N-Q 1 nq1.htm NRB Form N-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q


QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number         811-09461         

        Nuveen North Carolina Dividend Advantage Municipal Fund         
(Exact name of registrant as specified in charter)

Nuveen Investments
        333 West Wacker Drive, Chicago, Illinois 60606         
(Address of principal executive offices) (Zip code)


Jessica R. Droeger—Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)

Registrant's telephone number, including area code:         312-917-7700        

Date of fiscal year end:            5/31          

Date of reporting period:         2/28/07         

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Schedule of Investments

    Portfolio of Investments (Unaudited)             
    Nuveen North Carolina Dividend Advantage Municipal Fund (NRB)             
    February 28, 2007             
Principal        Optional Call         
Amount (000)    Description (1)    Provisions (2)    Ratings (3)    Value 
    Education and Civic Organizations – 19.0% (11.6% of Total Investments)             
$             380    North Carolina Capital Facilities Financing Agency, Revenue Bonds, Duke University, Series    10/11 at 100.00    AA+   $   397,271 
     2001A, 5.125%, 10/01/26             
500    North Carolina Capital Facilities Financing Agency, Revenue Bonds, High Point University,    9/11 at 101.00    Baa2    524,640 
     Series 2001, 5.125%, 9/01/18             
1,430    University of North Carolina System, Pooled Revenue Refunding Bonds, Series 2002A, 5.375%,    10/12 at 100.00    AAA    1,539,467 
     4/01/17 – AMBAC Insured             
250    University of North Carolina Wilmington, Certificates of Participation, Student Housing    6/16 at 100.00    AAA    266,480 
     Project Revenue Bonds, Series 2006, 5.000%, 6/01/37 – FGIC Insured             
1,750    University of North Carolina, Chapel Hill, System Net Revenue Bonds, Series 2001A,    6/11 at 100.00    AA+    1,824,060 
     5.000%, 12/01/25             
1,845    University of North Carolina, Chapel Hill, System Net Revenue Bonds, Series 2002B,    No Opt. Call    AA+    1,954,040 
     5.000%, 12/01/11             
6,155    Total Education and Civic Organizations            6,505,958 
    Health Care – 19.5% (11.9% of Total Investments)             
100    Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds, DBA    1/15 at 100.00    AA    104,666 
     Carolinas Healthcare System, Series 2005A, 5.000%, 1/15/45             
250    North Carolina Medical Care Commission, Health System Revenue Bonds, Mission St. Joseph’s    10/17 at 100.00    AA    251,985 
     Health System, Series 2007, 4.500%, 10/01/31             
1,110    North Carolina Medical Care Commission, Healthcare Facilities Revenue Bonds, Union Regional    1/12 at 100.00    A    1,166,222 
     Medical Center, Series 2002A, 5.250%, 1/01/15             
2,500    North Carolina Medical Care Commission, Healthcare Revenue Bonds, Carolina Medicorp, Series    5/07 at 100.00    AA–    2,505,225 
     1996, 5.250%, 5/01/26             
1,500    North Carolina Medical Care Commission, Hospital Revenue Bonds, Southeastern Regional Medical    6/12 at 101.00    A    1,579,050 
     Center, Series 2002, 5.250%, 6/01/22             
300    North Carolina Medical Care Commission, Revenue Bonds, Blue Ridge Healthcare System, Series    1/15 at 100.00    AAA    317,832 
     2005, 5.000%, 1/01/33 – FGIC Insured             
300    North Carolina Medical Care Commission, Revenue Bonds, Northeast Medical Center, Series 2004,    11/14 at 100.00    AA    316,698 
     5.000%, 11/01/24             
150    North Carolina Medical Care Commission, Revenue Bonds, Pines at Davidson, Series 2006A,    1/16 at 100.00    N/R    156,636 
     5.000%, 1/01/36             
255    Onslow County Hospital Authority, North Carolina, FHA Insured Mortgage Revenue Bonds, Onslow    10/16 at 100.00    AAA    271,685 
     Memorial Hospital Project, Series 2006, 5.000%, 4/01/31 – MBIA Insured             
6,465    Total Health Care            6,669,999 
