N-Q 1 nq2.htm NRB_NQ Unassociated Document



 
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)
 

Kevin J. McCarthy
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:         2/28/11         
 
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, 2011 
     
Principal 
   
Optional Call 
   
Amount (000) 
 
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Education and Civic Organizations – 9.9% (5.9% of Total Investments) 
     
$     380 
 
North Carolina Capital Facilities Financing Agency, Revenue Bonds, Duke University, Series 
10/11 at 100.00 
AA+ 
$   382,294 
   
2001A, 5.125%, 10/01/26 
     
150 
 
North Carolina Capital Facilities Financing Agency, Revenue Bonds, Johnson and Wales 
4/13 at 100.00 
N/R 
133,022 
   
University, Series 2003A, 5.000%, 4/01/33 – SYNCORA GTY Insured 
     
520 
 
University of North Carolina System, Pooled Revenue Refunding Bonds, Series 2002A, 5.375%, 
10/12 at 100.00 
A+ 
548,080 
   
4/01/17 – AMBAC Insured 
     
1,750 
 
University of North Carolina, Chapel Hill, System Net Revenue Bonds, Series 2001A, 
6/11 at 100.00 
Aaa 
1,765,453 
   
5.000%, 12/01/25 
     
400 
 
University of North Carolina, Chapel Hill, System Net Revenue Bonds, Series 2002B, 
No Opt. Call 
Aaa 
414,120 
   
5.000%, 12/01/11 
     
3,200 
 
Total Education and Civic Organizations 
   
3,242,969 
   
Health Care – 25.8% (15.4% of Total Investments) 
     
565 
 
Albemarle Hospital Authority, North Carolina, Health Care Facilities Revenue Bonds, Series 
10/17 at 100.00 
N/R 
410,037 
   
2007, 5.250%, 10/01/38 
     
950 
 
Charlotte-Mecklenberg Hospital Authority, North Carolina, Carolinas HealthCare System Revenue 
1/18 at 100.00 
AA– 
860,833 
   
Bonds, Series 2008A, 5.000%, 1/15/47 
     
1,000 
 
Charlotte-Mecklenberg Hospital Authority, North Carolina, Health Care Refunding Revenue Bonds, 
1/19 at 100.00 
AA– 
967,260 
   
Carolinas HealthCare System, Series 2009A, 5.250%, 1/15/39 
     
250 
 
Johnston Memorial Hospital Authority, North Carolina, Mortgage Revenue Bonds, Johnston 
4/18 at 100.00 
AA+ 
245,328 
   
Memorial Hospital Project, Series 2008, 5.250%, 10/01/36 – AGM Insured 
     
30 
 
New Hanover County, North Carolina, Hospital Revenue Bonds, New Hanover Regional Medical 
10/19 at 100.00 
AA+ 
29,735 
   
Center, Series 2006B, 5.125%, 10/01/31 – AGM Insured 
     
1,000 
 
North Carolina Medical Care Commission Health Care Facilities Revenue Bonds Novant Health 
11/20 at 100.00 
A+ 
944,040 
   
Inc., Series 2010A, 5.250%, 11/01/40 
     
180 
 
North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, Appalchian 
7/21 at 100.00 
BBB+ 
182,140 
   
Regional HealthCare System, Series 2011A, 6.500%, 7/01/31 
     
280 
 
North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds, WakeMed, Series 
10/14 at 100.00 
AA+ 
282,243 
   
2009A, 5.625%, 10/01/38 – AGC Insured 
     
1,110 
 
North Carolina Medical Care Commission, Healthcare Facilities Revenue Bonds, Union Regional 
1/12 at 100.00 
A+ 
1,129,070 
   
Medical Center, Series 2002A, 5.250%, 1/01/15 
     
980 
 
North Carolina Medical Care Commission, Healthcare Revenue Bonds, Carolina Medicorp, Series 
5/11 at 100.00 
A+ 
980,215 
   
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 
1,506,270 
   
Center, Series 2002, 5.250%, 6/01/22 
     
500 
 
North Carolina Medical Care Commission, Hospital Revenue Bonds, Wilson Medical Center, Series 
11/17 at 100.00 
A– 
508,765 
   
