Cleveland County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Industrial Revenue Bonds (Curtiss-Wright Flight System),
VRDN, AMT, 3.10% due 11/01/2023 (a) 4,200
13,300 Clipper, North Carolina, Tax-Exempt Trust, VRDN, 3.11% due 4/12/2004 (a) 13,300
6,500 Davidson County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Industrial Revenue Bonds (Diebold Inc. Project), VRDN,
AMT, 3% due 6/01/2017 (a) 6,500
4,198 Duplin County, North Carolina, Water District, GO, BAN, Series E, 3.10% due
11/17/1999 4,203
3,000 Edgecombe, North Carolina, Water and Sewer District No. 1, GO, BAN, 3.64% due
4/28/1999 3,000
1,780 Gaston County, North Carolina, Industrial Facilities and Pollution Control Financ-
ing Authority, IDR (Gold Medal Homes), VRDN, AMT, 3.10% due 12/01/2009 (a) 1,780
Granville County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Industrial Revenue Bonds, VRDN (a):
4,000 (Mayville Metal Products Project), 3.45% due 5/23/2020 4,000
1,605 (Tuscarora Plastics Inc. Project), AMT, 3.10% due 12/01/2001 1,605
500 Greene County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR (Federal Paper Board Company Inc. Project), VRDN,
3.10% due 11/01/2009 (a) 500
730 Greenville, North Carolina, Utilities Commission, Combined Enterprise System
Revenue Bonds, 3.30% due 9/01/1999 730
</TABLE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
North Carolina Guilford County, North Carolina, Industrial Facilities and Pollution Control
(continued) Financing Authority, IDR, VRDN, AMT (a):
$ 2,000 (Neal Manufacturing), 3.10% due 11/01/2013 $ 2,000
5,000 (Ornamental Products), 3.10% due 12/01/2014 5,000
7,500 (US Woven Label Project), 3.10% due 1/01/2013 7,500
900 Guilford County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Pharmagraphics Inc. Project), VRDN,
AMT, 3.20% due 9/01/2010 (a) 900
18,015 Halifax County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Exempt Facilities Revenue Bonds (Westmoreland), VRDN,
3.10% due 12/01/2019 (a) 18,015
Holly Springs, North Carolina, GO, BAN:
6,617 3.02% due 12/08/1999 6,618
2,000 Series A, 3.04% due 12/08/1999 2,000
2,900 Johnston County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Hamlin Sheet Metal Co. Inc.), VRDN, AMT,
3.10% due 11/01/2017 (a) 2,900
3,700 Lenoir County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds, IDR (West Co. Nebraska Inc. Project),
VRDN, 3.15% due 10/01/2005 (a) 3,700
Lincoln County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR:
7,400 (Hof Textiles Inc. Project), AMT, 3% due 10/01/2011 7,400
3,500 (Packaging NC Project), VRDN, 3.25% due 10/01/2013 (a) 3,500
2,125 Mecklenburg County, North Carolina, GO, Series B, 4.70% due 3/01/2000 2,158
Mecklenburg County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Industrial Revenue Bonds, VRDN (a):
2,000 (Edgecomb Metals Company Project), 3% due 12/01/2009 2,000
1,500 (Griffith Micro Science Project), AMT, 3.05% due 11/01/2007 1,500
8,500 (Rexroth Corporation Project), AMT, 3.10% due 9/01/2016 8,500
5,000 Mecklenburg County, North Carolina, Public Improvements, GO, Series B, 4.25%
due 2/01/2000 5,056
705 New Hanover County, North Carolina, Industrial Facilities Revenue Bonds
(Interroll Corp. Project), VRDN, 3.10% due 11/01/2003 (a) 705
1,100 North Carolina Agricultural Finance Authority, Agricultural Development Rev-
enue Bonds (Citterio USA Corp. Project), VRDN, AMT, 3.10% due 3/01/2013 (a) 1,100
16,500 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds,
CP, 2.85% due 4/06/1999 16,500
8,000 North Carolina Eastern Municipal Power Agency, Power System Revenue
Refunding Bonds, Series A, 4.25% due 1/01/2000 (d) 8,074
North Carolina Educational Facilities Finance Agency Revenue Bonds, VRDN (a):
2,000 (Catawba College), 3% due 3/01/2019 2,000
3,700 (Duke University Project), Series A, 2.95% due 12/01/2017 3,700
2,000 (Duke University Project), Series A, 2.95% due 6/01/2027 2,000
