- Certified annual shareholder report for management investment companies (N-CSR)

Share Name	Share Symbol	Market	Type
Nuveen North Carolina Dividend Advantage Municipal Fund 3 IT IS A Newly Organized, Non-Diversified, Closed-End Management Invest	AMEX:NII	AMEX	Ordinary Share

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21158

Nuveen North Carolina Dividend Advantage Municipal Fund 3

(Exact name of registrant as specified in charter)

Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606

(Address of principal executive offices) (Zip code)

Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606

(Name and address of agent for service)

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

Date of fiscal year end: May 31

Date of reporting period: May 31, 2010

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR 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 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. ss. 3507.

ITEM 1. REPORTS TO STOCKHOLDERS.

LOGO: NUVEEN INVESTMENTS

Closed-End Funds

Nuveen Investments
Municipal Closed-End Funds

IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)

Annual Report
May 31, 2010

----------------------- ----------------------- -----------------------
NUVEEN GEORGIA NUVEEN GEORGIA NUVEEN GEORGIA
PREMIUM INCOME DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE
MUNICIPAL FUND MUNICIPAL FUND MUNICIPAL FUND 2
NPG NZX NKG

----------------------- ----------------------- -----------------------
NUVEEN NORTH NUVEEN NORTH NUVEEN NORTH
CAROLINA PREMIUM CAROLINA DIVIDEND CAROLINA DIVIDEND
INCOME MUNICIPAL FUND ADVANTAGE MUNICIPAL ADVANTAGE MUNICIPAL
NNC FUND FUND 2
 NRB NNO

-----------------------

NUVEEN NORTH
CAROLINA DIVIDEND
ADVANTAGE MUNICIPAL
FUND 3
NII

MAY 10

LIFE IS COMPLEX.

Nuveen makes things e-simple.

It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Fund information is ready. No more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish.

Free e-Reports right to your e-mail!

WWW.INVESTORDELIVERY.COM

If you receive your Nuveen Fund dividends and statements from your financial advisor or brokerage account.

WWW.NUVEEN.COM/ACCOUNTACCESS

If you receive your Nuveen Fund dividends and statements directly from Nuveen.

LOGO: NUVEEN INVESTMENTS

Chairman's
Letter to Shareholders

[PHOTO OF ROBERT P. BREMNER]

DEAR SHAREHOLDER,

The economic environment in which your Fund operates reflects continuing but uneven economic recovery. The U.S. and other major industrial countries are experiencing steady but comparatively low levels of economic growth, while emerging market countries are seeing a resumption of relatively strong economic expansion. The potential impact of steps being considered by many governments to counteract the extraordinary governmental spending and credit expansion to deal with the recent financial and economic crisis is injecting uncertainty into global financial markets. The implications for future tax rates, government spending, interest rates and the pace of economic recovery in the U.S. and other leading economies are extremely difficult to predict at the present time. The long term health of the global economy depends on restoring some measure of fiscal discipline around the world, but since all of the corrective steps require economic pain, it is not surprising that governments are reluctant to undertake them.

In the near term, governments remain committed to furthering economic recovery and realizing a meaningful reduction in their national unemployment rates. Such an environment should produce continued economic growth and, consequently, attractive investment opportunities. Over the longer term, the larger uncertainty mentioned earlier carries the risk of unexpected potholes in the road to sustained recovery. For this reason, Nuveen's investment management teams are working hard to balance return and risk by building well-diversified portfolios, among other strategies. I encourage you to read the following commentary on the management of your Fund. As always, I also encourage you to contact your financial consultant if you have any questions about your Nuveen Fund investment. Please consult the Nuveen website for the most recent information on your Nuveen Fund at: www.nuveen.com.

On behalf of the other members of your Fund's Board, we look forward to continuing to earn your trust in the months and years ahead.

Sincerely,

/s/ Robert P. Bremner
-----------------------------------
Robert P. Bremner
Chairman of the Board
July 22, 2010

Nuveen Investments 1

Portfolio Manager's Comments

NUVEEN GEORGIA PREMIUM INCOME MUNICIPAL FUND (NPG) NUVEEN GEORGIA DIVIDEND ADVANTAGE MUNICIPAL FUND (NZX) NUVEEN GEORGIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2 (NKG) NUVEEN NORTH CAROLINA PREMIUM INCOME MUNICIPAL FUND (NNC) NUVEEN NORTH CAROLINA DIVIDEND ADVANTAGE MUNICIPAL FUND (NRB) NUVEEN NORTH CAROLINA DIVIDEND ADVANTAGE MUNICIPAL FUND 2 (NNO) NUVEEN NORTH CAROLINA DIVIDEND ADVANTAGE MUNICIPAL FUND 3 (NII)

Portfolio manager Daniel Close reviews economic and municipal market conditions at the national and state levels, key investment strategies, and the twelve-month performance of the Nuveen Georgia and North Carolina Funds. Dan, who joined Nuveen in 2000, assumed portfolio management responsibility for these seven Funds in 2007.

WHAT FACTORS AFFECTED THE U.S. ECONOMIC AND MUNICIPAL MARKET ENVIRONMENTS DURING THE TWELVE-MONTH REPORTING PERIOD ENDED MAY 31, 2010?

During this reporting period, municipal bond prices generally rose as strong cash flows into municipal bond funds combined with tighter supply of new tax-exempt issuance to provide favorable supply and demand conditions. As the period began, there continued to be considerable downward pressure on the economy, and both the Federal Reserve (Fed) and the federal government continued their efforts to improve the overall economic environment. For its part, the Fed continued to hold the benchmark fed funds rate in a target range of zero to 0.25% after cutting it to this record low level in December 2008. At its June 2010 meeting (following the end of this reporting period), the central bank renewed its pledge to keep the fed funds rate "exceptionally low" for an "extended period." As part of its efforts, the federal government put into place the American Recovery and Reinvestment Act of 2009, a $787 billion economic stimulus package intended to provide job creation, tax relief, fiscal assistance to state and local governments and expansion of unemployment benefits and other federal social welfare programs.

In recent months, these and other measures taken by the Fed and the government to ease the economic recession have produced some incipient signs of improvement. In the first quarter of 2010, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.7%. This marked the first time since 2007 that the economy managed to string together three consecutive positive quarters. Housing also provided something of a bright spot, as the average home price gained 3.8% for the twelve months ended April 2010, the largest year-over-year increase since September 2006. At the same time, inflation continued to be relatively tame, as the Consumer Price Index (CPI) rose 2.0% year-over-year as of May 2010, driven mainly by

CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGER AS OF THE DATE OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS, AND THE VIEWS EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.

2 Nuveen Investments

increased prices for gasoline and fuel oil. The core CPI (which excludes food and energy) rose 0.9% over the year, the slowest pace since 1966 and within the Fed's official objective of 2.0% or lower for this measure. While labor markets remained weak, recent months saw improvement. As of May 2010, the national unemployment rate was 9.7%, up from 9.4% in May 2009 but below the 26-year high of 10.1% in October 2009.

Municipal market conditions began to show general signs of improvement throughout most of the period. This trend was bolstered by the reduced issuance of tax-exempt municipal debt, due in part to the introduction of the Build America Bond program in 2009. Build America Bonds are a new class of taxable municipal debt created as part of the February 2009 economic stimulus package. These bonds currently offer municipal issuers a federal subsidy equal to 35% of the bonds' interest payments and therefore provide issuers with an attractive alternative to traditional tax-exempt debt. During the twelve months ended May 31, 2010, taxable Build America Bonds issuance totaled $95.9 billion, accounting for over 22% of new bonds issued in the municipal market.

Over the twelve months ended May 31, 2010, municipal bond issuance nationwide- both tax-exempt and taxable-totaled $428.1 billion, an increase of 17% compared with the twelve-month period ended May 31, 2009. Although total municipal issuance rose during these twelve months, supply actually would have fallen approximately 9% without the Build America Bonds issuance. Demand for tax-exempt bonds remained strong during this period, supported in part by concerns about potential tax increases. Combined with the lower supply of tax-exempt bonds, this provided support for municipal bond prices.

HOW WERE ECONOMIC AND MARKET CONDITIONS IN GEORGIA AND NORTH CAROLINA DURING THIS PERIOD?

Georgia has a diverse economic base supported by service, manufacturing and agricultural industries. The state also serves as a key transportation hub, with one of the busiest airports in the world (Hartsfield-Jackson Atlanta International Airport) and major port facilities on the coast, including the Port of Savannah, the fastest-growing container port. As of May 2010, unemployment in Georgia was 10.2%, up from 9.5% in May 2009, but below the recent high of 10.5% in February and March 2010. Like most other states, Georgia's finances have suffered due to declining revenues. The state's $18.6 billion budget for fiscal 2010 was balanced by cutting expenditures by 12%, including a $1 billion reduction in education spending. As of May 2010, Georgia's general obligation debt continued to be rated Aaa/AAA/AAA with stable outlooks by Moody's, Standard & Poor's (S&P) and Fitch, respectively. All three agencies confirmed their Georgia ratings during the fourth quarter of 2009. For the twelve months ended May 31, 2010, municipal issuance in Georgia totaled $12.1 billion, up 43% from the previous twelve months.

In the years preceding the current recession, North Carolina worked to transition its economy away from old-line manufacturing into sectors oriented toward research, technology and services. The state now serves as a leader in high-tech business startups, with the Research Triangle Park near Raleigh-Durham representing the largest research park in the nation. This high-tech base, working in conjunction with the state's major universities, government and businesses, provided some resilience during the downturn. As of May 2010, North Carolina's unemployment rate was 10.3%, down

Nuveen Investments 3

from 10.9% in May 2009 and below the state's all-time high of 11.2% in February 2010. While the pre-recession bubble in housing prices was smaller in North Carolina than nationally, the state's housing market has been slower to reverse the decline. For fiscal 2011, the $19 billion North Carolina state budget cut health care and other programs in order to preserve more teaching positions in public schools and University of North Carolina system campuses. As of May 2010, Moody's, S&P and Fitch rated North Carolina general obligation debt at Aaa/AAA/AAA, respectively, with stable outlooks. During the twelve months ended May 31, 2010, $9.6 billion of municipal debt was issued in North Carolina, up 18.5% from that issued during the twelve months ended May 31, 2009.

WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING PERIOD?

As previously mentioned, the availability of tax-exempt bonds declined nationally during this period, due in part to the introduction of taxable Build America Bonds in April 2009. This program also impacted tax-exempt supply in Georgia and North Carolina. In Georgia, which had the third largest Build American Bond deal of the first quarter of 2010 ($2.3 billion in bonds issued for the Municipal Electric Authority of Georgia/Plant Vogtle), Build America Bond issuance represented approximately 25% of municipal supply over the past twelve months. During the same period, these bonds comprised about 10% of municipal issuance in North Carolina. Since interest payments from Build America Bonds represent taxable income, we do not view these bonds as good investment opportunities for the Georgia and North Carolina Funds.

Despite the constrained issuance of tax-exempt municipal supply, we continued to find attractive value opportunities, taking a bottom-up approach to discovering undervalued sectors and individual credits with the potential to perform well over the long term. In the Georgia Funds, we found value in several areas of the market, primarily the health care sector and tax increment financing district bonds. The North Carolina Funds purchased transportation credits (including bonds issued for the Charlotte airport and North Carolina State Ports Authority), county appropriation bonds and dedicated tax bonds backed by Puerto Rico sales taxes. NNO also added a higher education bond.

Some of our investment activity during this period was driven by opportunities created by the provisions of the Build America Bond program. For example, tax-exempt supply was more plentiful in the health care and higher education sectors because, as 501(c)(3) (nonprofit) organizations, hospitals and private universities generally do not qualify for the Build America Bond program and must continue to issue bonds in the tax-exempt municipal market. In addition, health care entities were active issuers during this period, as they sought to replace variable rate issuance with fixed rates. Refunding issues also are not covered by the Build America Bond program, and this resulted in attractive opportunities in various other sectors of the market.

The impact of the Build America Bond program was also evident in the area of longer-term issuance, as municipal issuers sought to take full advantage of the attractive financing terms offered by these bonds. Approximately 70% of Build America Bonds were issued with maturities of at least 30 years or more. Even though this significantly reduced the availability of tax-exempt credits with longer maturities, we continued to

4 Nuveen Investments

find good opportunities to purchase attractive longer-term bonds for these Funds. During this period, we generally focused on bonds at the longer end of the yield curve, particularly in North Carolina, where we sought to lengthen the Funds' durations.

Cash for new purchases during this period was generated primarily by the proceeds from called bonds, particularly in North Carolina, as well as maturing issues. In addition, NZX, NNC, NNO and NII sold small amounts of pre-refunded credits. NRB also sold a lower-rated university bond where we had some credit concerns. On the whole, however, selling was relatively limited during this period, because the bonds in our portfolios generally offered higher yields than those available in the current marketplace.

As of May 31, 2010, all seven of these Funds continued to use inverse floating rate securities. (1) We employ inverse floaters as a form of leverage for a variety of reasons,including duration management as well as income and total return enhancement.

HOW DID THE FUNDS PERFORM?

Individual results for the Nuveen Georgia and North Carolina Funds, as well as relevant index and peer group information, are presented in the accompanying table.

AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE FOR PERIODS ENDED 5/31/10

<CAPTION
 1-YEAR 5-YEAR 10-YEAR
-------------------------------------------------------------------------------------------
GEORGIA FUNDS
NPG 10.52% 3.93% 6.82%
NZX 11.41% 4.50% N/A
NKG 12.54% 4.12% N/A

Standard & Poor's (S&P) Georgia Municipal Bond Index(2) 8.37% 4.16% 5.76%

Standard & Poor's (S&P) National Municipal Bond Index(3) 9.27% 4.31% 5.85%

Lipper Other States Municipal Debt Funds Average(4) 14.35% 4.04% 6.78%

NORTH CAROLINA FUNDS
NNC 12.24% 4.51% 7.15%
NRB 10.88% 5.20% N/A
NNO 11.11% 4.71% N/A
NII 10.95% 4.92% N/A

Standard & Poor's (S&P) North Carolina Municipal Bond Index(2) 7.68% 4.70% 6.13%

Standard & Poor's (S&P) National Municipal Bond Index(3) 9.27% 4.31% 5.85%

Lipper Other States Municipal Debt Funds Average(4) 14.35% 4.04% 6.78%
-------------------------------------------------------------------------------------------

For the twelve months ended May 31, 2010, the total returns on common share net asset value (NAV) for all of the Georgia and North Carolina Funds exceeded the returns for their respective state's S&P Municipal Bond Index as well as the S&P National Municipal Bond Index. For the same period, all of the Funds underperformed the average return for the Lipper Other States Municipal Debt Funds Average. Shareholders

Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares.