2007, 5.000%, 11/01/20 
     
250 
 
North Carolina Medical Care Commission, Revenue Bonds, Blue Ridge Healthcare System, Series 
1/15 at 100.00 
A 
236,633 
   
2005, 5.000%, 1/01/33 – FGIC Insured 
     
150 
 
Northern Hospital District of Surry County, North Carolina, Health Care Facilities Revenue 
4/18 at 100.00 
BBB 
146,901 
   
Bonds, Series 2008, 6.250%, 10/01/38 
     
8,745 
 
Total Health Care 
   
8,429,470 
   
Housing/Single Family – 4.5% (2.7% of Total Investments) 
     
370 
 
North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, 1998 Trust Agreement, 
7/11 at 100.00 
AA 
363,988 
   
Series 10A, 5.400%, 7/01/32 – AMBAC Insured (Alternative Minimum Tax) 
     
580 
 
North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, 1998 Trust Agreement, 
7/11 at 100.00 
AA 
580,017 
   
Series 5A, 5.625%, 7/01/30 (Alternative Minimum Tax) 
     
250 
 
North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, Series 2007-29A, 4.800%, 
1/17 at 100.00 
AA 
228,230 
   
7/01/33 (Alternative Minimum Tax) 
     
330 
 
North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, Series 25-A, 4.900%, 
7/16 at 100.00 
AA 
300,043 
   
7/01/37 (Alternative Minimum Tax) 
     
1,530 
 
Total Housing/Single Family 
   
1,472,278 
   
Long-Term Care – 1.7% (1.0% of Total Investments) 
     
   
North Carolina Medical Care Commission, Healthcare Facilities Revenue Bonds, Presbyterian 
     
   
Homes, Series 2006: 
     
200 
 
5.400%, 10/01/27 
10/16 at 100.00 
N/R 
174,184 
300 
 
5.500%, 10/01/31 
10/16 at 100.00 
N/R 
252,720 
150 
 
North Carolina Medical Care Commission, Revenue Bonds, Pines at Davidson, Series 2006A, 
1/16 at 100.00 
N/R 
128,167 
   
5.000%, 1/01/36 
     
650 
 
Total Long-Term Care 
   
555,071 
   
Materials – 1.1% (0.6% of Total Investments) 
     
400 
 
Columbus County Industrial Facilities and Pollution Control Financing Authority, North 
3/17 at 100.00 
BBB 
348,383 
   
Carolina, Environmental Improvement Revenue Bonds, International Paper Company Project, 
     
   
Series 2007A, 4.625%, 3/01/27 
     
   
Tax Obligation/General – 11.7% (7.0% of Total Investments) 
     
1,000 
 
Durham, North Carolina, General Obligation Bonds, Series 2007, 5.000%, 4/01/21 
4/17 at 100.00 
AAA 
1,113,510 
   
North Carolina, General Obligation Bonds, Series 2004A: 
     
1,000 
 
5.000%, 3/01/18 
3/14 at 100.00 
AAA 
1,100,120 
1,000 
 
5.000%, 3/01/22 
3/14 at 100.00 
AAA 
1,077,140 
550 
 
Wake County, North Carolina, Limited Obligation Bonds, Series 2010, 5.000%, 1/01/37 
1/20 at 100.00 
AA+ 
550,550 
3,550 
 
Total Tax Obligation/General 
   
3,841,320 
   
Tax Obligation/Limited – 27.5% (16.4% of Total Investments) 
     
1,400 
 
Charlotte, North Carolina, Certificates of Participation, Governmental Facilities Projects, 
6/13 at 100.00 
AA+ 
1,434,230 
   
Series 2003G, 5.375%, 6/01/26 (UB) 
     
200 
 
Charlotte, North Carolina, Certificates of Participation, Nascar Hall of Fame, Series 2009C, 
6/19 at 100.00 
AA+ 
197,450 
   
5.000%, 6/01/39 
     
305 
 
Charlotte, North Carolina, Certificates of Participation, Transit Projects Phase 2, Series 
6/18 at 100.00 
AA+ 
306,357 
   
2008A, 5.000%, 6/01/33 
     
160 
 
Craven County, North Carolina, Certificates of Participation, Series 2007, 5.000%, 6/01/23 – 
6/17 at 100.00 
AA– 
167,554 
   
