CMA North Carolina
Municipal Money Fund
Semi-Annual Report
September 30, 2000
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. 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. Past performance results shown in this report should not be
considered a representation of future performance, which will
fluctuate. 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 six-month period ended September 30, 2000, CMA North
Carolina Municipal Money Fund paid shareholders a net annualized
yield of 3.60%.* As of September 30, 2000, the Fund's 7-day yield
was 3.96%.
Economic Environment
The state of North Carolina's economy continued to create jobs at a
steady pace during the six-month period ended September 30, 2000.
Excluding the struggling manufacturing industry, which lost 10,000
jobs over the first six months of the year, job growth was up over
3%. Moreover, the jobless rate is holding steady, aided by the
acceleration of the non-manufacturing sector of the economy and
slowing labor force growth. In North Carolina, high-paying job
opportunities in software development, communications and financial
services are expected to remain abundant, fueling high levels of
immigration and continuing to support the state's retail and
construction industries. For instance, last year more than 61,000
net migrants poured into North Carolina, raising the population by
1.4% and making it one of the fastest-growing states in the United
States. Consequently, North Carolina's technology industry is
becoming more diversified with respect to its industrial composition
and geographical dispersion. In terms of composition, the state has
attracted some of the largest makers of Internet and telecom
networking equipment as well as some of the largest Internet
providers and software developers. In terms of geographical
dispersion, a majority of the high-tech industry that was previously
concentrated in the Raleigh area is now spreading to other parts of
the state. In fact, in the first quarter of this year 41% of the
venture capital that poured into North Carolina went to Charlotte
firms whereas Charlotte firms previously accounted for less than one
quarter of the state's total. Presently, larger employers that are
expanding to this part of the state include Electric Data Systems,
International Business Machines Corp. and Corning Inc.
North Carolina's housing market remains extremely healthy, although
growth is slowing from last year's pace. For example, after five
consecutive years of record activity, housing permits are showing
some weakness and house price growth has slowed considerably. The
primary factors contributing to this weakness were higher interest
rates and years of furious building activity. Nevertheless, North
Carolina's economy continues to be strong, and the state's household
growth is still well above the national average. As a result, North
Carolina's housing market is expected to remain healthy in the near
future, despite slightly weaker activity than last year.
Investment Strategy
CMA North Carolina Municipal Money Fund began the six-month period
ended September 30, 2000 with a relatively bearish position. This
was because variable rate demand products traditionally outperform
fixed rate products in April and May as a result of outflows during
tax time. Nonetheless, we anticipated moving the Fund to a more
neutral stance by June, given our opinion that tighter monetary
policy, which was causing US equity markets to weaken, would soon
have a negative impact on the domestic economy. It was also the case
that the lack of short-term tax-exempt issuance and traditional cash
inflows in early June and July caused variable rate products to
underperform fixed rate products. Conversely, as the period began a
number of economic indicators, including strong retail sales and
housing activity, reflected a still-healthy US economy, while the
nation's unemployment rate dropped to 3.9% in April. Thus, we
delayed the Fund's extension in response to these factors.
On May 16, 2000, the Federal Reserve Board tightened monetary policy
by increasing the Federal Funds rate 50 basis points (0.50%) from
6.00% to 6.50%. Given this significant tightening of monetary
policy, we then looked to move to the more neutral stance we
anticipated at the beginning of the period. For the six-month period
ended September 30, 2000, the state of North Carolina's issuance
totaled $22.0 million. As we entered the second half of the period,
an increasing portion of the economic data began to reflect a
domestic economy that was softening. For example, in both July and
August the change in non-farm payrolls was significantly weaker than
expected, decreasing 108,000 and increasing only 53,000,
respectively. The battered equity indexes also had trouble
rebounding from their lows as the Dow Jones Industrial Average fell
over 5%, while the NASDAQ Composite Index lost almost 15% of its
value. Inflation also stayed in check as both the consumer and
producer price indexes recorded negative values during the month of
August. Given this backdrop for the domestic economy, we believed
that a moderate slowdown could be at hand. Thus, during the
remainder of the period we continued to move to a slightly more
aggressive position when prudent. We accomplished this primarily in
July and August when the traditional increase in fixed rate issuance
provided an opportunity to lock in attractive yields. This strategy
allowed the Fund to perform above average relative to its peer group
during the period, as measured by IBC's Money Fund Report.