For additional information, see the individual Performance Overview for your Fund in this report.

(1) An inverse floating rate security, also known as an inverse floater, is a financial instrument designed to pay long-term tax-exempt interest at a rate that varies inversely with a short-term tax-exempt interest rate index. For the Nuveen Funds, the index typically used is the Securities Industry and Financial Markets (SIFM) Municipal Swap Index (previously referred to as the Bond Market Association Index or BMA). Inverse floaters, including those inverse floating rate securities in which the Funds invested during this reporting period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in this Report sections of this report.

(2) The Standard & Poor's (S&P) Municipal Bond Indexes for Georgia and North Carolina are unleveraged, market value-weighted indexes designed to measure the performance of the tax-exempt, investment-grade Georgia and North Carolina municipal bond markets, respectively. These indexes do not reflect any initial or ongoing expenses and are not available for direct investment.

(3) The Standard & Poor's (S&P) National Municipal Bond Index is an unleveraged, market value weighted index designed to measure the performance of the tax-exempt, investment grade U.S. municipal bond market. This index does not reflect any initial or ongoing expenses and is not available for direct investment.

(4) The Lipper Other States Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: 1-year, 46 funds; 5-year, 46 funds; and 10-year, 18 fund. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper Average is not available for direct investment.

Nuveen Investments 5

should note that the performance of the Lipper Other States category represents the overall average of returns for funds from ten different states with a wide variety of municipal market conditions, which may make direct comparisons less meaningful.

Key management factors that influenced the Funds' returns during this period included yield curve and duration positioning, credit exposure and sector allocation. In addition, the use of structural leverage was an important positive factor during this period. The impact of structural leverage is discussed in more detail on page seven.

During this period, bonds with longer maturities generally outperformed bonds with shorter maturities, with bonds at the longest end of the yield curve posting the strongest returns. The outperformance of longer term bonds was due in part to the decline in interest rates, particularly at the longer end of the curve. The scarcity of tax-exempt bonds with longer maturities also drove up the prices of these bonds. Overall, duration positioning proved positive for the performance of NPG, NKG, NNC and NII. All four of these Funds were underweighted in the shortest part of the yield curve that produced the weakest returns. NNO was overweighted in this part of the curve, while NZX and NRB were underweighted in the longer area of the curve that performed well. This positioning detracted from performance in these three Funds.

Credit exposure also played an important role in the performance of these Funds. The demand for municipal bonds increased during this period, driven by a variety of factors, including concerns about potential tax increases, the need to rebalance portfolio allocations and a growing appetite for additional risk. At the same time, the supply of new tax-exempt municipal paper declined, due largely to the Build America Bond program. As investors bid up municipal bond prices, bonds rated BBB or below and non-rated bonds generally outperformed those rated AAA. In this environment, the Funds' performance benefited from their allocations to lower quality credits. Among the Georgia Funds, this was especially true in NKG and NZX and less so in NPG, which had the smallest allocation of lower-rated bonds among the three. In North Carolina, which is a very high quality state, all of the Funds tended to have higher overall credit quality positions, particularly NRB, which had the highest allocation to AAA-rated bonds. This higher credit quality restrained the relative performance of these four Funds during this period.

Among the market sectors, both industrial development revenue (IDR) and health care bonds exceeded the overall municipal market return by substantial margins during this period. NNO, in particular, was helped by its larger exposure to the health care sector. Revenue bonds as a whole performed well, with transportation, housing, and special tax among the other sectors that outperformed the general municipal market for this period. Zero coupon bonds also were among the strongest performers. The best performing bond in all four North Carolina Funds for this period was a zero coupon Turnpike bond rated Baa3 (with AAA insurance from Assured Guarantee) that benefited from its structure, sector and underlying credit rating.

6 Nuveen Investments

In contrast, pre-refunded bonds, which are often backed by U.S. Treasury securities, performed relatively poorly during this period. The underperformance of these bonds can be attributed primarily to their shorter effective maturities and higher credit quality. In their respective states, NKG and NNO held the smallest allocations of pre-refunded bonds, while NZX and NII held the largest. Among the revenue sectors, education, electric utilities, water and sewer and resource recovery trailed the overall municipal market by small margins, while many general obligation and other tax-backed bonds also failed to keep pace with the market for the twelve months. The Georgia and North Carolina Funds were negatively impacted by their holdings in the education and utilities sectors, respectively, while the North Carolina Funds were generally underweighted in tax-backed bonds, which lessened the impact of the underperformance of these bonds.

IMPACT OF THE FUNDS' LEVERAGE STRATEGIES ON PERFORMANCE

One important factor impacting the returns of most of these Funds relative to the comparative indexes was the Funds' use of financial leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total return for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when bond prices generally are rising.

Leverage made a positive contribution to the performance of these Funds over this reporting period.

RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE

Shortly after their inceptions, each of the Funds issued auction rate preferred shares (ARPS) to create financial leverage. As noted in past shareholder reports, the ARPS issued by many closed-end funds, including these Funds, have been hampered by a lack of liquidity since February 2008. Since that time, more ARPS have been submitted for sale in each of their regularly scheduled auctions than there have been offers to buy. In fact, offers to buy have been almost completely non-existent since late February 2008. This means that these auctions have "failed to clear," and that many, or all, of the ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. This lack of liquidity in ARPS did not lower the credit quality of these shares, and ARPS shareholders unable to sell their shares continued to receive distributions at the "maximum rate" applicable to failed auctions, as calculated in accordance with the pre-established terms of the ARPS. In the recent market, with short-term rates at multigenerational lows, those maximum rates also have been low.

One continuing implication for common shareholders from the auction failures is that each Fund's cost of leverage likely has been incrementally higher at times than it otherwise might have been had the auctions continued to be successful. As a result, each Fund's common share earnings likely have been incrementally lower at times than they otherwise might have been.

Nuveen Investments 7

As noted in past shareholder reports, the Nuveen funds' Board of Directors/Trustees authorized several methods to refinance a portion of the Nuveen funds' outstanding ARPS. Some funds have utilized tender option bonds (TOBs), also known as floating rate securities, for leverage purposes. The amount of TOBs that a fund may use varies according to the composition of each fund's portfolio. Some funds have a greater ability to use TOBs than others. Some funds have issued Variable Rate Demand Preferred (VRDP) Shares, but these issuances have been limited since it has been difficult to find liquidity providers on economically viable terms given the constrained credit environment. Some funds have issued MuniFund Term Preferred (MTP) Shares, a fixed rate form of preferred stock with a mandatory redemption period of five years.

While all these efforts have reduced the total amount of outstanding ARPS issued by the Nuveen funds, the funds cannot provide any assurance on when the remaining outstanding ARPS might be redeemed.

At the time this report was prepared, thirty Nuveen leveraged closed-end funds received a demand letter from a law firm on behalf of some common shareholders of each fund alleging that Nuveen and the fund's officers and Board of Directors/Trustees breached their fiduciary duties related to the redemption at par of the fund's ARPS. After an extensive independent review, on July 14, 2010, the Board of Directors/Trustees announced that each fund had rejected the demands contained in the letters. As a result, the Board of Directors/Trustees has resumed consideration of additional ARPS refinancing. Any future determinations by the Board of Directors/Trustees to refinance a specific fund's ARPS will continue to be based upon a review of the fund's specific circumstances, considering, among other factors, the availability and terms of potential alternative sources of leverage, the receipt of applicable ratings and other necessary approvals for such alternative sources of leverage, and overall market conditions.

As of May 31, 2010, the amount of ARPS redeemed by the Funds are as shown in the accompanying table.

 AUCTION RATE % OF ORIGINAL
 PREFERRED SHARES AUCTION RATE
FUND REDEEMED PREFERRED SHARES
--------------------------------------------------------------------------------
NPG $27,800,000 100.0%
NZX $15,000,000 100.0%
NKG $33,000,000 100.0%
NNC $25,250,000 54.0%
NRB $17,000,000 100.0%
NNO $28,000,000 100.0%
NII $28,000,000 100.0%
--------------------------------------------------------------------------------

8 Nuveen Investments

As of May 31, 2010, the Funds have issued and outstanding MTP Shares, at liquidation value, as shown in the accompanying table. (Refer to Notes to Financial Statements, Footnote 1 - General Information and Significant Accounting Policies and Footnote 4 - Fund Shares for further details on MTP

Shares.)

 MTP SHARES
FUND AT LIQUIDATION VALUE
--------------------------------------------------------------------------------
NPG $28,340,000
NZX $14,340,000
NKG $32,265,000
NNC $24,300,000
NRB $16,600,000
NNO $29,700,000
NII $28,725,000
--------------------------------------------------------------------------------

As of May 31, 2010, 83 out of the 84 Nuveen closed-end municipal funds that had issued ARPS have redeemed at par all or a portion of these shares. These redemptions bring the total amount of Nuveen's municipal closed-end funds' ARPS redemptions to approximately $4.4 billion of the approximately $11.0 billion originally outstanding. For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/arps.

Nuveen Investments 9

Common Share Dividend and Share Price Information

During the twelve-month reporting period ended May 31, 2010, NRB had three monthly dividend increases and NPG, NZX, NKG, NNC, NNO and NII each had two monthly dividend increases.

Due to normal portfolio activity, common shareholders of NNO received a long-term capital gains distribution of $0.0023 per share at the end of December 2009.

All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of May 31, 2010, all seven Funds in this report had positive UNII balances for both tax and financial reporting purposes.

COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION

Since the inception of the Funds' repurchase program, the Funds have not repurchased any of their outstanding common shares.

10 Nuveen Investments

As of May 31, 2010, the Funds' common share prices were trading at (+) premiums or (-) discounts to their common share NAVs as shown in the accompanying table.

 5/31/10 TWELVE-MONTH AVERAGE
FUND (+)PREMIUM/(-) DISCOUNT (+)PREMIUM/(-) DISCOUNT
--------------------------------------------------------------------------------
NPG -3.53% -6.24%
NZX +2.50% -2.20%
NKG -1.48% -6.17%
NNC +4.42% +0.71%
NRB +5.83% +4.54%
NNO +4.24% +1.54%
NII +7.53% +2.47%
--------------------------------------------------------------------------------

 Nuveen Investments 11

NPG Performance OVERVIEW | Nuveen Georgia Premium Income Municipal Fund as of May 31, 2010

FUND SNAPSHOT

Common Share Price $ 13.95
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.46
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -3.53%
--------------------------------------------------------------------------------
Market Yield 5.08%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.50%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 55,018
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.67
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.82
--------------------------------------------------------------------------------

AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
--------------------------------------------------------------------------------
 ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 21.21% 10.52%
--------------------------------------------------------------------------------
5-Year 1.48% 3.93%
--------------------------------------------------------------------------------
10-Year 6.65% 6.82%
--------------------------------------------------------------------------------

PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Health Care 17.8%
--------------------------------------------------------------------------------
Education and Civic Organizations 15.8%
--------------------------------------------------------------------------------
Water and Sewer 14.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 13.5%
--------------------------------------------------------------------------------
Tax Obligation/General 12.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 12.0%
--------------------------------------------------------------------------------
Utilities 6.6%
--------------------------------------------------------------------------------
Other 7.5%
--------------------------------------------------------------------------------

CREDIT QUALITY (as a % of total investments)(2)

[PIE CHART]

AAA/U.S.

Guaranteed 35%
AA 30%
A 25%
BBB 7%
N/R 3%

2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE

 [BAR CHART]

Jun $ 0.0525
Jul 0.0525
Aug 0.0525
Sep 0.055
Oct 0.055
Nov 0.055
Dec 0.059
Jan 0.059
Feb 0.059
Mar 0.059
Apr 0.059
May 0.059

COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE

 [LINE CHART]

6/01/09 $ 12.3
 12.5
 12.35
 12.1
 12.15
 12.55
 12.43
 12.45
 12.3
 12.84
 13.07
 13.05
 13
 13.26
 13.37
 13.4
 13.38
 13.3378
 13.494
 13.27
 12.91
 12.93
 12.92
 12.9
 12.72
 12.74
 12.74
 13.2
 13.15
 13
 13.56
 13.7
 13.4415
 13.41
 13.41
 13.79
 13.78
 14
 13.59
 13.65
 13.772
 13.8
 13.78
 13.73
 13.796
 13.88
 13.934
 13.9515
 14.25
 13.9
 13.92
 13.8
 13.95
5/31/10 13.95

(1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.3%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.

(2) Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies.

12 Nuveen Investments

NZX Performance OVERVIEW | Nuveen Georgia Dividend Advantage Municipal Fund as of May 31, 2010

CREDIT QUALITY (as a % of total investments)(2)

[PIE CHART]

AAA/U.S.