    Housing/Multifamily – 6.7% (4.1% of Total Investments)             
2,225    Durham Housing Authority, North Carolina, FNMA Guaranteed Multifamily Housing Revenue Bonds,    6/11 at 100.00    AAA    2,301,028 
     Naples Terrace Apartments, Series 2001A, 5.700%, 6/01/33 (Alternative Minimum Tax)             
    Housing/Single Family – 5.1% (3.1% of Total Investments)             
440    North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, 1998 Trust Agreement,    7/10 at 100.00    AAA    451,185 
     Series 10A, 5.400%, 7/01/32 – AMBAC Insured (Alternative Minimum Tax)             
935    North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, 1998 Trust Agreement,    7/09 at 100.00    AA    950,830 
     Series 5A, 5.625%, 7/01/30 (Alternative Minimum Tax)             
330    North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, Series 25-A, 4.900%,    7/16 at 100.00    AA    336,699 
     7/01/37 (Alternative Minimum Tax)             
1,705    Total Housing/Single Family            1,738,714 
    Industrials – 1.5% (0.9% of Total Investments)             
500    North Carolina Capital Facilities Financing Agency, Exempt Facilities Revenue Bonds, Waste    No Opt. Call    BBB    498,980 
     Management Inc., Series 2001, 3.750%, 8/01/14 (Mandatory put 8/01/07) (Alternative Minimum Tax)             
    Long-Term Care – 2.3% (1.4% of Total Investments)             
300    North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, Presbyterian    10/16 at 100.00    N/R    310,899 
     Homes, Series 2006B, 5.200%, 10/01/21             
200    North Carolina Medical Care Commission, Healthcare Facilities Revenue Bonds, Presbyterian    10/16 at 100.00    N/R    208,504 
     Homes, Series 2006, 5.400%, 10/01/27             
250    North Carolina Medical Care Commission, Revenue Bonds, United Church Homes and Services,    9/15 at 100.00    N/R    259,285 
     Series 2005A, 5.250%, 9/01/21             
750    Total Long-Term Care            778,688 
    Materials – 3.9% (2.4% of Total Investments)             
750    Columbus County Industrial Facilities and Pollution Control Financing Authority, North    4/07 at 102.00    BBB    766,080 
     Carolina, Environmental Improvement Revenue Bonds, International Paper Company Project,             
     Series 1997A, 6.150%, 4/01/21 (Alternative Minimum Tax)             
515    Gaston County Industrial Facilities and Pollution Control Financing Authority, North Carolina,    8/15 at 100.00    N/R    555,927 
     National Gypsum Company Project Exempt Facilities Revenue Bonds, Series 2005, 5.750%, 8/01/35             
     (Alternative Minimum Tax)             
1,265    Total Materials            1,322,007 
    Tax Obligation/General – 6.3% (3.9% of Total Investments)             
    North Carolina, General Obligation Bonds, Series 2004A:             
1,000     5.000%, 3/01/18    3/14 at 100.00    AAA    1,079,160 
1,000     5.000%, 3/01/22    3/14 at 100.00    AAA    1,075,450 
2,000    Total Tax Obligation/General            2,154,610 
    Tax Obligation/Limited – 22.2% (13.6% of Total Investments)             
1,400    Charlotte, North Carolina, Certificates of Participation, Governmental Facilities Projects,    6/13 at 100.00    AA+    1,509,172 
     Series 2003G, 5.375%, 6/01/26             
1,870    Dare County, North Carolina, Certificates of Participation, Series 2002, 5.250%, 6/01/15 –    12/12 at 100.00    AAA    2,010,942 
     AMBAC Insured             
1,250    Davidson County, North Carolina, Certificates of Participation, Series 2004, 5.250%, 6/01/21 –    6/14 at 100.00    AAA    1,357,763 
     AMBAC Insured             
1,390    Durham, North Carolina, Certificates of Participation, Series 2005B, 5.000%, 6/01/25    6/15 at 100.00    AA+    1,476,305 
470    Raleigh, North Carolina, Certificates of Participation, Downtown Improvement Project, Series    6/14 at 100.00    AA+    498,872 
     2004B, 5.000%, 6/01/20             
700    Sampson County, North Carolina, Certificates of Participation, Series 2006, 5.000%, 6/01/34 – (UB)    6/17 at 100.00    AAA    750,162 
7,080    Total Tax Obligation/Limited            7,603,216 