NPFG Insured 
     
1,870 
 
Dare County, North Carolina, Certificates of Participation, Series 2002, 5.250%, 6/01/15 – 
12/12 at 100.00 
AA– 
1,996,355 
   
AMBAC Insured 
     
1,250 
 
Davidson County, North Carolina, Certificates of Participation, Series 2004, 5.250%, 6/01/21 – 
6/14 at 100.00 
Aa3 
1,297,875 
   
AMBAC Insured 
     
1,390 
 
Durham, North Carolina, Certificates of Participation, Series 2005B, 5.000%, 6/01/25 
6/15 at 100.00 
AA+ 
1,419,968 
50 
 
Harnett County, North Carolina, Certificates of Participation, Series 2009, 5.000%, 6/01/28 – 
6/19 at 100.00 
AA+ 
50,282 
   
AGC Insured 
     
525 
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2010A, 
No Opt. Call 
A+ 
106,223 
   
0.000%, 8/01/35 
     
470 
 
Raleigh, North Carolina, Certificates of Participation, Downtown Improvement Project, Series 
6/14 at 100.00 
AA+ 
494,868 
   
2004B, 5.000%, 6/01/20 
     
170 
 
Raleigh, North Carolina, Certificates of Participation, Series 2007, 5.000%, 2/01/27 
2/17 at 100.00 
AA+ 
174,684 
150 
 
Rutherford County, North Carolina, Certificates of Participation, Series 2007, 5.000%, 
12/17 at 100.00 
AA+ 
153,222 
   
12/01/27 – AGM Insured 
     
700 
 
Sampson County, North Carolina, Certificates of Participation, Series 2006, 5.000%, 6/01/34 – 
6/17 at 100.00 
AA+ 
678,881 
   
AGM Insured (UB) 
     
250 
 
Wilmington, North Carolina, Certificates of Participation, Series 2008A, 5.000%, 6/01/29 
6/18 at 100.00 
AA 
255,243 
250 
 
Wilson County, North Carolina, Certificates of Participation, School Facilities Project, 
4/17 at 100.00 
Aa3 
252,998 
   
Series 2007, 5.000%, 4/01/25 – AMBAC Insured 
     
9,140 
 
Total Tax Obligation/Limited 
   
8,986,190 
   
Transportation – 9.3% (5.6% of Total Investments) 
     
1,000 
 
Charlotte, North Carolina, Airport Revenue Bonds, Charlotte Douglas International Refunding 
7/20 at 100.00 
A+ 
942,220 
   
Series 2010A, 5.000%, 7/01/39 
     
360 
 
North Carolina State Ports Authority, Port Facilities Revenue Bonds, Senior Lien Series 2010A, 
2/20 at 100.00 
A3 
340,758 
   
5.250%, 2/01/40 
     
   
North Carolina Turnpike Authority, Triangle Expressway System Revenue Bonds, Series 2009A: 
     
50 
 
5.375%, 1/01/26 – AGC Insured 
1/19 at 100.00 
AA+ 
52,040 
275 
 
5.750%, 1/01/39 – AGC Insured 
1/19 at 100.00 
AA+ 
278,174 
   
North Carolina Turnpike Authority, Triangle Expressway System Senior Lien Revenue Bonds, 
     
   
Series 2009B: 
     
2,270 
 
0.000%, 1/01/34 – AGC Insured 
No Opt. Call 
AA+ 
557,807 
175 
 
0.000%, 1/01/38 – AGC Insured 
No Opt. Call 
AA+ 
32,597 
300 
 
Piedmont Triad Airport Authority, North Carolina, Airport Revenue Bonds, Series 2005A, 5.000%, 
7/15 at 100.00 
A2 
315,558 
   
7/01/20 – SYNCORA GTY Insured 
     
550 
 
Raleigh Durham Airport Authority, North Carolina, Airport Revenue Bonds, Refunding Series 
No Opt. Call 
Aa3 
539,154 
   
2010A, 5.000%, 5/01/36 
     
4,980 
 
Total Transportation 
   
3,058,308 
   
U.S. Guaranteed – 20.6% (12.3% of Total Investments) (4) 
     