Guaranteed 35%
AA 26%
A 24%
BBB 8%
BB or Lower 1%
N/R 6%

2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE

 [BAR CHART]

Jun $ 0.056
Jul 0.056
Aug 0.056
Sep 0.061
Oct 0.061
Nov 0.061
Dec 0.064
Jan 0.064
Feb 0.064
Mar 0.064
Apr 0.064
May 0.064

COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE

 [LINE CHART]

6/01/09 $ 13.43
 13.24
 13.31
 12.6
 12.6
 13.23
 12.83
 12.9
 13.2
 13.5
 13.91
 13.65
 13.39
 13.45
 13.59
 14.2201
 14.2
 14.2
 14.08
 14.06
 13.62
 13.46
 14.04
 14
 13.962
 14.09
 14.48
 14.19
 14.2699
 14.35
 14.15
 14
 14.1601
 14.28
 14.531
 14.6
 14.865
 14.725
 14.502
 14.5
 14.83
 15.23
 15.084
 14.8474
 15.04
 15.1856
 14.96
 15.1499
 15.39
 15.3
 15.45
 14.76
 15.18
5/31/10 15.18

FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 15.18
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.81
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 2.50%
--------------------------------------------------------------------------------
Market Yield 5.06%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.47%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $29,179
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 13.49
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 6.53
--------------------------------------------------------------------------------

AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
--------------------------------------------------------------------------------
 ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 18.75% 11.41%
--------------------------------------------------------------------------------
5-Year 4.27% 4.50%
--------------------------------------------------------------------------------
Since
Inception 5.65% 5.92%
--------------------------------------------------------------------------------

PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 19.3%
--------------------------------------------------------------------------------
Health Care 18.3%
--------------------------------------------------------------------------------
U.S. Guaranteed 14.5%
--------------------------------------------------------------------------------
Water and Sewer 13.4%
--------------------------------------------------------------------------------
Tax Obligation/General 9.2%
--------------------------------------------------------------------------------
Housing/Single Family 8.4%
--------------------------------------------------------------------------------
Tax Obligation/Limited 6.9%
--------------------------------------------------------------------------------
Other 10.0%
--------------------------------------------------------------------------------

Nuveen Investments 13

NKG Performance OVERVIEW | Nuveen Georgia Dividend Advantage Municipal Fund 2 as of May 31, 2010

FUND SNAPSHOT

Common Share Price $ 14.00
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.21
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -1.48%
--------------------------------------------------------------------------------
Market Yield 5.14%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.59%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $64,721
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 16.16
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.54
--------------------------------------------------------------------------------

AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/02)
--------------------------------------------------------------------------------
 ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 24.23% 12.54%
--------------------------------------------------------------------------------
5-Year 4.89% 4.12%
--------------------------------------------------------------------------------
Since
Inception 4.39% 4.97%
--------------------------------------------------------------------------------

PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Water and Sewer 19.5%
--------------------------------------------------------------------------------
Health Care 18.9%
--------------------------------------------------------------------------------
Tax Obligation/General 17.8%
--------------------------------------------------------------------------------
Education and Civic Organizations 11.9%
--------------------------------------------------------------------------------
Tax Obligation/Limited 8.9%
--------------------------------------------------------------------------------
U.S. Guaranteed 7.0%
--------------------------------------------------------------------------------
Transportation 3.4%
--------------------------------------------------------------------------------
Other 12.6%
--------------------------------------------------------------------------------

CREDIT QUALITY (as a % of total investments)(2)

[PIE CHART]

AAA/U.S.

Guaranteed 34%
AA 29%
A 18%
BBB 9%
BB or Lower 1%
N/R 9%

2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE

 [BAR CHART]

Jun $ 0.053
Jul 0.053
Aug 0.053
Sep 0.058
Oct 0.058
Nov 0.058
Dec 0.06
Jan 0.06
Feb 0.06
Mar 0.06
Apr 0.06
May 0.06

COMMON SHARE PRICE PERFORMANCE - WEEKLY CLOSING PRICE

 [LINE CHART]

6/01/09 $ 11.88
 11.96
 11.62
 11.6499
 11.85
 11.888
 11.94
 11.8897
 11.88
 12.1572
 12.35
 12.35
 12.64
 12.7
 12.7001
 12.95
 13.052
 13.14
 13.163
 13.1
 12.55
 12.79
 12.89
 12.897
 12.71
 12.43
 12.7
 13.15
 12.95
 12.9
 12.7999
 12.98
 13.0465
 13.25
 13.44
 13.4
 13.33
 13.5
 13.22
 13.2
 14.19
 14.34
 13.45
 13.755
 13.86
 13.9
 13.64
 14
 14.65
 14.05
 13.98
 13.653
 14
5/31/10 14

14 Nuveen Investments

NNC Performance OVERVIEW | Nuveen North Carolina Premium Income Municipal Fund as of May 31, 2010

CREDIT QUALITY (as a % of total investments)(2)

[PIE CHART]

AAA/U.S.

Guaranteed 36%
AA 31%
A 28%
BBB 3%
N/R 2%

2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE

 [BAR CHART]

Jun $ 0.055
Jul 0.055
Aug 0.055
Sep 0.059
Oct 0.059
Nov 0.059
Dec 0.062
Jan 0.062
Feb 0.062
Mar 0.062
Apr 0.062
May 0.062

COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE

 [LINE CHART]

6/01/09 $ 12.66
 12.802
 12.64
 12.7295
 12.92
 13
 13.0701
 12.9999
 13.34
 13.26
 13.45
 13.59
 13.78
 13.93
 14.1366
 14.365
 14.61
 14.4
 14.67
 15.0495
 14.43
 14.6
 14.3
 14.76
 14.86
 14.6599
 14.79
 14.95
 15.15
 14.9
 14.69
 14.301
 14.26
 14.42
 14.48
 14.75
 14.995
 15.05
 14.91
 14.7817
 15.1076
 15.02
 14.9165
 14.9
 15.28
 15.38
 15.75
 15.7999
 15.43
 15
 15.39
 15.14
 15.37
5/31/10 15.37

FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 15.37
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.72
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 4.42%
--------------------------------------------------------------------------------
Market Yield 4.84%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.30%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $93,570
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 14.81
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.08
--------------------------------------------------------------------------------

AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
--------------------------------------------------------------------------------
 ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 28.20% 12.24%
--------------------------------------------------------------------------------
5-Year 2.83% 4.51%
--------------------------------------------------------------------------------
10-Year 6.55% 7.15%
--------------------------------------------------------------------------------

PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 25.9%
--------------------------------------------------------------------------------
Health Care 14.7%
--------------------------------------------------------------------------------
Education and Civic Organizations 14.1%
--------------------------------------------------------------------------------
Transportation 8.2%
--------------------------------------------------------------------------------
U.S. Guaranteed 7.7%
--------------------------------------------------------------------------------
Tax Obligation/General 7.7%
--------------------------------------------------------------------------------
Water and Sewer 7.0%
--------------------------------------------------------------------------------
Utilities 6.0%
--------------------------------------------------------------------------------
Other 8.7%
--------------------------------------------------------------------------------

(1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 33.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.

Nuveen Investments 15

NRB Performance OVERVIEW | Nuveen North Carolina Dividend Advantage Municipal Fund as of May 31, 2010

FUND SNAPSHOT

Common Share Price $ 16.15
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.26
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 5.83%
--------------------------------------------------------------------------------
Market Yield 5.20%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.84%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $34,617
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 14.20
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 6.47
--------------------------------------------------------------------------------

AVERAGE ANNUAL TOTAL RETURN
(Inception 1/25/01)
--------------------------------------------------------------------------------
 ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 19.40% 10.88%
--------------------------------------------------------------------------------
5-Year 3.88% 5.20%
--------------------------------------------------------------------------------
Since
Inception 6.38% 6.52%
--------------------------------------------------------------------------------

PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Water and Sewer 26.8%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.4%
--------------------------------------------------------------------------------
Health Care 11.6%
--------------------------------------------------------------------------------
Utilities 11.1%
--------------------------------------------------------------------------------
U.S. Guaranteed 8.3%
--------------------------------------------------------------------------------
Transportation 7.3%
--------------------------------------------------------------------------------
Education and Civic Organizations 7.1%
--------------------------------------------------------------------------------
Tax Obligation/General 7.0%
--------------------------------------------------------------------------------
Other 4.4%
--------------------------------------------------------------------------------

CREDIT QUALITY (as a % of total investments)(2)

[PIE CHART]

AAA/U.S.

Guaranteed 52%
AA 25%
A 16%
BBB 5%
N/R 2%

2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE

 [BAR CHART]

Jun $ 0.062
Jul 0.062
Aug 0.062
Sep 0.068
Oct 0.068
Nov 0.068
Dec 0.069
Jan 0.069
Feb 0.069
Mar 0.07
Apr 0.07
May 0.07

COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE

 [LINE CHART]

6/01/09 $ 14.2499
 14.08
 13.7901
 14.26
 14.46
 15.12
 14.5
 14.3
 14.45
 14.15
 14.769
 14.858
 14.94
 15.3999
 15.28
 15.3
 15.606
 15.78
 16.1501
 16.3
 16.5
 16.45
 15.23
 15.78
 15.22
 15.965
 15.8
 16.1693
 16.22
 15.75
 15.5564
 15.8999
 16.2
 16.15
 16.08
 16.1298
 15.789
 16
 15.85
 15.62
 15.73
 15.77
 16.3399
 16.54
 17
 16.3
 16.47
 16.6
 16.86
 16.823
 16.63
 16.1
 16.1534
5/31/10 16.1534

(1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 33.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.

16 Nuveen Investments

NNO Performance OVERVIEW | Nuveen North Carolina Dividend Advantage Municipal Fund 2 as of May 31, 2010

CREDIT QUALITY (as a % of total investments)(3)

[PIE CHART]

AAA/U.S.

Guaranteed 37%
AA 32%
A 23%
BBB 5%
N/R 3%

2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)

 [BAR CHART]

Jun $ 0.0585
Jul 0.0585
Aug 0.0585
Sep 0.064
Oct 0.064
Nov 0.064
Dec 0.068
Jan 0.068
Feb 0.068
Mar 0.068
Apr 0.068
May 0.068

COMMON SHARE PRICE PERFORMANCE - WEEKLY CLOSING PRICE

 [LINE CHART]

6/01/09 $ 13.57
 13.4391
 13.31
 13.3235
 13.3
 13.55
 13.7099
 13.75
 13.99
 14.04
 14.0622
 14.03
 14.34
 14.54
 14.845
 14.77
 15.3485
 15.1
 15
 15.12
 15.1
 14.9
 14.77
 15.45
 15.22
 15.24
 15.44
 15.33
 15.98
 15.1416
 14.95
 14.89
 15.36
 15.02
 15.02
 15.47
 15.5328
 15.5375
 15.5399
 15.16
 15.48
 15.4499
 15.69
 15.93
 16.28
 16.1
 17.04
 16.56
 16.52
 15.85
 16.2001
 15.75
 15.73
5/31/10 15.73

FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 15.73
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.09
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 4.24%
--------------------------------------------------------------------------------
Market Yield 5.19%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.83%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $56,590
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 13.72
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 6.88
--------------------------------------------------------------------------------

AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/01)
--------------------------------------------------------------------------------
 ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 21.86% 11.11%
--------------------------------------------------------------------------------
5-Year 4.71% 4.71%
--------------------------------------------------------------------------------
Since
Inception 6.17% 6.24%
--------------------------------------------------------------------------------

PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 22.7%
--------------------------------------------------------------------------------
Health Care 16.1%
--------------------------------------------------------------------------------
Water and Sewer 15.3%
--------------------------------------------------------------------------------
Transportation 13.8%
--------------------------------------------------------------------------------
Education and Civic Organizations 8.8%
--------------------------------------------------------------------------------
Utilities 6.8%
--------------------------------------------------------------------------------
Tax Obligation/General 6.2%
--------------------------------------------------------------------------------
U.S. Guaranteed 5.4%
--------------------------------------------------------------------------------
Other 4.9%
--------------------------------------------------------------------------------

(1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 33.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.

(2) The Fund paid shareholders a capital gains distribution in December 2009 of $0.0023 per share.

(3) Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies.

Nuveen Investments 17

NII Performance OVERVIEW | Nuveen North Carolina Dividend Advantage Municipal Fund 3 as of May 31, 2010

FUND SNAPSHOT

Common Share Price $ 15.86
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.75
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 7.53%
--------------------------------------------------------------------------------
Market Yield 4.99%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.53%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $58,054
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 13.93
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 6.46
--------------------------------------------------------------------------------

AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/02)
--------------------------------------------------------------------------------
 ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 22.76% 10.95%
--------------------------------------------------------------------------------
5-Year 5.65% 4.92%
--------------------------------------------------------------------------------
Since
Inception 5.91% 5.55%
--------------------------------------------------------------------------------

PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Water and Sewer 22.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 22.1%
--------------------------------------------------------------------------------
Utilities 12.1%
--------------------------------------------------------------------------------
U.S. Guaranteed 10.8%
--------------------------------------------------------------------------------
Tax Obligation/General 9.2%
--------------------------------------------------------------------------------
Transportation 7.9%
--------------------------------------------------------------------------------
Health Care 7.8%
--------------------------------------------------------------------------------
Other 7.8%
--------------------------------------------------------------------------------

CREDIT QUALITY (as a % of total investments)(2)

[PIE CHART]

AAA/U.S.

Guaranteed 42%
AA 32%
A 17%
BBB 7%
N/R 2%

2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE

 [BAR CHART]

Jun $ 0.0565
Jul 0.0565
Aug 0.0565
Sep 0.062
Oct 0.062
Nov 0.062
Dec 0.066
Jan 0.066
Feb 0.066
Mar 0.066
Apr 0.066
May 0.066

COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE

 [LINE CHART]

6/01/09 $ 13.5887
 13.44
 13.53
 13.46
 13.56
 13.83
 14.35
 13.5
 13.71
 13.63
 13.7999
 13.74
 14
 14.7401
 14.45
 14.3528
 14.5
 14.7901
 15.24
 14.9
 14.9
 14.8
 14.85
 14.7501
 14.68
 15.46
 15.25
 15.35
 15.5
 14.93
 15.245
 15.1167
 15
 14.95
 14.821
 14.89
 14.922
 15.0499
 15.05
 15.05
 15.26
 14.95
 14.9001
 14.9776
 15.2
 15.45
 15.7112
 15.978
 16.2599
 15.8
 16.015
 15.62
 15.86
5/31/10 15.86

(1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 33.7%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.

18 Nuveen Investments

NPG | Shareholder Meeting Report
NZX |
NKG |

The annual meeting of shareholders was held in the offices of Nuveen Investments on November 30, 2009; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies and the approval of new Fundamental Investment Policies. The meeting for NNC, NRB, NNO, NPG and NKG was subsequently adjourned to January 12, 2010; the meeting for NRB, NNO and NKG was additionally adjourned to March 23, 2010. The meeting for NRB and NNO was additionally adjourned to March 30, 2010.