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
October 25, 2000
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
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
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
VRDN Variable Rate Demand Notes
<TABLE>
CMA North Carolina Municipal Money Fund
Schedule of Investments as of September 30, 2000 (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
North Carolina-- $ 3,700 Ashe County, North Carolina, Industrial Facilities and Pollution Control
95.2% Financing Authority, Industrial Revenue Bonds (Oldham Saw Inc. Project),
VRDN, AMT, 5.70% due 5/01/2014 (a) $ 3,700
1,000 Beaufort County, North Carolina, Industrial Facilities and Pollution
Control Financing Authority Revenue Bonds (Texasgulf, Inc. Project), VRDN,
5.60% due 12/01/2005 (a) 1,000
Buncombe County, North Carolina, GO, VRDN (a):
455 5.30% due 6/01/2002 455
500 5.30% due 6/01/2004 500
525 5.30% due 6/01/2005 525
580 5.30% due 6/01/2007 580
435 5.30% due 6/01/2008 435
640 5.30% due 6/01/2009 640
740 5.30% due 6/01/2012 740
3,000 Buncombe County, North Carolina, Industrial Facilities and Pollution
Control Financing Authority, Revenue Refunding Bonds (Industrial
Development Alliance), VRDN, AMT, 5.65% due 8/01/2009 (a) 3,000
6,600 Cabarrus County, North Carolina, Industrial Facilities and Pollution
Control Financing Authority, Industrial Revenue Bonds (S&D Coffee Inc.
Project), VRDN, AMT, 5.65% 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, 5.625%
due 10/01/2005 (a) 3,000
Chapel Hill, North Carolina, Parking Facility Revenue Refunding Bonds
(Rosemary Strong Project) (c):
2,310 8.125% due 12/01/2000 2,371
4,305 8.25% due 12/01/2000 4,410
1,300 Charlotte, North Carolina, GO, 5.50% due 6/01/2001 1,309
3,000 Charlotte, North Carolina, GO, Refunding, 5% due 2/01/2001 3,009
4,200 Cleveland County, North Carolina, Industrial Facilities and Pollution
Control Financing Authority, Industrial Revenue Bonds (Curtiss-Wright
Flight System), VRDN, AMT, 5.65% due 11/01/2023 (a) 4,200
6,500 Columbus County, North Carolina, Water and Sewer District Number 2, GO,
BAN, 4.40% due 3/28/2001 6,503
6,500 Davidson County, North Carolina, Industrial Facilities and Pollution
Control Financing Authority, Industrial Revenue Bonds (Diebold Inc.