    Transportation – 6.2% (3.8% of Total Investments)             
450    Piedmont Triad Airport Authority, North Carolina, Airport Revenue Bonds, Series 2005A, 5.000%,    7/15 at 100.00    AAA    484,772 
     7/01/20 – XLCA Insured             
1,530    Raleigh Durham Airport Authority, North Carolina, Airport Revenue Bonds, Series 2001A, 5.250%,    5/11 at 101.00    Aaa    1,628,807 
     11/01/18 – FGIC Insured             
1,980    Total Transportation            2,113,579 
    U.S. Guaranteed – 15.5% (9.5% of Total Investments) (4)             
1,000    Broad River Water Authority, North Carolina, Water System Revenue Bonds, Series 2000, 5.375%,    6/10 at 101.00    Aaa    1,062,800 
     6/01/26 (Pre-refunded 6/01/10) – MBIA Insured             
500    Greensboro, North Carolina, Combined Enterprise System Revenue Bonds, Series 2001A, 5.125%,    6/11 at 101.00    AA+ (4)    533,405 
     6/01/21 (Pre-refunded 6/01/11)             
1,620    North Carolina Capital Facilities Financing Agency, Revenue Bonds, Duke University, Series    10/11 at 100.00    Aaa    1,721,185 
     2001A, 5.125%, 10/01/26 (Pre-refunded 10/01/11)             
800    North Carolina Medical Care Commission, Health System Revenue Bonds, Mission St. Joseph’s    10/11 at 101.00    AA (4)    859,536 
     Health System, Series 2001, 5.250%, 10/01/31 (Pre-refunded 10/01/11)             
1,020    University of North Carolina System, Pooled Revenue Refunding Bonds, Series 2002A, 5.375%,    10/12 at 100.00    Aaa    1,108,505 
     4/01/17 (Pre-refunded 10/01/12) – AMBAC Insured             
4,940    Total U.S. Guaranteed            5,285,431 
    Utilities – 22.1% (13.6% of Total Investments)             
    Greenville, North Carolina, Combined Enterprise System Revenue Bonds, Series 2001:             
1,000     5.250%, 9/01/20 – FSA Insured    9/11 at 101.00    AAA    1,068,640 
500     5.250%, 9/01/21 – FSA Insured    9/11 at 101.00    AAA    532,285 
500    North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Series 2005,    1/16 at 100.00    AAA    551,815 
     5.250%, 1/01/20 – AMBAC Insured             
2,500    North Carolina Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, Series    7/07 at 100.00    AAA    2,503,500 
     1993B, 5.500%, 1/01/17 – FGIC Insured             
1,000    North Carolina Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, Series    1/09 at 102.00    BBB    1,047,550 
     1999B, 5.650%, 1/01/16             
250    Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2005RR, 5.000%, 7/01/24 –    7/15 at 100.00    AAA    270,428 
     FGIC Insured             
1,500    Wake County Industrial Facilities and Pollution Control Financing Authority, North Carolina,    2/12 at 101.00    A3    1,600,815 
     Revenue Refunding Bonds, Carolina Power and Light Company, Series 2002, 5.375%, 2/01/17             
7,250    Total Utilities            7,575,033 
    Water and Sewer – 33.1% (20.2% of Total Investments)             
2,250    Charlotte, North Carolina, Water and Sewerage System Revenue Bonds, Series 2001,    6/11 at 101.00    AAA    2,384,145 
     5.125%, 6/01/26             
500    Greensboro, North Carolina, Combined Enterprise System Revenue Bonds, Series 2005A,    6/15 at 100.00    AA+    537,935 
     5.000%, 6/01/25             
400    Onslow County, North Carolina, Combined Enterprise System Revenue Bonds, Series 2004B,    6/14 at 100.00    AAA    426,128 
     5.000%, 6/01/23 – XLCA Insured             
    Raleigh, North Carolina, Combined Enterprise System Revenue Bonds, Series 2006A:             
4,440     5.000%, 3/01/31 (UB)    3/16 at 100.00    AAA    4,767,850 
3,015     5.000%, 3/01/36 (UB)    3/16 at 100.00    AAA    3,230,573 
10,605    Total Water and Sewer            11,346,631 
$        52,920    Total Investments (cost $53,780,083) – 163.4%            55,893,874 
    Floating Rate Obligations – (15.9)%            (5,435,000) 
    Other Assets Less Liabilities – 2.2%            740,340 
    Preferred Shares, at Liquidation Value – (49.7)%            (17,000,000) 
    Net Assets Applicable to Common Shares – 100%           $   34,199,214 