100 
 
Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds, DBA 
1/15 at 100.00 
AAA 
113,517 
   
Carolinas Healthcare System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded 1/15/15) 
     
500 
 
Greensboro, North Carolina, Combined Enterprise System Revenue Bonds, Series 2001A, 5.125%, 
6/11 at 101.00 
AAA 
511,240 
   
6/01/21 (Pre-refunded 6/01/11) 
     
   
Greenville, North Carolina, Combined Enterprise System Revenue Bonds, Series 2001: 
     
1,000 
 
5.250%, 9/01/20 (Pre-refunded 9/01/11) – AGM Insured 
9/11 at 101.00 
AA+ (4) 
1,034,630 
500 
 
5.250%, 9/01/21 (Pre-refunded 9/01/11) – AGM Insured 
9/11 at 101.00 
AA+ (4) 
517,315 
620 
 
North Carolina Capital Facilities Financing Agency, Revenue Bonds, Duke University, Series 
10/11 at 100.00 
AAA 
637,422 
   
2001A, 5.125%, 10/01/26 (Pre-refunded 10/01/11) 
     
125 
 
North Carolina Capital Facilities Financing Agency, Revenue Bonds, High Point University, 
9/11 at 101.00 
N/R (4) 
128,988 
   
Series 2001, 5.125%, 9/01/18 (Pre-refunded 9/01/11) 
     
800 
 
North Carolina Medical Care Commission, Health System Revenue Bonds, Mission St. Joseph’s 
10/11 at 101.00 
AA (4) 
831,056 
   
Health System, Series 2001, 5.250%, 10/01/31 (Pre-refunded 10/01/11) 
     
300 
 
North Carolina Medical Care Commission, Revenue Bonds, Northeast Medical Center, Series 2004, 
11/14 at 100.00 
Aa3 (4) 
342,150 
   
5.000%, 11/01/24 (Pre-refunded 11/01/14) 
     
530 
 
Raleigh Durham Airport Authority, North Carolina, Airport Revenue Bonds, Series 2001A, 5.250%, 
5/11 at 101.00 
Aa3 (4) 
539,916 
   
11/01/18 (Pre-refunded 5/01/11) – FGIC Insured 
     
   
University of North Carolina System, Pooled Revenue Refunding Bonds, Series 2002A: 
     
1,020 
 
5.375%, 4/01/17 (Pre-refunded 10/01/12) – AMBAC Insured 
10/12 at 100.00 
N/R (4) 
1,098,132 
910 
 
5.375%, 4/01/17 (Pre-refunded 10/01/12) – AMBAC Insured 
10/12 at 100.00 
N/R (4) 
978,951 
6,405 
 
Total U.S. Guaranteed 
   
6,733,317 
   
Utilities – 8.8% (5.2% of Total Investments) 
     
500 
 
North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Series 2005, 
1/16 at 100.00 
A– 
541,785 
   
5.250%, 1/01/20 – AMBAC Insured 
     
745 
 
North Carolina Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, Series 
5/11 at 100.00 
Baa1 
746,408 
   
1993B, 5.500%, 1/01/17 – FGIC Insured 
     
25 
 
North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Refunding Series 
1/19 at 100.00 
A 
25,273 
   
2009A, 5.000%, 1/01/30 
     
1,500 
 
Wake County Industrial Facilities and Pollution Control Financing Authority, North Carolina, 
2/12 at 101.00 
A1 
1,568,625 
   
Revenue Refunding Bonds, Carolina Power and Light Company, Series 2002, 5.375%, 2/01/17 
     
2,770 
 
Total Utilities 
   
2,882,091 
   
Water and Sewer – 46.8% (27.9% of Total Investments) 
     
100 
 
Brunswick County, North Carolina, Enterprise System Revenue Bonds, Series 2008A, 5.000%, 
4/18 at 100.00 
AA+ 
100,499 
   
4/01/31 – AGM Insured 
     
505 
 
Cape Fear Public Utility Authority, North Carolina, Water & Sewer System Revenue Bonds, Series 
8/18 at 100.00 
AA 
508,873 
   
2008, 5.000%, 8/01/35 
     
2,250 
 
Charlotte, North Carolina, Water and Sewerage System Revenue Bonds, Series 2001, 
6/11 at 101.00 
AAA 
2,288,768 
   