 NPG NZX NKG
------------------------------------------------------------------------------------------------------------------------------------
 Common and Common and Common and
 Preferred Preferred Preferred Preferred Preferred Preferred
 shares voting shares voting shares voting shares voting shares voting shares voting
 together together together together together together
 as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S
FUNDAMENTAL POLICY RELATING TO
INVESTMENTS IN MUNICIPAL SECURITIES AND
BELOW INVESTMENT GRADE SECURITIES.
 For 1,741,008 554 -- -- 2,259,048 594
 Against 109,320 2 -- -- 101,183 30
 Abstain 36,269 -- -- -- 76,936 2
 Broker Non-Votes 390,366 -- -- -- 861,496 --
------------------------------------------------------------------------------------------------------------------------------------
 Total 2,276,963 556 -- -- 3,298,663 626
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES FOR THE FUND.
 For 1,743,799 554 -- -- 2,269,993 594
 Against 106,637 2 -- -- 96,748 30
 Abstain 36,161 -- -- -- 70,426 2
 Broker Non-Votes 390,366 -- -- -- 861,496 --
------------------------------------------------------------------------------------------------------------------------------------
 Total 2,276,963 556 -- -- 3,298,663 626
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY PROHIBITING
INVESTMENT IN OTHER INVESTMENT
COMPANIES.
 For 1,730,015 544 -- -- -- --
 Against 113,456 12 -- -- -- --
 Abstain 43,126 -- -- -- -- --
 Broker Non-Votes 390,366 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
 Total 2,276,963 556 -- -- -- --
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
DERIVATIVES AND SHORT SALES.
 For 1,722,085 544 -- -- -- --
 Against 128,200 12 -- -- -- --
 Abstain 36,312 -- -- -- -- --
 Broker Non-Votes 390,366 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
 Total 2,276,963 556 -- -- -- --
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
COMMODITIES.
 For 1,719,440 546 -- -- -- --
 Against 118,855 10 -- -- -- --
 Abstain 48,302 -- -- -- -- --
 Broker Non-Votes 390,366 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
 Total 2,276,963 556 -- -- -- --
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
 For 1,716,239 546 -- -- -- --
 Against 127,166 10 -- -- -- --
 Abstain 43,192 -- -- -- -- --
 Broker Non-Votes 390,366 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
 Total 2,276,963 556 -- -- -- --
====================================================================================================================================

Nuveen Investments 19

NPG | Shareholder Meeting Report (continued)
NZX |
NKG |

 NPG NZX NKG
------------------------------------------------------------------------------------------------------------------------------------
 Common and Common and Common and
 Preferred Preferred Preferred Preferred Preferred Preferred
 shares voting shares voting shares voting shares voting shares voting shares voting
 together together together together together together
 as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
Robert P. Bremner
 For 2,157,036 -- 1,634,661 -- 3,187,250 --
 Withhold 119,927 -- 29,303 -- 103,417 --
------------------------------------------------------------------------------------------------------------------------------------
 Total 2,276,963 -- 1,663,964 -- 3,290,667 --
====================================================================================================================================
Jack B. Evans
 For 2,157,986 -- 1,636,936 -- 3,186,450 --
 Withhold 118,977 -- 27,028 -- 104,217 --
------------------------------------------------------------------------------------------------------------------------------------
 Total 2,276,963 -- 1,663,964 -- 3,290,667 --
====================================================================================================================================
William C. Hunter
 For -- 534 -- 242 -- 454
 Withhold -- 22 -- 22 -- 65
------------------------------------------------------------------------------------------------------------------------------------
 Total -- 556 -- 264 -- 519
====================================================================================================================================
William J. Schneider
 For -- 534 -- 242 -- 454
 Withhold -- 22 -- 22 -- 65
------------------------------------------------------------------------------------------------------------------------------------
 Total -- 556 -- 264 -- 519
====================================================================================================================================

20 Nuveen Investments

NNC |
NRB |
NNO |

 NNC NRB NNO
------------------------------------------------------------------------------------------------------------------------------------
 Common and Common and Common and
 Preferred Preferred Preferred Preferred Preferred Preferred
 shares voting shares voting shares voting shares voting shares voting shares voting
 together together together together together together
 as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE
FUND'S FUNDAMENTAL POLICY RELATING TO
INVESTMENTS IN MUNICIPAL SECURITIES AND
BELOW INVESTMENT GRADE SECURITIES.
 For -- -- 1,237,586 161 2,005,807 288
 Against -- -- 46,435 3 71,936 3
 Abstain -- -- 66,364 -- 135,658 --
 Broker Non-Votes -- -- 220,586 180 419,427 210
-----------------------------------------------------------------------------------------------------------------------------------
 Total -- -- 1,570,971 344 2,632,828 501
===================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES FOR THE FUND.
 For -- -- 1,255,314 161 2,007,290 288
 Against -- -- 43,410 3 67,892 1
 Abstain -- -- 51,661 -- 138,219 2
 Broker Non-Votes -- -- 220,586 180 419,427 210
-----------------------------------------------------------------------------------------------------------------------------------
 Total -- -- 1,570,971 344 2,632,828 501
===================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY PROHIBITING
INVESTMENT IN OTHER INVESTMENT
COMPANIES.
 For -- -- -- -- -- --
 Against -- -- -- -- -- --
 Abstain -- -- -- -- -- --
 Broker Non-Votes -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
 Total -- -- -- -- -- --
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
DERIVATIVES AND SHORT SALES.
 For -- -- -- -- -- --
 Against -- -- -- -- -- --
 Abstain -- -- -- -- -- --
 Broker Non-Votes -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
 Total -- -- -- -- -- --
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
COMMODITIES.
 For -- -- -- -- -- --
 Against -- -- -- -- -- --
 Abstain -- -- -- -- -- --
 Broker Non-Votes -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
 Total -- -- -- -- -- --
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
 For -- -- -- -- -- --
 Against -- -- -- -- -- --
 Abstain -- -- -- -- -- --
 Broker Non-Votes -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
 Total -- -- -- -- -- --
====================================================================================================================================

Nuveen Investments 21

NNC | Shareholder Meeting Report (continued)
NRB |
NNO |

 NNC NRB NNO
------------------------------------------------------------------------------------------------------------------------------------
 Common and Common and Common and
 Preferred Preferred Preferred Preferred Preferred Preferred
 shares voting shares voting shares voting shares voting shares voting shares voting
 together together together together together together
 as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
Robert P. Bremner
 For 5,555,532 -- 1,500,149 -- 2,440,165 --
 Withhold 163,794 -- 70,495 -- 191,136 --
------------------------------------------------------------------------------------------------------------------------------------
 Total 5,719,326 -- 1,570,644 -- 2,631,301 --
====================================================================================================================================
Jack B. Evans
 For 5,550,847 -- 1,501,149 -- 2,433,951 --
 Withhold 168,479 -- 69,495 -- 197,350 --
------------------------------------------------------------------------------------------------------------------------------------
 Total 5,719,326 -- 1,570,644 -- 2,631,301 --
====================================================================================================================================
William C. Hunter
 For -- 651 -- 295 -- 409
 Withhold -- 54 -- 22 -- 40
------------------------------------------------------------------------------------------------------------------------------------
 Total -- 705 -- 317 -- 449
====================================================================================================================================
William J. Schneider
 For -- 651 -- 295 -- 394
 Withhold -- 54 -- 22 -- 55
------------------------------------------------------------------------------------------------------------------------------------
 Total -- 705 -- 317 -- 449
====================================================================================================================================

22 Nuveen Investments

NII |

NII

 Common and
 Preferred Preferred
 shares voting shares voting
 together together
 as a class as a class
--------------------------------------------------------------------------------

TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES.

 For -- --
 Against -- --
 Abstain -- --
 Broker Non-Votes -- --
--------------------------------------------------------------------------------
 Total -- --
================================================================================

TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND.

 For -- --
 Against -- --
 Abstain -- --
 Broker Non-Votes -- --
--------------------------------------------------------------------------------
 Total -- --
================================================================================

TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY PROHIBITING INVESTMENT IN OTHER
INVESTMENT COMPANIES.

 For -- --
 Against -- --
 Abstain -- --
 Broker Non-Votes -- --
--------------------------------------------------------------------------------
 Total -- --
================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY RELATING TO DERIVATIVES AND SHORT SALES.
 For -- --
 Against -- --
 Abstain -- --
 Broker Non-Votes -- --
--------------------------------------------------------------------------------
 Total -- --
================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY RELATING TO COMMODITIES.
 For -- --
 Against -- --
 Abstain -- --
 Broker Non-Votes -- --
--------------------------------------------------------------------------------
 Total -- --
================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING
TO COMMODITIES.
 For -- --
 Against -- --
 Abstain -- --
 Broker Non-Votes -- --
--------------------------------------------------------------------------------
 Total -- --
================================================================================

Nuveen Investments 23

NII | Shareholder Meeting Report (continued)

NII

 Common and
 Preferred Preferred
 shares voting shares voting
 together together
 as a class as a class
--------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS
FOLLOWS:
Robert P. Bremner
 For 3,552,027 --
 Withhold 173,793 --
--------------------------------------------------------------------------------
 Total 3,725,820 --
================================================================================
Jack B. Evans
 For 3,550,401 --
 Withhold 175,419 --
--------------------------------------------------------------------------------
 Total 3,725,820 --
================================================================================
William C. Hunter
 For -- 413
 Withhold -- 39
--------------------------------------------------------------------------------
 Total -- 452
================================================================================
William J. Schneider
 For -- 413
 Withhold -- 39
--------------------------------------------------------------------------------
 Total -- 452
================================================================================

24 Nuveen Investments

Report of Independent
Registered Public Accounting Firm

THE BOARD OF TRUSTEES AND SHAREHOLDERS
NUVEEN GEORGIA PREMIUM INCOME MUNICIPAL FUND NUVEEN GEORGIA DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN GEORGIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NUVEEN NORTH CAROLINA PREMIUM INCOME MUNICIPAL FUND NUVEEN NORTH CAROLINA DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN NORTH CAROLINA DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NUVEEN NORTH CAROLINA DIVIDEND ADVANTAGE MUNICIPAL FUND 3

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Georgia Premium Income Municipal Fund, Nuveen Georgia Dividend Advantage Municipal Fund, Nuveen Georgia Dividend Advantage Municipal Fund 2, Nuveen North Carolina Premium Income Municipal Fund, Nuveen North Carolina Dividend Advantage Municipal Fund, Nuveen North Carolina Dividend Advantage Municipal Fund 2, and Nuveen North Carolina Dividend Advantage Municipal Fund 3 (the "Funds"), as of May 31, 2010, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of May 31, 2010, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Georgia Premium Income Municipal Fund, Nuveen Georgia Dividend Advantage Municipal Fund, Nuveen Georgia Dividend Advantage Municipal Fund 2, Nuveen North Carolina Premium Income Municipal Fund, Nuveen North Carolina Dividend Advantage Municipal Fund, Nuveen North Carolina Dividend Advantage Municipal Fund 2, and Nuveen North Carolina Dividend Advantage Municipal Fund 3 at May 31, 2010, the results of their operations and cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with U.S. generally accepted accounting principles.

ERNST & YOUNG LLP

Chicago, Illinois
July 27, 2010

Nuveen Investments 25

NPG | Nuveen Georgia Premium Income Municipal Fund | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 CONSUMER STAPLES - 1.6% (1.0% OF TOTAL INVESTMENTS)
$ 1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 873,760
 Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
 EDUCATION AND CIVIC ORGANIZATIONS - 23.8% (15.8% OF TOTAL
 INVESTMENTS)
 750 Athens Housing Authority, Georgia, Student Housing Lease 6/19 at 100.00 Aa2 799,448
 Revenue Bonds, UGAREF East Campus Housing LLC Project,
 Series 2009, 5.250%, 6/15/35
 1,000 Athens-Clarke County Unified Government Development 12/12 at 100.00 N/R 1,035,960
 Authority, Georgia, Educational Facilities Revenue Bonds,
 UGAREF CCRC Building LLC Project, Series 2002, 5.000%,
 12/15/16 - AMBAC Insured
 2,800 Atlanta Development Authority, Georgia, Educational 7/17 at 100.00 A1 2,834,888
 Facilities Revenue Bonds, Science Park LLC Project, Series
 2007, 5.000%, 7/01/39
 1,550 Bulloch County Development Authority, Georgia, Student 8/14 at 100.00 A1 1,635,188
 Housing and Athletic Facility Lease Revenue Bonds, Georgia
 Southern University, Series 2004, 5.250%, 8/01/21 -
 SYNCORA GTY Insured
 700 Carrollton Payroll Development Authority, Georgia, Student 9/14 at 100.00 A1 730,653
 Housing Revenue Bonds, University of West Georgia, Series
 2004A, 5.000%, 9/01/21 - SYNCORA GTY Insured
 1,535 Fulton County Development Authority, Georgia, Revenue Bonds, 5/14 at 100.00 Aa3 1,724,496
 Georgia Tech Molecular Science Building, Series 2004,
 5.250%, 5/01/15 - NPFG Insured
 150 Georgia Higher Education Facilities Authority, Revenue Bonds, 6/18 at 100.00 A2 167,405
 USG Real Estate Foundation I LLC Project, Series 2008,
 6.000%, 6/15/28
 Private Colleges and Universities Authority, Georgia, Revenue
 Bonds, Emory University, Series 2009B, Trust 3404:
 270 16.758%, 9/01/32 (IF) 9/19 at 100.00 AA 354,116
 430 16.785%, 9/01/35 (IF) 9/19 at 100.00 AA 546,109
 1,180 Savannah Economic Development Authority, Georgia, Revenue 7/15 at 100.00 A2 1,226,114
 Bonds, Armstrong Atlantic State University, Compass Point
 LLC Project, Series 2005, 5.000%, 7/01/25 - SYNCORA GTY
 Insured
 1,490 Savannah Economic Development Authority, Georgia, Revenue 12/15 at 100.00 A3 1,514,362
 Bonds, Armstrong Center LLC, Series 2005A, 5.000%,
 12/01/34 - SYNCORA GTY Insured
 500 Savannah Economic Development Authority, Georgia, Revenue 7/12 at 100.00 Aa3 512,595
 Bonds, GTREP Project, Series 2002, 5.000%, 7/01/22 - NPFG
 Insured
------------------------------------------------------------------------------------------------------------------------------------
 12,355 Total Education and Civic Organizations 13,081,334
------------------------------------------------------------------------------------------------------------------------------------
 HEALTH CARE - 26.9% (17.8% OF TOTAL INVESTMENTS)
 500 Clark County Hospital Authority, Georgia, Hospital Revenue 1/17 at 100.00 Aa1 517,275
 Bonds, Athens Regional Medical Center, Series 2007,
 5.000%, 1/01/27 - NPFG Insured
 2,000 Clarke County Hospital Authority, Georgia, Hospital Revenue 1/12 at 101.00 Aa1 2,021,880
 Certificates, Athens Regional Medical Center, Series 2002,
 5.125%, 1/01/32 - NPFG Insured
 900 Coffee County Hospital Authority, Georgia, Revenue Bonds, 12/14 at 100.00 BBB- 899,181
 Coffee County Regional Medical Center, Series 2004,
 5.250%, 12/01/22
 3,000 Floyd County Hospital Authority, Georgia, Revenue 7/12 at 101.00 Aa2 3,058,440
 Anticipation Certificates, Floyd Medical Center Project,
 Series 2002, 5.200%, 7/01/32 - NPFG Insured
 1,090 Floyd County Hospital Authority, Georgia, Revenue 7/13 at 101.00 Aa2 1,138,778
 Anticipation Certificates, Floyd Medical Center, Series
 2003, 5.000%, 7/01/19 - NPFG Insured
 Gainesville and Hall County Hospital Authority, Georgia,
 Revenue Anticipation Certificates, Northeast Georgia Health
 Services Inc., Series 2010B:
 300 5.125%, 2/15/40 No Opt. Call A+ 293,481
 1,700 5.250%, 2/15/45 2/41 at 100.00 A+ 1,662,668
 1,060 Henry County Hospital Authority, Georgia, Revenue 7/14 at 101.00 Aa1 1,109,852
 Certificates, Henry Medical Center, Series 2004, 5.000%,
 7/01/20 - NPFG Insured
 900 Houston County Hospital Authority, Georgia, Revenue Bonds, 10/17 at 100.00 A2 896,184
 Houston Healthcare Project, Series 2007, 5.250%, 10/01/35
 225 Macon-Bibb County Hospital Authority, Georgia, Revenue 8/19 at 100.00 AA 226,798
 Anticipation Certificates, Medical Center of Central
 Georgia Inc., Series 2009, 5.000%, 8/01/35