1,900 North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds
(Cabarrus Memorial Hospital Project), VRDN, 3% due 3/01/2012 (a) 1,900
North Carolina Medical Care Commission, Hospital Revenue Bonds, ACES,
VRDN (a):
3,100 (Pooled Equipment Financing Project), 2.95% due 12/01/2025 (b) 3,100
3,300 (Pooled Financing Project), 3% due 4/01/2012 3,300
500 (Pooled Financing Project), Series A, 3.15% due 10/01/2020 500
North Carolina Medical Care Commission, Hospital Revenue Bonds, VRDN (a):
3,500 (Duke University Hospital Project), Series C, 2.95% due 6/01/2015 3,500
2,130 (Duke University Hospital Project), Series D, 2.95% due 6/01/2015 2,130
200 (Moses H. Cone Memorial Hospital Project), 3.10% due 10/01/2023 200
</TABLE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
North Carolina $ 8,000 North Carolina Medical Care Commission, Hospital Revenue Refunding Bonds
(concluded) (Lexington Memorial Hospital Project), VRDN, 2.95% due 4/01/2010 (a) $ 8,000
3,000 North Carolina Medical Care Commission Revenue Bonds (Lutheran
Retirement Project), VRDN, 3% due 1/01/2019 (a) 3,000
North Carolina Municipal Power Agency No. 1 (Catawba Electric), CP:
15,000 2.90% due 4/01/1999 15,000
20,650 2.90% due 4/06/1999 20,650
4,000 2.90% due 4/12/1999 4,000
1,700 North Carolina State Ports Authority, Docks and Wharves Facility Revenue
Bonds (Morehead City Terminals), VRDN, 3.10% due 1/01/2016 (a) 1,700
1,210 Piedmont Triad Airport Authority, North Carolina, Special Facility Revenue
Bonds (Purpose-Cessna Aircraft Company Project), VRDN, 3.10% due
10/01/2012 (a) 1,210
Raleigh Durham, North Carolina, Airport Authority, Special Facility Revenue
Refunding Bonds (American Airlines), VRDN (a):
1,400 Series A, 2.90% due 11/01/2005 1,400
3,200 Series A, 2.90% due 11/01/2015 3,200
200 Series B, 3.20% due 11/01/2015 200
6,095 Raleigh, North Carolina, Parking Facility Lease, COP (RPDA Project), 6.75% due
1/01/2000 (c) 6,381
2,300 Rowan County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, PCR, IDR (Hon Industries Project), VRDN, AMT, 3.10% due
4/01/2018 (a) 2,300
2,800 Rutherford County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR (All American Homes of North Carolina), VRDN, AMT,
3.20% due 11/01/2011 (a) 2,800
3,330 Sampson County, North Carolina, Water and Sewer District II, GO, BAN, 3.535%
due 6/02/1999 3,330
5,000 Stanley County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR (Patrick Industries Project), VRDN, AMT, 3.20% due
8/01/2010 (a) 5,000
10,000 Wake County, North Carolina, Industrial Facilities and Pollution Control Financ-
ing Authority (Carolina P&L Co. Project), CP, Series B, 3.05% due 4/07/1999 10,000
3,000 Wake County, North Carolina, Industrial Facilities and Pollution Control Financ-
ing Authority, IDR (Accu-Fab Inc. Project), VRDN, AMT, 3.20% due 1/01/2019 (a) 3,000
4,000 Wake County, North Carolina, M/F Housing Authority Revenue Bonds
(Chandler Ridge Apartments Project), VRDN, 3.15% due 12/01/2038 (a) 4,000
300 Wilson County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR (North Carolina Chip Co. Project), VRDN, 3.10% due
1/01/2000 (a) 300
1,200 Winston Salem, North Carolina, GO, Refunding, 6.50% due 6/01/1999 1,206
Puerto Rico-- 6,400 Puerto Rico Commonwealth, Government Development Bank, Revenue
4.5% Refunding Bonds, VRDN, 2.75% due 12/01/2015 (a)(b) 6,400
2,500 Puerto Rico Commonwealth, Highway and Transportation Authority, Transporta-
tion Revenue Refunding Bonds, VRDN, Series A, 2.65% due 7/01/2028 (a)(d) 2,500
5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, GO, MSTR, VRDN,
Series SGA-43, 2.75% due 7/01/2022 (a) 5,000
Total Investments (Cost--$302,696*)--99.5% 302,696
Other Assets Less Liabilities--0.5% 1,370
----------
Net Assets--100.0% $ 304,066
==========
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the rate in effect at
March 31, 1999.
(b)MBIA Insured.
(c)Prerefunded.
(d)AMBAC Insured.