5.125%, 6/01/26 
     
1,000 
 
Charlotte, North Carolina, Water and Sewerage System Revenue Bonds, Series 2008, 
7/18 at 100.00 
AAA 
1,016,210 
   
5.000%, 7/01/38 
     
250 
 
Dare County, North Carolina, Utilities System Revenue Bonds, Series 2011, 5.000%, 2/01/41 
2/21 at 100.00 
AA 
248,645 
500 
 
Greensboro, North Carolina, Combined Enterprise System Revenue Bonds, Series 2005A, 
6/15 at 100.00 
AAA 
522,495 
   
5.000%, 6/01/25 
     
700 
 
Oak Island, North Carolina, Enterprise System Revenue Bonds, Series 2009A, 6.000%, 6/01/34 – 
6/19 at 100.00 
AA+ 
722,442 
   
AGC Insured 
     
400 
 
Onslow County, North Carolina, Combined Enterprise System Revenue Bonds, Series 2004B, 5.000%, 
6/14 at 100.00 
A 
413,688 
   
6/01/23 – SYNCORA GTY Insured 
     
500 
 
Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, 
7/18 at 100.00 
Baa1 
464,765 
   
6.000%, 7/01/44 
     
   
Raleigh, North Carolina, Combined Enterprise System Revenue Bonds, Series 2006A: 
     
4,440 
 
5.000%, 3/01/31 (UB) 
3/16 at 100.00 
AAA 
4,577,684 
3,000 
 
5.000%, 3/01/36 (UB) 
3/16 at 100.00 
AAA 
3,043,080 
5 
 
Raleigh, North Carolina, Combined Enterprise System Revenue Bonds, Series 2006A, Residuals 
No Opt. Call 
AAA 
5,215 
   
Series II-R-645-2, 13.840%, 3/01/14 (IF) 
     
1,385 
 
Winston-Salem, North Carolina, Water and Sewer System Revenue Bonds, Series 2007A, 5.000%, 
6/17 at 100.00 
AAA 
1,396,371 
   
6/01/37 (UB) 
     
15,035 
 
Total Water and Sewer 
   
15,308,735 
$ 56,405 
 
Total Investments (cost $54,417,799) – 167.7% 
   
54,858,132 
   
Floating Rate Obligations – (21.9)% 
   
(7,160,000)
   
MuniFund Term Preferred Shares, at Liquidation Value – (50.7)% (5) 
   
(16,600,000)
   
Other Assets Less Liabilities – 4.9% 
   
1,617,972 
   
Net Assets Applicable to Common Shares – 100% 
   
$ 32,716,104 
 
 

 
 
 

 
 
Fair Value Measurements
 
 
Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
 
 
Level 1 – Quoted prices in active markets for identical securities.
 
 
Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
 
 
Level 3 – Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
 
 
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund's fair value measurements as of February 28, 2011:
 
         
 
Level 1 
Level 2 
Level 3 
Total 
Investments: 
       
Municipal Bonds 
$ — 
$54,858,132 
$ — 
$54,858,132 
During the period ended February 28, 2011, the Fund recognized no significant transfers to/from Level 1, 
Level 2 or Level 3. 
       
 
 
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 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 securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.
 
 
At February 28, 2011, the cost of investments was $47,228,602.
 
 
Gross unrealized appreciation and gross unrealized depreciation of investments at February 28, 2011, were as follows:
 
   
Gross unrealized: 
 
  Appreciation 
$1,365,369 
  Depreciation 
(895,853)
Net unrealized appreciation (depreciation) of investments 
$   469,516 
 
     
(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 highest of Standard & Poor’s Group ("Standard & Poor's"), Moody’s Investor Service, 
   
Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or 
   
BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by 
   
any of these national rating agencies. 
(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) 
 
MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.3%. 
N/R 
 
Not rated. 
(IF) 
 
Inverse floating rate investment. 
(UB) 
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction. 
 
 
 
 

 
Item 2. Controls and Procedures.

a.  
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)).
 
 
b.  
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: See 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/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date         April 29, 2011        
 
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 29, 2011        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date         April 29, 2011