26 Nuveen Investments

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 HEALTH CARE (continued)
$ 400 Medical Center Hospital Authority, Georgia, Revenue 8/11 at 100.00 A $ 409,048
 Anticipation Certificates, Columbus Regional Healthcare
 System, Inc. Project, Series 1999, 6.100%, 8/01/14 - NPFG
 Insured
 770 Royston Hospital Authority, Georgia, Revenue Anticipation 7/11 at 100.00 N/R 771,101
 Certificates, Ty Cobb Healthcare System Inc., Series 1999,
 6.700%, 7/01/16
 1,000 Savannah Hospital Authority, Georgia, Revenue Bonds, St. 1/14 at 100.00 Baa1 993,410
 Joseph's/Candler Health System, Series 2003, 5.250%,
 7/01/23 - RAAI Insured
 800 Valdosta and Lowndes County Hospital Authority, Georgia, 10/17 at 100.00 A+ 779,512
 Revenue Certificates, South Georgia Medical Center, Series
 2007, 5.000%, 10/01/33
------------------------------------------------------------------------------------------------------------------------------------
 14,645 Total Health Care 14,777,608
------------------------------------------------------------------------------------------------------------------------------------
 HOUSING/MULTIFAMILY - 1.6% (1.1% OF TOTAL INVESTMENTS)
 1,000 Cobb County Development Authority, Georgia, Student Housing 7/17 at 100.00 Baa2 903,630
 Revenue Bonds, KSU Village II Real Estate Foundation LLC
 Project, Series 2007A, 5.250%, 7/15/38 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
 HOUSING/SINGLE FAMILY - 1.6% (1.1% OF TOTAL INVESTMENTS)
 900 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 910,116
 Bonds, Series 2002B-2, 5.350%, 12/01/22 (Alternative
 Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
 MATERIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
 1,000 Richmond County Development Authority, Georgia, Environmental 2/11 at 101.00 BBB 1,011,640
 Improvement Revenue Bonds, International Paper Company,
 Series 2001A, 6.250%, 2/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/GENERAL - 18.9% (12.5% OF TOTAL INVESTMENTS)
 540 Cherokee County Resource Recovery Development Authority, 7/17 at 100.00 AA+ 536,015
 Georgia, Solid Waste Disposal Revenue Bonds, Ball Ground
 Recycling LLC Project, Series 2007A, 5.000%, 7/01/37 -
 AMBAC Insured (Alternative Minimum Tax)
 2,215 Decatur, Georgia, General Obligation Bonds, Series 2007, 1/17 at 100.00 AAA 2,370,626
 5.000%, 1/01/31 - AGM Insured
 905 Georgia Municipal Association Inc., Certificates of 5/19 at 100.00 AAA 959,237
 Participation, Riverdale Public Purpose Project, Series
 2009, 5.375%, 5/01/32 - AGC Insured
 100 Georgia State, General Obligation Bonds, Series 2007E, 8/17 at 100.00 AAA 111,474
 5.000%, 8/01/24
 210 Georgia State, General Obligation Bonds, Series 2009B, 1/19 at 100.00 AAA 235,427
 5.000%, 1/01/26
 1,000 Georgia, General Obligation Bonds, Series 2005B, 5.000%, No Opt. Call AAA 1,166,400
 7/01/15
 1,800 Gwinnett County School District, Georgia, General Obligation 2/18 at 100.00 AAA 1,916,010
 Bonds, Series 2008, 5.000%, 2/01/36 (UB)
 2,500 Paulding County School District, Georgia, General Obligation 2/17 at 100.00 AA+ 2,600,450
 Bonds, Series 2007, 5.000%, 2/01/33
 500 Wayne County Hospital Authority, Georgia, Hospital Revenue 3/16 at 100.00 N/R 480,930
 Bonds, Series 2006, 5.000%, 3/01/23 - SYNCORA GTY Insured
------------------------------------------------------------------------------------------------------------------------------------
 9,770 Total Tax Obligation/General 10,376,569
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/LIMITED - 20.4% (13.5% OF TOTAL INVESTMENTS)
 Atlanta, Georgia, Tax Allocation Bonds Atlanta Station
 Project, Series 2007:
 70 5.250%, 12/01/19 No Opt. Call AAA 76,504
 420 5.000%, 12/01/23 - AGC Insured 12/17 at 100.00 AAA 438,476
 225 Atlanta, Georgia, Tax Allocation Bonds, Eastside Project, No Opt. Call A- 242,327
 Series 2005A, 5.625%, 1/01/16 (Alternative Minimum Tax)
 50 Atlanta, Georgia, Tax Allocation Bonds, Eastside Project, 7/15 at 100.00 A- 51,480
 Series 2005B, 5.400%, 1/01/20
 2,000 Cobb-Marietta Coliseum and Exhibit Hall Authority, Cobb 1/14 at 100.00 AAA 2,187,980
 County, Georgia, Revenue Bonds, Performing Arts Center,
 Series 2004, 5.000%, 1/01/22
 3,860 Cobb-Marietta Coliseum and Exhibit Hall Authority, Georgia, 10/19 at 100.00 A 4,180,998
 Revenue Refunding Bonds, Series 1993, 5.625%, 10/01/26 -
 NPFG Insured
 2,600 Macon-Bibb County Urban Development Authority, Georgia, 8/12 at 101.00 AA 2,850,068
 Revenue Refunding Bonds, Public Facilities Projects,
 Series 2002A, 5.375%, 8/01/17
 1,000 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales No Opt. Call Aa2 1,200,940
 Tax Revenue Refunding Bonds, Series 1992P, 6.250%, 7/01/20
 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
 10,225 Total Tax Obligation/Limited 11,228,773
------------------------------------------------------------------------------------------------------------------------------------

Nuveen Investments 27

NPG | Nuveen Georgia Premium Income Municipal Fund (continued) | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 TRANSPORTATION - 4.7% (3.1% OF TOTAL INVESTMENTS)
$ 215 Atlanta, Georgia, Airport General Revenue Bonds, Series 7/10 at 101.00 A+ $ 216,677
 2000B, 5.625%, 1/01/30 - FGIC Insured (Alternative Minimum
 Tax)
 2,290 Atlanta, Georgia, Airport General Revenue Bonds, Series 1/15 at 100.00 AAA 2,384,142
 2004G, 5.000%, 1/01/26 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
 2,505 Total Transportation 2,600,819
------------------------------------------------------------------------------------------------------------------------------------
 U.S. GUARANTEED - 18.1% (12.0% OF TOTAL INVESTMENTS) (4)
 735 Coweta County Development Authority, Georgia, Revenue Bonds, 1/13 at 100.00 N/R (4) 816,012
 Newnan Water and Sewer, and Light Commission Project,
 Series 2002, 5.250%, 1/01/18 (Pre-refunded 1/01/13) - FGIC
 Insured
 2,665 Coweta County Water and Sewer Authority, Georgia, Revenue 6/11 at 102.00 AAA 2,846,646
 Bonds, Series 2001, 5.250%, 6/01/26 (Pre-refunded 6/01/11)
 500 DeKalb County, Georgia, Water and Sewerage Revenue Bonds, 10/10 at 101.00 AAA 513,110
 Series 2000, 5.125%, 10/01/31 (Pre-refunded 10/01/10)
 1,750 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 N/R (4) 1,832,040
 Revenue Anticipation Certificates, Northeast Georgia
 Health Services Inc., Series 2001, 5.500%, 5/15/31
 (Pre-refunded 5/15/11)
 25 Georgia Municipal Electric Authority, Senior Lien General 1/17 at 100.00 A+ (4) 28,505
 Power Revenue Bonds, Series 1993Z, 5.500%, 1/01/20
 (Pre-refunded 1/01/17) - FGIC Insured
 1,000 Georgia, General Obligation Bonds, Series 2002D, 5.000%, 8/12 at 100.00 AAA 1,093,880
 8/01/16 (Pre-refunded 8/01/12)
 2,550 Gwinnett County Hospital Authority, Georgia, Revenue 2/12 at 102.00 Aaa 2,803,241
 Anticipation Certificates, Gwinnett Hospital System Inc.
 Project, Series 1997B, 5.300%, 9/01/27 (Pre-refunded
 2/14/12) - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
 9,225 Total U.S. Guaranteed 9,933,434
------------------------------------------------------------------------------------------------------------------------------------
 UTILITIES - 9.9% (6.6% OF TOTAL INVESTMENTS)
 1,000 Georgia Municipal Electric Authority, General Power Revenue 1/17 at 100.00 A 1,050,310
 Bonds, Project 1, Series 2007A, 5.000%, 1/01/25 - NPFG
 Insured
 975 Georgia Municipal Electric Authority, Senior Lien General No Opt. Call A+ 1,094,896
 Power Revenue Bonds, Series 1993Z, 5.500%, 1/01/20 - FGIC
 Insured
 1,000 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 A1 1,068,920
 Revenue Bonds, Series 2003A, 5.000%, 11/01/20 - NPFG
 Insured
 1,000 Municipal Electric Authority of Georgia, Project One 1/13 at 100.00 A 1,040,910
 Subordinated Lien Revenue Bonds, Series 2003A, 5.000%,
 1/01/22 - NPFG Insured
 1,200 Virgin Islands Water and Power Authority, Electric System 7/17 at 100.00 BBB- 1,205,640
 Revenue Bonds, Series 2007B, 5.000%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
 5,175 Total Utilities 5,460,676
------------------------------------------------------------------------------------------------------------------------------------
 WATER AND SEWER - 21.6% (14.3% OF TOTAL INVESTMENTS)
 1,225 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 1,265,156
 2004, 5.000%, 11/01/24 - AGM Insured
 2,490 Cherokee County Water and Sewerage Authority, Georgia, 8/18 at 100.00 AAA 2,610,665
 Revenue Bonds, Series 2001, 5.000%, 8/01/35 - AGM Insured
 335 Coweta County Water and Sewer Authority, Georgia, Revenue 6/11 at 102.00 AAA 351,753
 Bonds, Series 2001, 5.250%, 6/01/26
 Coweta County Water and Sewer Authority, Georgia, Revenue
 Bonds, Series 2007:
 500 5.000%, 6/01/32 6/18 at 100.00 Aa2 525,230
 150 5.000%, 6/01/37 6/18 at 100.00 Aa2 156,225
 890 Douglasville-Douglas County Water and Sewer Authority, 6/17 at 100.00 Aa2 924,897
 Georgia, Water and Sewer Revenue Bonds, Series 2007,
 5.000%, 6/01/37 - NPFG Insured
 750 Forsyth County Water and Sewerage Authority, Georgia, Revenue 4/17 at 100.00 AAA 777,187
 Bonds, Series 2007, 5.000%, 4/01/37 - AGM Insured
 1,950 Fulton County, Georgia, Water and Sewerage Revenue Bonds, 1/14 at 100.00 Aa2 2,054,597
 Series 2004, 5.000%, 1/01/22 - FGIC Insured
 1,000 Midgeville, Georgia, Water and Sewerage Revenue Refunding No Opt. Call AAA 1,202,089
 Bonds, Series 1996, 6.000%, 12/01/21 - AGM Insured
 1,000 Unified Government of Athens-Clarke County, Georgia, Water 1/19 at 100.00 Aa2 1,087,649
 and Sewerage Revenue Bonds, Series 2008, 5.500%, 1/01/38

28 Nuveen Investments

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 WATER AND SEWER (continued)
$ 890 Walton County Water and Sewerage Authority, Georgia, Revenue 2/18 at 100.00 Aa2 $ 922,057
 Bonds, The Oconee-Hard Creek Reservoir Project, Series
 2008, 5.000%, 2/01/38 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
 11,180 Total Water and Sewer 11,877,505
------------------------------------------------------------------------------------------------------------------------------------
$ 78,980 Total Investments (cost $79,615,332) - 150.9% 83,035,864
===============---------------------------------------------------------------------------------------------------------------------
 Floating Rate Obligations - (2.2)% (1,190,000)
 ------------------------------------------------------------------------------------------------------------------
 MuniFund Term Preferred Shares, at Liquidation Value - (51.5%) (5) (28,340,000)
 ------------------------------------------------------------------------------------------------------------------
 Other Assets Less Liabilities - 2.8% 1,512,090
 ------------------------------------------------------------------------------------------------------------------
 Net Assets Applicable to Common Shares - 100% $ 55,017,954
 ==================================================================================================================

(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 (not covered by the report of independent
 registered public accounting firm): 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 (not covered by the report of independent registered public
 accounting firm): 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.