Forward Swaps outstanding at February 28, 2007:                         
        Fund            Fixed Rate            Unrealized 
    Notional    Pay/Receive    Floating Rate    Fixed Rate    Payment    Effective    Termination    Appreciation 
Counterparty    Amount    Floating Rate    Index    (Annualized)    Frequency    Date (5)    Date    (Depreciation) 
Goldman Sachs    $2,700,000    Receive    3-Month USD-LIBOR    5.682%    Semi-Annually    7/10/07    7/10/12    $(83,929) 
Goldman Sachs    800,000    Pay    3-Month USD-LIBOR    5.803       Semi-Annually    7/10/07    7/10/37    66,935 
                                $(16,994) 
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)                     

(1)    All percentages shown in the Portfolio of Investments are based on net assets applicable to Common 
    shares unless otherwise noted. 
(2)    Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. 
    There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities 
    may be subject to periodic principal paydowns. 
(3)    Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & 
    Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. 
(4)    Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency 
    securities which ensure the timely payment of principal and interest. Such investments are normally 
    considered to be equivalent to AAA rated securities. 
(5)    Effective date represents the date on which both the Fund and counterparty commence interest 
    payment accruals on each forward swap contract. 
N/R    Not rated. 
(UB)    Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the 
    provisions of SFAS No. 140. 

Income Tax Information

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses, timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions, and the treatment of investments in inverse floating rate transactions subject to SFAS No. 140.

At February 28, 2007, the cost of investments was $48,348,589.

Gross unrealized appreciation and gross unrealized depreciation of investments at February 28, 2007, were as follows:

Gross unrealized:     
  Appreciation    $2,116,717 
  Depreciation    (6,074) 
Net unrealized appreciation (depreciation) of investments    $2,110,643 

Item 2. Controls and Procedures.

  1. The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
  2. There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT Attached hereto.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)         Nuveen North Carolina Dividend Advantage Municipal Fund        

By (Signature and Title)*          /s/ Jessica R. Droeger                     
                                                    Jessica R. Droeger
                                                    Vice President and Secretary

Date         April 27, 2007        

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*         /s/ Gifford R. Zimmerman                    
                                                   Gifford R. Zimmerman
                                                   Chief Administrative Officer (principal executive officer) 

Date         April 27, 2007        

By (Signature and Title)*         /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                   Vice President and Controller (principal financial officer) 

Date        April 27, 2007        

* Print the name and title of each signing officer under his or her signature.