*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 MARCH 31, 1999
<S> <C> <C>
Assets:
Investments, at value (identified cost--$302,696,212) (Note 1a) $ 302,696,212
Cash 164,480
Receivables:
Interest $ 1,478,126
Securities sold 4,959 1,483,085
---------------
Prepaid registration fees and other assets (Note 1d) 4,626
---------------
Total assets 304,348,403
---------------
Liabilities:
Payables:
Investment adviser (Note 2) 134,528
Distributor (Note 2) 91,249 225,777
---------------
Accrued expenses and other liabilities 56,369
---------------
Total liabilities 282,146
---------------
Net Assets $ 304,066,257
===============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 30,413,216
Paid-in capital in excess of par 273,718,947
Accumulated realized capital losses--net (Note 4) (65,906)
---------------
Net Assets--Equivalent to $1.00 per share based on 304,132,164 shares of
beneficial interest outstanding $ 304,066,257
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1999
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium earned $ 9,718,043
Expenses:
Investment advisory fees (Note 2) $ 1,425,986
Distribution fees (Note 2) 355,105
Professional fees 56,715
Transfer agent fees (Note 2) 54,900
Accounting services (Note 2) 51,784
Registration fees (Note 1d) 34,265
Custodian fees 27,014
Printing and shareholder reports 18,811
Pricing fees 7,304
Trustees' fees and expenses 2,081
Other 5,136
---------------
Total expenses 2,039,101
---------------
Investment income--net 7,678,942
Realized Loss on Investments--Net (Note 1c) (26,651)
---------------
Net Increase in Net Assets Resulting from Operations $ 7,652,291
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 1999 1998
<S> <C> <C>
Operations:
Investment income--net $ 7,678,942 $ 8,203,913
Realized gain (loss) on investments--net (26,651) 556
--------------- ---------------
Net increase in net assets resulting from operations 7,652,291 8,204,469
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (7,678,942) (8,203,913)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (7,678,942) (8,203,913)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 779,318,396 908,145,767
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 7,678,935 8,204,020
--------------- ---------------
786,997,331 916,349,787
Cost of shares redeemed (789,973,877) (883,460,955)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial interest
transactions (2,976,546) 32,888,832
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets (3,003,197) 32,889,388
Beginning of year 307,069,454 274,180,066
--------------- ---------------
End of year $ 304,066,257 $ 307,069,454
=============== ===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements.
For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Investment income--net .03 .03 .03 .03 .03
Realized gain (loss) on investments--net --++ --++ --++ --++ --++
--------- --------- --------- --------- ---------
Total from investment operations .03 .03 .03 .03 .03
--------- --------- --------- --------- ---------
Less dividends from investment income--net (.03) (.03) (.03) (.03) (.03)
--------- --------- --------- --------- ---------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Investment Return 2.73% 3.02% 2.84% 3.12% 2.61%
========= ========= ========= ========= =========
Ratios to Average Net Assets:
Expenses, net of reimbursement .71% .71% .72% .69% .62%
========= ========= ========= ========= =========
Expenses .71% .71% .72% .74% .72%
========= ========= ========= ========= =========
Investment income--net 2.69% 2.97% 2.79% 3.08% 2.58%
========= ========= ========= ========= =========
Supplemental Data:
Net assets, end of year (in thousands) $ 304,066 $ 307,069 $ 274,180 $ 273,910 $ 278,704
========= ========= ========= ========= =========
<FN>
++Amount is less than $.01 per share.
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. The Fund's
financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of
management accruals and estimates. 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.
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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 Incorporated ("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.
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, PSI, 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, 1999, the Fund had a net capital loss carryforward of
approximately $66,000, of which $5,000 expires in 2001, $10,000
expires in 2002, $13,000 expires in 2003, $11,000 expires in 2005
and $27,000 expires in 2007. This amount will be available to
offset like amounts of any future taxable gains.
<AUDIT-REPORT>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
CMA North Carolina Municipal Money Fund
of CMA Multi-State Municipal Series Trust:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of CMA North
Carolina Municipal Money Fund of CMA Multi-State Municipal Series
Trust as of March 31, 1999, the related statements of operations for
the year then ended and changes in net assets for each of the years
in the two-year period then ended, and the financial highlights for
each of the years in the five-year period then ended. These
financial statements and the financial highlights are the
responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and the financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at March
31, 1999 by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
CMA North Carolina Municipal Money Fund of CMA Multi-State Municipal
Series Trust as of March 31, 1999, the results of its operations,
the changes in its net assets, and the financial highlights for the
respective stated periods in conformity with generally accepted
accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
May 12, 1999
</AUDIT-REPORT>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid daily by CMA
North Carolina Municipal Money Fund of CMA Multi-State Municipal
Series Trust during its taxable year ended March 31, 1999 qualify as
tax-exempt interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed by the Fund
during the taxable year ended March 31, 1999.
Please retain this information for your records.
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
OFFICERS AND TRUSTEES
Terry K. Glenn--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Arthur Zeikel--Trustee
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--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
Donald C. Burke--Vice President and
Treasurer
Robert Harris--Secretary
Gerald M. Richard, Treasurer of CMA North Carolina Municipal Money
Fund has recently retired. His colleagues at Merrill Lynch Asset
Management, L.P. join the Fund's Board of Trustees in wishing Mr.
Richard well in his retirement.
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