(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 34.1%.

N/R Not rated.

(IF) Inverse floating rate investment.

(UB) Underlying bond of an inverse floating rate trust reflected as a financing
 transaction. See Notes to Financial Statements, Footnote 1 - Inverse
 Floating Rate Securities for more information.

See accompanying notes to financial statements.

Nuveen Investments 29

NZX | Nuveen Georgia Dividend Advantage Municipal Fund | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 EDUCATION AND CIVIC ORGANIZATIONS - 28.8% (19.3% OF TOTAL
 INVESTMENTS)
$ 1,000 Athens Housing Authority, Georgia, Student Housing Lease 12/12 at 100.00 Aa2 $ 1,100,510
 Revenue Bonds, UGAREF East Campus Housing LLC Project,
 Series 2002, 5.250%, 12/01/21 - AMBAC Insured
 500 Athens Housing Authority, Georgia, Student Housing Lease 6/19 at 100.00 Aa2 532,965
 Revenue Bonds, UGAREF East Campus Housing LLC Project,
 Series 2009, 5.250%, 6/15/35
 1,200 Atlanta Development Authority, Georgia, Educational 7/17 at 100.00 A1 1,214,952
 Facilities Revenue Bonds, Science Park LLC Project, Series
 2007, 5.000%, 7/01/39
 1,475 Bulloch County Development Authority, Georgia, Student 8/14 at 100.00 A1 1,562,674
 Housing and Athletic Facility Lease Revenue Bonds, Georgia
 Southern University, Series 2004, 5.250%, 8/01/20 -
 SYNCORA GTY Insured
 1,620 Bulloch County Development Authority, Georgia, Student 8/12 at 100.00 A1 1,708,160
 Housing Lease Revenue Bonds, Georgia Southern University,
 Series 2002, 5.000%, 8/01/20 - AMBAC Insured
 1,000 Fulton County Development Authority, Georgia, Revenue Bonds, 4/12 at 100.00 N/R 1,018,460
 Georgia Tech Athletic Association, Series 2001, 5.000%,
 10/01/20 - AMBAC Insured
 Private Colleges and Universities Authority, Georgia, Revenue
 Bonds, Emory University, Series 2009B, Trust 3404:
 145 16.758%, 9/01/32 (IF) 9/19 at 100.00 AA 190,173
 230 16.785%, 9/01/35 (IF) 9/19 at 100.00 AA 292,105
 750 Savannah Economic Development Authority, Georgia, Revenue 7/12 at 100.00 Aa3 774,773
 Bonds, GTREP Project, Series 2002, 5.000%, 7/01/19 - NPFG
 Insured
------------------------------------------------------------------------------------------------------------------------------------
 7,920 Total Education and Civic Organizations 8,394,772
------------------------------------------------------------------------------------------------------------------------------------
 ENERGY - 2.0% (1.4% OF TOTAL INVESTMENTS)
 650 Virgin Islands Public Finance Authority, Revenue Bonds, 1/15 at 100.00 Baa3 598,488
 Refinery Project Hovensa LLC, Series 2007, 4.700%, 7/01/22
 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
 HEALTH CARE - 27.2% (18.3% OF TOTAL INVESTMENTS)
 150 Baldwin County Hospital Authority, Georgia, Revenue Bonds, 6/10 at 100.00 BB+ 150,023
 Oconee Regional Medical Center, Series 1997, 5.250%,
 12/01/12
 190 Baldwin County Hospital Authority, Georgia, Revenue Bonds, 6/10 at 101.00 BB+ 159,482
 Oconee Regional Medical Center, Series 1998, 5.375%,
 12/01/28
 500 Clark County Hospital Authority, Georgia, Hospital Revenue 1/17 at 100.00 Aa1 517,275
 Bonds, Athens Regional Medical Center, Series 2007,
 5.000%, 1/01/27 - NPFG Insured
 1,000 Clarke County Hospital Authority, Georgia, Hospital Revenue 1/12 at 101.00 Aa1 1,033,800
 Certificates, Athens Regional Medical Center, Series 2002,
 5.375%, 1/01/19 - NPFG Insured
 500 Coffee County Hospital Authority, Georgia, Revenue Bonds, 12/14 at 100.00 BBB- 499,545
 Coffee County Regional Medical Center, Series 2004,
 5.250%, 12/01/22
 600 Gainesville and Hall County Hospital Authority, Georgia, 2/41 at 100.00 A+ 586,824
 Revenue Anticipation Certificates, Northeast Georgia
 Health Services Inc., Series 2010B, 5.250%, 2/15/45
 500 Henry County Hospital Authority, Georgia, Revenue 7/14 at 101.00 Aa1 523,515
 Certificates, Henry Medical Center, Series 2004, 5.000%,
 7/01/20 - NPFG Insured
 500 Houston County Hospital Authority, Georgia, Revenue Bonds, 10/17 at 100.00 A2 497,880
 Houston Healthcare Project, Series 2007, 5.250%, 10/01/35
 300 Macon-Bibb County Hospital Authority, Georgia, Revenue 8/19 at 100.00 AA 302,397
 Anticipation Certificates, Medical Center of Central
 Georgia Inc., Series 2009, 5.000%, 8/01/35
 Royston Hospital Authority, Georgia, Revenue Anticipation
 Certificates, Ty Cobb Healthcare System Inc., Series 1999:
 200 6.700%, 7/01/16 7/11 at 100.00 N/R 200,286
 250 6.500%, 7/01/27 7/10 at 101.00 N/R 230,855
 500 Savannah Hospital Authority, Georgia, Revenue Bonds, St. 1/14 at 100.00 Baa1 496,705
 Joseph's/Candler Health System, Series 2003, 5.250%,
 7/01/23 - RAAI Insured

30 Nuveen Investments

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 HEALTH CARE (continued)
$ 2,000 Valdosta and Lowndes County Hospital Authority, Georgia, 10/12 at 101.00 A+ $ 2,012,620
 Revenue Certificates, South Georgia Medical Center, Series
 2002, 5.250%, 10/01/27 - AMBAC Insured
 750 Valdosta and Lowndes County Hospital Authority, Georgia, 10/17 at 100.00 A+ 730,793
 Revenue Certificates, South Georgia Medical Center, Series
 2007, 5.000%, 10/01/33
------------------------------------------------------------------------------------------------------------------------------------
 7,940 Total Health Care 7,942,000
------------------------------------------------------------------------------------------------------------------------------------
 HOUSING/MULTIFAMILY - 1.1% (0.7% OF TOTAL INVESTMENTS)
 350 Cobb County Development Authority, Georgia, Student Housing 7/17 at 100.00 Baa2 316,271
 Revenue Bonds, KSU Village II Real Estate Foundation LLC
 Project, Series 2007A, 5.250%, 7/15/38 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
 HOUSING/SINGLE FAMILY - 12.6% (8.4% OF TOTAL INVESTMENTS)
 650 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 657,306
 Bonds, Series 2002B-2, 5.350%, 12/01/22 (Alternative
 Minimum Tax)
 1,000 Georgia Housing and Finance Authority, Single Family Mortgage 12/15 at 100.00 AAA 989,250
 Bonds, Series 2006C-2, 4.500%, 12/01/27 (Alternative
 Minimum Tax)
 2,000 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 2,023,280
 Resolution 1 Bonds, Series 2002A-2, 5.450%, 12/01/22
 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
 3,650 Total Housing/Single Family 3,669,836
------------------------------------------------------------------------------------------------------------------------------------
 INDUSTRIALS - 3.5% (2.3% OF TOTAL INVESTMENTS)
 1,000 Cartersville Development Authority, Georgia, Waste and 2/12 at 100.00 BBB+ 1,013,650
 Wastewater Facilities Revenue Refunding Bonds, Anheuser
 Busch Cos. Inc. Project, Series 2002, 5.950%, 2/01/32
 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
 LONG-TERM CARE - 0.9% (0.6% OF TOTAL INVESTMENTS)
 250 Medical Center Hospital Authority, Georgia, Revenue Bonds, No Opt. Call N/R 253,438
 Spring Harbor at Green Island, Series 2007, 5.000%,
 7/01/11
------------------------------------------------------------------------------------------------------------------------------------
 MATERIALS - 2.1% (1.4% OF TOTAL INVESTMENTS)
 20 Richmond County Development Authority, Georgia, Environmental 11/13 at 100.00 BBB 19,739
 Improvement Revenue Bonds, International Paper Company,
 Series 2003A, 5.750%, 11/01/27 (Alternative Minimum Tax)
 600 Richmond County Development Authority, Georgia, Environmental 2/12 at 101.00 BBB 603,318
 Improvement Revenue Refunding Bonds, International Paper
 Company, Series 2002A, 6.000%, 2/01/25 (Alternative
 Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
 620 Total Materials 623,057
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/GENERAL - 13.7% (9.2% OF TOTAL INVESTMENTS)
 360 Cherokee County Resource Recovery Development Authority, 7/17 at 100.00 AA+ 357,343
 Georgia, Solid Waste Disposal Revenue Bonds, Ball Ground
 Recycling LLC Project, Series 2007A, 5.000%, 7/01/37 -
 AMBAC Insured (Alternative Minimum Tax)
 200 Decatur, Georgia, General Obligation Bonds, Series 2007, 1/17 at 100.00 AAA 214,052
 5.000%, 1/01/31 - AGM Insured
 250 Georgia Municipal Association Inc., Certificates of 5/19 at 100.00 AAA 265,180
 Participation, Riverdale Public Purpose Project, Series
 2009, 5.500%, 5/01/38 - AGC Insured
 700 Georgia State, General Obligation Bonds, Series 2007E, 8/17 at 100.00 AAA 780,318
 5.000%, 8/01/24
 100 Georgia State, General Obligation Bonds, Series 2009B, 1/19 at 100.00 AAA 112,108
 5.000%, 1/01/26
 500 Georgia, General Obligation Bonds, Series 2005B, 5.000%, No Opt. Call AAA 583,200
 7/01/15
 1,000 Gwinnett County School District, Georgia, General Obligation 2/18 at 100.00 AAA 1,064,450
 Bonds, Series 2008, 5.000%, 2/01/36 (UB)
 600 Paulding County School District, Georgia, General Obligation 2/17 at 100.00 AA+ 624,108
 Bonds, Series 2007, 5.000%, 2/01/33
------------------------------------------------------------------------------------------------------------------------------------
 3,710 Total Tax Obligation/General 4,000,759
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/LIMITED - 10.2% (6.9% OF TOTAL INVESTMENTS)
 40 Atlanta, Georgia, Tax Allocation Bonds Atlanta Station 12/17 at 100.00 AAA 41,760
 Project, Series 2007, 5.000%, 12/01/23 - AGC Insured
 500 Atlanta, Georgia, Tax Allocation Bonds, Beltline Project No Opt. Call N/R 510,290
 Series 2008B. Remarketed, 7.375%, 1/01/31

Nuveen Investments 31

NZX | Nuveen Georgia Dividend Advantage Municipal Fund (continued) | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/LIMITED (continued)
$ 115 Atlanta, Georgia, Tax Allocation Bonds, Eastside Project, No Opt. Call A- $ 123,856
 Series 2005A, 5.625%, 1/01/16 (Alternative Minimum Tax)
 Atlanta, Georgia, Tax Allocation Bonds, Eastside Project,
 Series 2005B:
 300 5.400%, 1/01/20 7/15 at 100.00 A- 308,877
 75 5.600%, 1/01/30 7/15 at 100.00 A- 75,292
 215 Atlanta, Georgia, Tax Allocation Bonds, Princeton Lakes 1/16 at 100.00 N/R 191,888
 Project, Series 2006, 5.500%, 1/01/31
 65 Cobb-Marietta Coliseum and Exhibit Hall Authority, Georgia, 10/19 at 100.00 A 70,405
 Revenue Refunding Bonds, Series 1993, 5.625%, 10/01/26 -
 NPFG Insured
 1,525 Macon-Bibb County Urban Development Authority, Georgia, 8/12 at 101.00 AA 1,659,490
 Revenue Refunding Bonds, Public Facilities Projects,
 Series 2002A, 5.000%, 8/01/14
------------------------------------------------------------------------------------------------------------------------------------
 2,835 Total Tax Obligation/Limited 2,981,858
------------------------------------------------------------------------------------------------------------------------------------
 TRANSPORTATION - 3.5% (2.3% OF TOTAL INVESTMENTS)
 1,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 7/10 at 101.00 A+ 1,012,590
 Series 2000A, 5.400%, 1/01/15 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
 U.S. GUARANTEED - 21.6% (14.5% OF TOTAL INVESTMENTS) (4)
 1,500 Coweta County Development Authority, Georgia, Revenue Bonds, 1/13 at 100.00 N/R (4) 1,665,330
 Newnan Water and Sewer, and Light Commission Project,
 Series 2002, 5.250%, 1/01/18 (Pre-refunded 1/01/13) - FGIC
 Insured
 1,250 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 N/R (4) 1,308,600
 Revenue Anticipation Certificates, Northeast Georgia
 Health Services Inc., Series 2001, 5.500%, 5/15/31
 (Pre-refunded 5/15/11)
 730 Georgia, General Obligation Bonds, Series 2002D, 5.000%, 8/12 at 100.00 AAA 798,532
 8/01/18 (Pre-refunded 8/01/12)
 1,100 Gwinnett County Hospital Authority, Georgia, Revenue 2/12 at 102.00 Aaa 1,209,241
 Anticipation Certificates, Gwinnett Hospital System Inc.
 Project, Series 1997B, 5.300%, 9/01/27 (Pre-refunded
 2/14/12) - NPFG Insured
 1,200 Private Colleges and Universities Authority, Georgia, Revenue 10/11 at 102.00 Baa2 (4) 1,307,028
 Bonds, Mercer University, Series 2001, 5.750%, 10/01/31
 (Pre-refunded 10/01/11)
------------------------------------------------------------------------------------------------------------------------------------
 5,780 Total U.S. Guaranteed 6,288,731
------------------------------------------------------------------------------------------------------------------------------------
 UTILITIES - 1.9% (1.3% OF TOTAL INVESTMENTS)
 500 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 A1 555,720
 Revenue Bonds, Series 2003A, 5.250%, 11/01/15 - NPFG
 Insured
------------------------------------------------------------------------------------------------------------------------------------
 WATER AND SEWER - 19.9% (13.4% OF TOTAL INVESTMENTS)
 1,200 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 1,239,336
 2004, 5.000%, 11/01/24 - AGM Insured
 625 Cherokee County Water and Sewerage Authority, Georgia, 8/18 at 100.00 AAA 655,288
 Revenue Bonds, Series 2001, 5.000%, 8/01/35 - AGM Insured
 350 Coweta County Water and Sewer Authority, Georgia, Revenue 6/18 at 100.00 Aa2 364,525
 Bonds, Series 2007, 5.000%, 6/01/37
 890 Douglasville-Douglas County Water and Sewer Authority, 6/17 at 100.00 Aa2 924,896
 Georgia, Water and Sewer Revenue Bonds, Series 2007,
 5.000%, 6/01/37 - NPFG Insured
 375 Forsyth County Water and Sewerage Authority, Georgia, Revenue 4/17 at 100.00 AAA 388,593
 Bonds, Series 2007, 5.000%, 4/01/37 - AGM Insured