Project), VRDN, AMT, 5.60% due 6/01/2017 (a) 6,500
735 Eden, North Carolina, Water and Sewer, GO, Refunding, AMT, 5% due
6/01/2001 (e) 736
11,505 Forsyth County, North Carolina, COP (Public Facilities and Equipment
Project), VRDN, 4.20% due 10/01/2020 (a) 11,505
1,550 Gaston County, North Carolina, Industrial Facilities and Pollution
Control Financing Authority, IDR (Gold Medal Homes), VRDN, AMT, 5.55% due
12/01/2009 (a) 1,550
10,000 Gaston County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR, Refunding (Duke Energy Corp.), VRDN, AMT, 4.25%
due 10/01/2012 (a) 10,000
</TABLE>
<TABLE>
CMA North Carolina Municipal Money Fund
Schedule of Investments as of September 30, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
North Carolina Granville County, North Carolina, Industrial Facilities and Pollution Control
(continued) Financing Authority, Industrial Revenue Bonds, VRDN (a):
$ 4,000 (Mayville Metal Products Project), 4.55% due 5/23/2020 $ 4,000
1,280 (Tuscarora Plastics, Inc. Project), AMT, 5.70% due 12/01/2001 1,280
500 Greene County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Industrial Revenue Bonds (Federal Paper Board
Company, Inc. Project), VRDN, 5.65% due 11/01/2009 (a) 500
Guilford County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR, VRDN, AMT (a):
1,800 (Neal Manufacturing), 5.70% due 11/01/2013 1,800
2,500 (Ornamental Products), 5.70% due 12/01/2014 2,500
800 (Pharmagraphics Inc. Project), 5.75% due 9/01/2010 800
2,800 (Snider Tire Inc.), 5.70% due 10/01/2019 2,800
4,500 (US Woven Label Project), 5.65% due 1/01/2013 4,500
23,000 Halifax County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds, Exempt Facilities (Westmoreland),
VRDN, 5.60% due 12/01/2019 (a) 23,000
1,735 Harnett County, North Carolina, COP, 5.90% due 12/01/2000 (d) 1,740
2,800 Johnston County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Hamlin Sheet Metal Co. Inc.), VRDN, AMT,
5.70% due 11/01/2017 (a) 2,800
3,700 Lenoir County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR (West Co. Nebraska, Inc. Project), VRDN, 5.70% due
10/01/2005 (a) 3,700
Lincoln County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR, VRDN (a):
6,600 (Hof Textiles Inc. Project), AMT, 5.60% due 10/01/2011 6,600
3,380 (Packaging NC Project), 5.60% due 10/01/2013 3,380
6,250 Mecklenburg County, North Carolina, COP, VRDN, 5.70% due 4/01/2020 (a) 6,250
5,000 Mecklenburg County, North Carolina, GO (Public Improvement), VRDN,
Series C, 5.45% due 2/01/2011 (a) 5,000
Mecklenburg County, North Carolina, Industrial Facilities and Pollution
Control Financing Authority, Industrial Revenue Bonds, VRDN (a):
2,000 (Edgcomb Metals Co. Project), 5.60% due 12/01/2009 2,000
1,000 (Ferguson Supply and Box Manufacturing), AMT, 4.50% due 8/01/2010 1,000
1,500 (Griffith Micro Science Project), AMT, 5.60% due 11/01/2007 1,500
8,500 (Rexroth Corp. Project), AMT, 5.65% due 9/01/2016 8,500
605 New Hanover County, North Carolina, Industrial Facilities Revenue Bonds
(Interroll Corp. Project), VRDN, 5.70% due 11/01/2003 (a) 605
1,000 North Carolina Agricultural Finance Authority, Agricultural Development
Revenue Bonds (Citterio USA Corp. Project), VRDN, AMT, 5.70% due
3/01/2013 (a) 1,000
North Carolina Educational Facilities Finance Agency, Educational Facilities
Revenue Bonds, VRDN (a):
965 (Catawba College), 5.55% due 3/01/2019 965
10,000 (Duke University Project), Series A, 5.45% due 12/01/2017 10,000
North Carolina Educational Facilities Finance Agency, Educational
Facilities Revenue Refunding Bonds, VRDN (a):
5,550 (Cardinal Gibbons High School), 5.70% due 8/01/2014 5,550
10,000 (Wake Forest University), 3.80% due 1/01/2018 10,000
North Carolina Medical Care Commission, Health Care Facilities Revenue
Bonds (Cabarrus Memorial Hospital Project), VRDN (a):
1,805 5.55% due 3/01/2012 1,805
2,735 AMT, 5.50% due 3/01/2028 2,735
</TABLE>
<TABLE>
CMA North Carolina Municipal Money Fund
Schedule of Investments as of September 30, 2000 (concluded) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
North Carolina North Carolina Medical Care Commission, Hospital Revenue Bonds (a):
(concluded) $ 200 (Moses H. Cone Memorial Hospital Project), VRDN, 5.50% due 10/01/2023 $ 200
3,100 (Pooled Equipment Financing Project), ACES, 4.95% due 12/01/2025 (b) 3,100
2,000 (Pooled Financing Project), VRDN, Series A, 5.50% due 10/01/2016 2,000
North Carolina Medical Care Commission, Hospital Revenue Refunding Bonds:
18,800 (Baptist Hospitals Project), VRDN, 5.55% due 6/01/2030 (a) 18,800
1,000 (Presbyterian Hospital Project), 7.30% due 10/01/2000 (c) 1,020
3,850 (Presbyterian Hospital Project), 7.375% due 10/01/2000 (c) 3,928
1,800 North Carolina State, GO, Capital Improvement, Series A, 4.70% due 2/01/2001 1,803
6,000 North Carolina State, GO, Public Improvment, Series A, 5% due 3/01/2001 6,021
5,000 North Carolina State, GO, Series A, 4.75% due 4/01/2001 5,010
1,600 North Carolina State Ports Authority, Docks and Wharves Facility Revenue
Bonds (Morehead City Terminals), VRDN, 5.70% due 1/01/2016 (a) 1,600
4,500 North Carolina State University-Raleigh, North Carolina, Revenue Bonds
(Centennial Campus), VRDN, Series A, 5.45% due 12/15/2019 (a)(e) 4,500
1,210 Piedmont Triad Airport Authority, North Carolina, Special Facility Revenue
Bonds (Cessna Aircraft Company Project), VRDN, 5.70% due 10/01/2012 (a) 1,210
9,000 Raleigh Durham, North Carolina, Airport Authority, Special Facility Revenue
Refunding Bonds (American Airlines Inc.), VRDN, Series A, 5.55% due
11/01/2015 (a) 9,000
1,194 Riverside County, North Carolina, GO, BAN, 4.50% due 4/25/2001 1,195
2,300 Rowan County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, PCR, IDR (Hon Industries Project), VRDN, AMT, 5.65% due
4/01/2018 (a) 2,300
825 Rowland, North Carolina, GO, BAN, 4.80% due 1/10/2001 825
2,600 Rutherford County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR (All American Homes of North Carolina), VRDN, AMT,
5.75% due 11/01/2011 (a) 2,600
4,200 Stanley County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR (Patrick Industries Project), VRDN, AMT, 5.75% due
8/01/2010 (a) 4,200
4,200 Stanley County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Gentry Mills Project), VRDN, 5.65% due
2/01/2009 (a) 4,200
860 Stedman, North Carolina, GO, BAN, 4.75% due 12/13/2000 861
3,700 Vance County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR (HH Hunt Manufacturing Facilities LLC Project), VRDN,
5.60% due 6/01/2015 (a) 3,700
2,850 Wake County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR (Accu-Fab Inc. Project), VRDN, AMT, 5.65% due
1/01/2019 (a) 2,850
1,455 Walnut Cove, North Carolina, GO, BAN, 4.65% due 3/07/2001 1,456
Puerto Rico--4.3% 8,200 Puerto Rico Electric Power Authority, Power Revenue Bonds, GO, MSTR, VRDN,
Series SGA-43, 4.90% due 7/01/2022 (a) 8,200
4,000 Puerto Rico Government Development Bank, CP, 4% due 1/26/2001 4,000
Total Investments (Cost--$284,157*)--99.5% 284,157
Other Assets Less Liabilities--0.5% 1,507
----------
Net Assets--100.0% $ 285,664
==========
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at September 30, 2000.
(b)MBIA Insured.
(c)Prerefunded.
(d)AMBAC Insured.