32 Nuveen Investments

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 WATER AND SEWER (continued)
$ 500 Fulton County, Georgia, Water and Sewerage Revenue Bonds, 1/14 at 100.00 Aa2 $ 526,819
 Series 2004, 5.000%, 1/01/22 - FGIC Insured
 1,395 Macon Water Authority, Georgia, Water and Sewer Revenue 10/11 at 101.00 Aa1 1,476,593
 Bonds, Series 2001B, 5.000%, 10/01/21
 230 Walton County Water and Sewerage Authority, Georgia, Revenue 2/18 at 100.00 Aa2 238,284
 Bonds, The Oconee-Hard Creek Reservoir Project, Series
 2008, 5.000%, 2/01/38 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
 5,565 Total Water and Sewer 5,814,334
------------------------------------------------------------------------------------------------------------------------------------
$ 41,770 Total Investments (cost $42,041,084) - 149.0% 43,465,504
===============---------------------------------------------------------------------------------------------------------------------
 Floating Rate Obligations - (2.3)% (660,000)
 ------------------------------------------------------------------------------------------------------------------
 MuniFund Term Preferred Shares, at Liquidation Value - (49.1)% (5) (14,340,000)
 ------------------------------------------------------------------------------------------------------------------
 Other Assets Less Liabilities - 2.4% 713,680
 ------------------------------------------------------------------------------------------------------------------
 Net Assets Applicable to Common Shares - 100% $ 29,179,184
 ==================================================================================================================

(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 (not covered by the report of independent
 registered public accounting firm): 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 (not covered by the report of independent registered public
 accounting firm): 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.

(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 33.0%.

N/R Not rated.

(IF) Inverse floating rate investment.

(UB) Underlying bond of an inverse floating rate trust reflected as a financing
 transaction. See Notes to Financial Statements, Footnote 1 - Inverse
 Floating Rate Securities for more information.

See accompanying notes to financial statements.

Nuveen Investments 33

NKG | Nuveen Georgia Dividend Advantage Municipal Fund 2 | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 CONSUMER STAPLES - 2.7% (1.8% OF TOTAL INVESTMENTS)
$ 2,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,747,520
 Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
 EDUCATION AND CIVIC ORGANIZATIONS - 17.8% (11.9% OF TOTAL
 INVESTMENTS)
 2,500 Athens Housing Authority, Georgia, Student Housing Lease 12/12 at 100.00 Aa2 2,538,200
 Revenue Bonds, UGAREF East Campus Housing LLC Project,
 Series 2002, 5.000%, 12/01/33 - AMBAC Insured
 500 Athens Housing Authority, Georgia, Student Housing Lease 6/19 at 100.00 Aa2 532,965
 Revenue Bonds, UGAREF East Campus Housing LLC Project,
 Series 2009, 5.250%, 6/15/35
 1,225 Athens-Clarke County Unified Government Development Authority, 12/12 at 100.00 N/R 1,256,568
 Georgia, Educational Facilities Revenue Bonds, UGAREF CCRC
 Building LLC Project, Series 2002, 5.000%, 12/15/18 - AMBAC
 Insured
 3,000 Atlanta Development Authority, Georgia, Educational Facilities 7/17 at 100.00 A1 3,037,380
 Revenue Bonds, Science Park LLC Project, Series 2007,
 5.000%, 7/01/39
 2,000 Fulton County Development Authority, Georgia, Revenue Bonds, 11/13 at 100.00 Aa3 2,045,360
 Georgia Tech - Klaus Parking and Family Housing, Series
 2003, 5.000%, 11/01/23 - NPFG Insured
 1,050 Fulton County Development Authority, Georgia, Revenue Bonds, 2/12 at 100.00 A2 1,056,626
 TUFF Morehouse Project, Series 2002A, 5.000%, 2/01/34 -
 AMBAC Insured
 Private Colleges and Universities Authority, Georgia, Revenue
 Bonds, Emory University, Series 2009B, Trust 3404:
 315 16.758%, 9/01/32 (IF) 9/19 at 100.00 AA 413,135
 490 16.785%, 9/01/35 (IF) 9/19 at 100.00 AA 622,310
------------------------------------------------------------------------------------------------------------------------------------
 11,080 Total Education and Civic Organizations 11,502,544
------------------------------------------------------------------------------------------------------------------------------------
 HEALTH CARE - 28.2% (18.9% OF TOTAL INVESTMENTS)
 150 Baldwin County Hospital Authority, Georgia, Revenue Bonds, 6/10 at 100.00 BB+ 150,023
 Oconee Regional Medical Center, Series 1997, 5.250%,
 12/01/12
 Baldwin County Hospital Authority, Georgia, Revenue Bonds,
 Oconee Regional Medical Center, Series 1998:
 40 5.250%, 12/01/22 12/10 at 100.00 BB+ 35,764
 550 5.375%, 12/01/28 6/10 at 101.00 BB+ 461,659
 Coffee County Hospital Authority, Georgia, Revenue Bonds,
 Coffee County Regional Medical Center, Series 2004:
 185 5.000%, 12/01/19 12/14 at 100.00 BBB- 185,087
 1,000 5.250%, 12/01/22 12/14 at 100.00 BBB- 999,090
 1,000 Floyd County Hospital Authority, Georgia, Revenue Anticipation 7/12 at 101.00 Aa2 1,019,480
 Certificates, Floyd Medical Center Project, Series 2002,
 5.200%, 7/01/32 - NPFG Insured
 Gainesville and Hall County Hospital Authority, Georgia,
 Revenue Anticipation Certificates, Northeast Georgia Health
 Services Inc., Series 2010B:
 700 5.125%, 2/15/40 No Opt. Call A+ 684,789
 1,645 5.250%, 2/15/45 2/41 at 100.00 A+ 1,608,876
 1,140 Houston County Hospital Authority, Georgia, Revenue Bonds, 10/17 at 100.00 A2 1,135,166
 Houston Healthcare Project, Series 2007, 5.250%, 10/01/35
 450 Macon-Bibb County Hospital Authority, Georgia, Revenue 8/19 at 100.00 AA 453,596
 Anticipation Certificates, Medical Center of Central
 Georgia Inc., Series 2009, 5.000%, 8/01/35
 Newnan Hospital Authority, Georgia, Revenue Anticipation
 Certificates, Newnan Hospital Inc., Series 2002:
 2,260 5.500%, 1/01/19 - NPFG Insured 1/13 at 100.00 Aa3 2,521,685
 3,020 5.500%, 1/01/20 - NPFG Insured 1/13 at 100.00 Aa3 3,369,686
 Royston Hospital Authority, Georgia, Revenue Anticipation
 Certificates, Ty Cobb Healthcare System Inc., Series 1999:
 350 6.700%, 7/01/16 7/11 at 100.00 N/R 350,501
 650 6.500%, 7/01/27 7/10 at 101.00 N/R 600,223
 2,000 Savannah Hospital Authority, Georgia, Revenue Bonds, St. 1/14 at 100.00 Baa1 1,986,820
 Joseph's/Candler Health System, Series 2003, 5.250%,
 7/01/23 - RAAI Insured

34 Nuveen Investments

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 HEALTH CARE (continued)
$ 1,945 Tift County Hospital Authority, Georgia, Revenue Anticipation 12/12 at 101.00 Aa3 $ 1,968,690
 Bonds, Tift Regional Medical Center, Series 2002, 5.250%,
 12/01/19 - AMBAC Insured
 750 Valdosta and Lowndes County Hospital Authority, Georgia, 10/17 at 100.00 A+ 730,793
 Revenue Certificates, South Georgia Medical Center, Series
 2007, 5.000%, 10/01/33
------------------------------------------------------------------------------------------------------------------------------------
 17,835 Total Health Care 18,261,928
------------------------------------------------------------------------------------------------------------------------------------
 HOUSING/MULTIFAMILY - 4.7% (3.1% OF TOTAL INVESTMENTS)
 25 Cobb County Development Authority, Georgia, Student Housing 7/17 at 100.00 Baa2 22,591
 Revenue Bonds, KSU Village II Real Estate Foundation LLC
 Project, Series 2007A, 5.250%, 7/15/38 - AMBAC Insured
 Savannah Economic Development Authority, Georgia, GNMA
 Collateralized Multifamily Housing Revenue Bonds, Snap
 I-II-III Apartments, Series 2002A:
 500 5.150%, 11/20/22 (Alternative Minimum Tax) 11/12 at 102.00 AAA 512,635
 980 5.200%, 11/20/27 (Alternative Minimum Tax) 11/12 at 102.00 AAA 999,963
 1,465 5.250%, 11/20/32 (Alternative Minimum Tax) 11/12 at 102.00 AAA 1,487,136
------------------------------------------------------------------------------------------------------------------------------------
 2,970 Total Housing/Multifamily 3,022,325
------------------------------------------------------------------------------------------------------------------------------------
 HOUSING/SINGLE FAMILY - 0.5% (0.3% OF TOTAL INVESTMENTS)
 170 Georgia Housing and Finance Authority, Single Family Mortgage 12/15 at 100.00 AAA 159,307
 Bonds, Series 2006C-2, 4.550%, 12/01/31 (Alternative
 Minimum Tax)
 150 Georgia Housing and Finance Authority, Single Family Mortgage 6/11 at 100.00 AAA 153,441
 Resolution 1 Bonds, Series 2001B-2, 5.400%, 12/01/31
 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
 320 Total Housing/Single Family 312,748
------------------------------------------------------------------------------------------------------------------------------------
 INDUSTRIALS - 3.3% (2.2% OF TOTAL INVESTMENTS)
 2,190 Cobb County Development Authority, Georgia, Solid Waste 4/16 at 101.00 BBB 2,125,986
 Disposal Revenue Bonds, Georgia Waste Management Project,
 Series 2004A, 5.000%, 4/01/33 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
 LONG-TERM CARE - 0.4% (0.3% OF TOTAL INVESTMENTS)
 250 Medical Center Hospital Authority, Georgia, Revenue Bonds, No Opt. Call N/R 253,438
 Spring Harbor at Green Island, Series 2007, 5.000%,
 7/01/11
------------------------------------------------------------------------------------------------------------------------------------
 MATERIALS - 2.5% (1.7% OF TOTAL INVESTMENTS)
 1,000 Richmond County Development Authority, Georgia, Environmental 2/11 at 101.00 BBB 1,011,640
 Improvement Revenue Bonds, International Paper Company,
 Series 2001A, 6.250%, 2/01/25 (Alternative Minimum Tax)
 250 Richmond County Development Authority, Georgia, Environmental 2/12 at 101.00 BBB 251,383
 Improvement Revenue Refunding Bonds, International Paper
 Company, Series 2002A, 6.000%, 2/01/25 (Alternative
 Minimum Tax)
 370 Savannah Economic Development Authority, Georgia, Pollution No Opt. Call Baa3 394,331
 Control Revenue Bonds, Union Camp Corporation, Series
 1995, 6.150%, 3/01/17
------------------------------------------------------------------------------------------------------------------------------------
 1,620 Total Materials 1,657,354
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/GENERAL - 26.6% (17.8% OF TOTAL INVESTMENTS)
 600 Cherokee County Resource Recovery Development Authority, 7/17 at 100.00 AA+ 595,572
 Georgia, Solid Waste Disposal Revenue Bonds, Ball Ground
 Recycling LLC Project, Series 2007A, 5.000%, 7/01/37 -
 AMBAC Insured (Alternative Minimum Tax)
 900 Decatur, Georgia, General Obligation Bonds, Series 2007, 1/17 at 100.00 AAA 963,234
 5.000%, 1/01/31 - AGM Insured
 1,000 Forsyth County, Georgia, General Obligation Bonds, Series 3/14 at 101.00 Aaa 1,129,350
 2004, 5.250%, 3/01/19
 915 Georgia Municipal Association Inc., Certificates of 5/19 at 100.00 AAA 970,559
 Participation, Riverdale Public Purpose Project, Series
 2009, 5.500%, 5/01/38 - AGC Insured
 1,700 Georgia State, General Obligation Bonds, Series 2007E, 8/17 at 100.00 AAA 1,895,058
 5.000%, 8/01/24
 1,645 Georgia State, General Obligation Bonds, Series 2009B, 1/19 at 100.00 AAA 1,844,177
 5.000%, 1/01/26
 750 Georgia, General Obligation Bonds, Series 1998D, 5.250%, No Opt. Call AAA 887,700
 10/01/15
 1,000 Georgia, General Obligation Bonds, Series 2005B, 5.000%, No Opt. Call AAA 1,166,400
 7/01/15
 2,100 Gwinnett County School District, Georgia, General Obligation 2/18 at 100.00 AAA 2,235,345
 Bonds, Series 2008, 5.000%, 2/01/36 (UB)
 250 La Grange-Troup County Hospital Authority, Georgia, Revenue 7/18 at 100.00 Aa2 257,553
 Anticipation Certificates, Series 2008A, 5.500%, 7/01/38