(e)FSA 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 September 30, 2000
<S> <C> <C>
Assets:
Investments, at value (identified cost--$284,156,563) $ 284,156,563
Cash 35,184
Interest receivable 1,711,769
Prepaid registration fees and other assets 65,210
--------------
Total assets 285,968,726
--------------
Liabilities:
Payables:
Investment adviser $ 112,996
Distributor 72,057
Dividends to shareholders 126 185,179
--------------
Accrued expenses and other liabilities 119,305
--------------
Total liabilities 304,484
--------------
Net Assets $ 285,664,242
==============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $ 28,573,070
Paid-in capital in excess of par 257,157,625
Accumulated realized capital losses--net (66,453)
--------------
Net Assets--Equivalent to $1.00 per share based on 285,730,695 shares of
beneficial interest outstanding $ 285,664,242
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA North Carolina Municipal Money Fund
Statement of Operations for the Six Months Ended September 30, 2000
<S> <C> <C>
Investment Income:
Interest and amortization of premium earned $ 5,971,079
Expenses:
Investment advisory fees $ 690,761
Distribution fees 171,675
Accounting services 34,974
Professional fees 23,221
Transfer agent fees 21,884
Custodian fees 12,682
Registration fees 10,622
Printing and shareholder reports 9,258
Pricing fees 3,605
Trustees' fees and expenses 789
Other 4,067
--------------
Total expenses 983,538
--------------
Investment income--net 4,987,541
--------------
Net Increase in Net Assets Resulting from Operations $ 4,987,541
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA North Carolina Municipal Money Fund
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, March 31,
Increase (Decrease) in Net Assets: 2000 2000
<S> <C> <C>
Operations:
Investment income--net $ 4,987,541 $ 7,998,529
Realized loss on investments--net -- (547)
-------------- --------------
Net increase in net assets resulting from operations 4,987,541 7,997,982
-------------- --------------
Dividends to Shareholders:
Dividends to shareholders from investment income--net (4,987,541) (7,998,529)
-------------- --------------
Beneficial Interest Transactions:
Net proceeds from sale of shares 442,243,197 836,020,671
Value of shares issued to shareholders in reinvestment of dividends 4,987,492 7,998,408
-------------- --------------
447,230,689 844,019,079
Cost of shares redeemed (453,102,139) (856,549,097)
-------------- --------------
Net decrease in net assets derived from beneficial interest transactions (5,871,450) (12,530,018)
-------------- --------------
Net Assets:
Total decrease in net assets (5,871,450) (12,530,565)
Beginning of period 291,535,692 304,066,257
-------------- --------------
End of period $ 285,664,242 $ 291,535,692
============== ==============
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 For the Six
from information provided in the financial statements. Months Ended
September 30, For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: 2000 2000 1999 1998 1997
<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 .03
Realized gain (loss) on investments--net -- --++ --++ --++ --++
--------- --------- --------- --------- ---------
Total from investment operations .02 .03 .03 .03 .03
--------- --------- --------- --------- ---------
Less dividends from investment income--net (.02) (.03) (.03) (.03) (.03)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Investment Return 3.60%* 2.76% 2.73% 3.02% 2.84%
========= ========= ========= ========= =========
Ratios to Average Net Assets:
Expenses .71%* .71% .71% .71% .72%
========= ========= ========= ========= =========
Investment income--net 3.60%* 2.72% 2.69% 2.97% 2.79%
========= ========= ========= ========= =========
Supplemental Data:
Net assets, end of period (in thousands) $ 285,664 $ 291,536 $ 304,066 $ 307,069 $ 274,180
========= ========= ========= ========= =========
*Annualized.
++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 conformity with accounting
principles generally accepted in the United States of America, which
may require the use of management accruals and estimates. 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 backup 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: .50%
of the first $500 million of average daily net assets; .425% of
average daily net assets in excess of $500 million but not exceeding
$1 billion; and .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 .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 sold, reinvested and redeemed during the
periods corresponds to the amounts included in the Statements of
Changes in Net Assets for net proceeds from sale of shares, value of
shares reinvested and cost of shares redeemed, respectively, since
shares are recorded at $1.00 per share.
4. Capital Loss Carryforward:
At March 31, 2000, 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.
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
Roscoe S. Suddarth--Trustee
Richard R. West--Trustee
Arthur Zeikel--Trustee
Edward D. Zinbarg--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
Phillip Gillespie--Secretary
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*
*For inquiries regarding your CMA account, call (800) CMA-INFO
[(800) 262-4636].