Nuveen Investments 35

NKG | Nuveen Georgia Dividend Advantage Municipal Fund 2 (continued) | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/GENERAL (continued)
 Oconee County, Georgia, General Obligation Bonds, Recreation
 Project, Series 2003:
$ 1,410 5.500%, 1/01/23 - AMBAC Insured 1/13 at 101.00 Aa2 $ 1,538,014
 1,470 5.250%, 1/01/26 - AMBAC Insured 1/13 at 101.00 Aa2 1,560,140
 1,200 Paulding County School District, Georgia, General Obligation 2/17 at 100.00 AA+ 1,248,216
 Bonds, Series 2007, 5.000%, 2/01/33
 950 Wayne County Hospital Authority, Georgia, Hospital Revenue 3/16 at 100.00 N/R 913,767
 Bonds, Series 2006, 5.000%, 3/01/23 - SYNCORA GTY Insured
------------------------------------------------------------------------------------------------------------------------------------
 15,890 Total Tax Obligation/General 17,205,085
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/LIMITED - 13.4% (8.9% OF TOTAL INVESTMENTS)
 Atlanta, Georgia, Tax Allocation Bonds Atlanta Station
 Project, Series 2007:
 5 5.250%, 12/01/21 No Opt. Call AAA 5,383
 620 5.000%, 12/01/23 - AGC Insured 12/17 at 100.00 AAA 647,274
 1,000 Atlanta, Georgia, Tax Allocation Bonds, Beltline Project No Opt. Call N/R 1,020,580
 Series 2008B, Remarketed, 7.375%, 1/01/31
 110 Atlanta, Georgia, Tax Allocation Bonds, Eastside Project, No Opt. Call A- 118,471
 Series 2005A, 5.625%, 1/01/16 (Alternative Minimum Tax)
 Atlanta, Georgia, Tax Allocation Bonds, Eastside Project,
 Series 2005B:
 450 5.400%, 1/01/20 7/15 at 100.00 A- 463,316
 350 5.600%, 1/01/30 7/15 at 100.00 A- 351,362
 340 Atlanta, Georgia, Tax Allocation Bonds, Princeton Lakes 1/16 at 100.00 N/R 303,450
 Project, Series 2006, 5.500%, 1/01/31
 Cobb-Marietta Coliseum and Exhibit Hall Authority, Georgia,
 Revenue Refunding Bonds, Series 1993:
 105 5.500%, 10/01/18 - NPFG Insured No Opt. Call A 115,939
 1,720 5.625%, 10/01/26 - NPFG Insured 10/19 at 100.00 A 1,863,035
 750 Georgia Municipal Association Inc., Certificates of 6/12 at 101.00 N/R 761,933
 Participation, Atlanta Court Project, Series 2002, 5.125%,
 12/01/21 - AMBAC Insured
 2,500 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales No Opt. Call Aa2 3,002,350
 Tax Revenue Refunding Bonds, Series 1992P, 6.250%, 7/01/20
 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
 7,950 Total Tax Obligation/Limited 8,653,093
------------------------------------------------------------------------------------------------------------------------------------
 TRANSPORTATION - 5.0% (3.4% OF TOTAL INVESTMENTS)
 3,195 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/11 at 100.50 A+ 3,237,845
 Series 2000A, 5.500%, 1/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
 U.S. GUARANTEED - 10.4% (7.0% OF TOTAL INVESTMENTS) (4)
 1,000 Augusta, Georgia, Water and Sewerage Revenue Bonds, Series 10/12 at 100.00 AAA 1,104,370
 2002, 5.250%, 10/01/22 (Pre-refunded 10/01/12) - AGM
 Insured
 1,000 Cherokee County School System, Georgia, General Obligation 8/13 at 100.00 AA+ (4) 1,123,950
 Bonds, Series 2003, 5.000%, 8/01/16 (Pre-refunded 8/01/13)
 - NPFG Insured
 DeKalb County, Georgia, Water and Sewerage Revenue Bonds,
 Series 2000:
 1,000 5.125%, 10/01/31 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 1,026,220
 900 5.375%, 10/01/35 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 924,363
 1,305 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 N/R (4) 1,366,178
 Revenue Anticipation Certificates, Northeast Georgia
 Health Services Inc., Series 2001, 5.500%, 5/15/31
 (Pre-refunded 5/15/11)
 1,100 Private Colleges and Universities Authority, Georgia, Revenue 10/11 at 102.00 Baa2 (4) 1,198,109
 Bonds, Mercer University, Series 2001, 5.750%, 10/01/31
 (Pre-refunded 10/01/11)
------------------------------------------------------------------------------------------------------------------------------------
 6,305 Total U.S. Guaranteed 6,743,190
------------------------------------------------------------------------------------------------------------------------------------
 UTILITIES - 4.8% (3.2% OF TOTAL INVESTMENTS)
 1,000 Elberton, Georgia, Combined Utility System Revenue Refunding 1/12 at 100.00 A3 1,043,220
 and Improvement Bonds, Series 2001, 5.000%, 1/01/22 -
 AMBAC Insured
 1,000 Georgia Municipal Electric Authority, General Power Revenue 1/17 at 100.00 A 1,050,310
 Bonds, Project 1, Series 2007A, 5.000%, 1/01/25 - NPFG
 Insured
 1,000 Municipal Electric Authority of Georgia, Project One 1/13 at 100.00 A 1,040,910
 Subordinated Lien Revenue Bonds, Series 2003A, 5.000%,
 1/01/22 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
 3,000 Total Utilities 3,134,440
------------------------------------------------------------------------------------------------------------------------------------

36 Nuveen Investments

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 WATER AND SEWER - 29.2% (19.5% OF TOTAL INVESTMENTS)
 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series
 2004:
$ 500 5.250%, 11/01/15 - AGM Insured 11/14 at 100.00 AAA $ 554,595
 700 5.000%, 11/01/37 - AGM Insured 11/14 at 100.00 AAA 705,215
 3,500 Augusta, Georgia, Water and Sewerage Revenue Bonds, Series 10/12 at 100.00 AAA 3,585,190
 2002, 5.000%, 10/01/27 - AGM Insured
 1,990 Cherokee County Water and Sewerage Authority, Georgia, 8/18 at 100.00 AAA 2,086,435
 Revenue Bonds, Series 2001, 5.000%, 8/01/35 - AGM Insured
 Coweta County Water and Sewer Authority, Georgia, Revenue
 Bonds, Series 2007:
 500 5.000%, 6/01/32 6/18 at 100.00 Aa2 525,230
 500 5.000%, 6/01/37 6/18 at 100.00 Aa2 520,750
 1,000 Douglasville-Douglas County Water and Sewer Authority, 12/15 at 100.00 Aa2 1,051,270
 Georgia, Water and Sewer Revenue Bonds, Series 2005,
 5.000%, 6/01/29 - NPFG Insured
 445 Douglasville-Douglas County Water and Sewer Authority, 6/17 at 100.00 Aa2 462,448
 Georgia, Water and Sewer Revenue Bonds, Series 2007,
 5.000%, 6/01/37 - NPFG Insured
 4,000 Forsyth County Water and Sewerage Authority, Georgia, Revenue 4/13 at 100.00 Aaa 4,165,839
 Bonds, Series 2002, 5.000%, 4/01/32
 375 Forsyth County Water and Sewerage Authority, Georgia, Revenue 4/17 at 100.00 AAA 388,593
 Bonds, Series 2007, 5.000%, 4/01/37 - AGM Insured
 950 Fulton County, Georgia, Water and Sewerage Revenue Bonds, 7/10 at 100.00 Aa2 953,476
 Series 1998, 5.000%, 1/01/16 - FGIC Insured
 3,100 Harris County, Georgia, Water System Revenue Bonds, Series 12/12 at 100.00 N/R 3,189,465
 2002, 5.000%, 12/01/22 - AMBAC Insured
 685 Walton County Water and Sewerage Authority, Georgia, Revenue 2/18 at 100.00 Aa2 709,673
 Bonds, The Oconee-Hard Creek Reservoir Project, Series
 2008, 5.000%, 2/01/38 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
 18,245 Total Water and Sewer 18,898,179
------------------------------------------------------------------------------------------------------------------------------------
$ 92,850 Total Investments (cost $93,933,803) - 149.5% 96,755,675
===============---------------------------------------------------------------------------------------------------------------------
 Floating Rate Obligations - (2.2)% (1,395,000)
 ------------------------------------------------------------------------------------------------------------------
 MuniFund Term Preferred Shares, at Liquidation Value - (49.9)% (5) (32,265,000)
 ------------------------------------------------------------------------------------------------------------------
 Other Assets Less Liabilities - 2.6% 1,625,233
 ------------------------------------------------------------------------------------------------------------------
 Net Assets Applicable to Common Shares - 100% $ 64,720,908
 ==================================================================================================================

(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 (not covered by the report of independent
 registered public accounting firm): 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 (not covered by the report of independent registered public
 accounting firm): 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.

(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 33.3%.

N/R Not rated.

(IF) Inverse floating rate investment.

(UB) Underlying bond of an inverse floating rate trust reflected as a financing
 transaction. See Notes to Financial Statements, Footnote 1 - Inverse
 Floating Rate Securities for more information.

See accompanying notes to financial statements.

Nuveen Investments 37

NNC | Nuveen North Carolina Premium Income Municipal Fund | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 EDUCATION AND CIVIC ORGANIZATIONS - 21.4% (14.1% OF TOTAL
 INVESTMENTS)
$ 2,500 North Carolina Capital Facilities Financing Agency, Revenue 10/15 at 100.00 AA+ $ 2,591,650
 Bonds, Duke University, Series 2005A, 5.000%, 10/01/41
 (UB)
 970 North Carolina Capital Facilities Financing Agency, Revenue 4/13 at 100.00 N/R 975,898
 Bonds, Johnson and Wales University, Series 2003A, 5.250%,
 4/01/23 - SYNCORA GTY Insured
 2,285 North Carolina State University at Raleigh, General Revenue 10/13 at 100.00 Aa1 2,553,145
 Bonds, Series 2003A, 5.000%, 10/01/15
 1,530 University of North Carolina System, Pooled Revenue Bonds, No Opt. Call A 1,719,781
 Series 2005A, 5.000%, 4/01/15 - AMBAC Insured
 120 University of North Carolina System, Pooled Revenue Refunding 10/12 at 100.00 N/R 127,528
 Bonds, Series 2002A, 5.375%, 4/01/22 - AMBAC Insured
 University of North Carolina Wilmington, Certificates of
 Participation, Student Housing Project Revenue Bonds, Series
 2006:
 1,430 5.000%, 6/01/23 - FGIC Insured 6/16 at 100.00 A 1,509,765
 1,505 5.000%, 6/01/24 - FGIC Insured 6/16 at 100.00 A 1,578,113
 University of North Carolina, Chapel Hill, System Net Revenue
 Bonds, Series 2003:
 2,380 5.000%, 12/01/19 12/13 at 100.00 Aaa 2,558,095
 2,725 5.000%, 12/01/21 12/13 at 100.00 Aaa 2,990,933
 1,500 5.000%, 12/01/23 12/13 at 100.00 Aaa 1,640,520
 1,675 University of North Carolina, Wilmington, General Revenue 1/12 at 101.00 A1 1,805,499
 Bonds, Series 2002A, 5.000%, 1/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
 18,620 Total Education and Civic Organizations 20,050,927
------------------------------------------------------------------------------------------------------------------------------------
 ENERGY - 1.6% (1.1% OF TOTAL INVESTMENTS)
 1,500 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 Baa3 1,517,925
 Refinery Project - Hovensa LLC, Series 2003, 6.125%,
 7/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
 HEALTH CARE - 22.4% (14.7% OF TOTAL INVESTMENTS)
 1,145 Albemarle Hospital Authority, North Carolina, Health Care 10/17 at 100.00 N/R 1,050,812
 Facilities Revenue Bonds, Series 2007, 5.250%, 10/01/27
 2,300 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 2,318,722
 Carolinas HealthCare System Revenue Bonds, Series 2008A,
 5.000%, 1/15/47
 1,000 Johnston Memorial Hospital Authority, North Carolina, 4/18 at 100.00 AAA 1,033,010
 Mortgage Revenue Bonds, Johnston Memorial Hospital
 Project, Series 2008, 5.250%, 10/01/36 - AGM Insured
 225 New Hanover County, North Carolina, Hospital Revenue Bonds, 10/19 at 100.00 AAA 233,354
 New Hanover Regional Medical Center, Series 2006B, 5.125%,
 10/01/31 - AGM Insured
 920 North Carolina Medical Care Commission, Health Care 10/14 at 100.00 AAA 952,642
 Facilities Revenue Bonds, WakeMed, Series 2009A, 5.625%,
 10/01/38 - AGC Insured
 2,000 North Carolina Medical Care Commission, Healthcare Facilities 11/13 at 100.00 A+ 2,081,560
 Revenue Bonds, Novant Health Obligated Group, Series
 2003A, 5.000%, 11/01/19
 2,000 North Carolina Medical Care Commission, Healthcare Facilities 10/10 at 100.00 BBB+ 2,003,120
 Revenue Bonds, Stanly Memorial Hospital, Series 1999,
 6.375%, 10/01/29
 North Carolina Medical Care Commission, Healthcare Facilities
 Revenue Bonds, Union Regional Medical Center, Series 2002A:
 1,000 5.500%, 1/01/19 1/12 at 100.00 A+ 1,018,540
 550 5.500%, 1/01/20 1/12 at 100.00 A+ 558,839
 1,750 5.375%, 1/01/32 1/12 at 100.00 A+ 1,753,465
 3,000 North Carolina Medical Care Commission, Hospital Revenue 6/12 at 101.00 A 2,959,980
 Bonds, Southeastern Regional Medical Center, Series 2002,
 5.375%, 6/01/32
 1,500 North Carolina Medical Care Commission, Hospital Revenue 11/17 at 100.00 A- 1,459,125
 Bonds, Wilson Medical Center, Series 2007, 5.000%,
 11/01/27
 1,395 North Carolina Medical Care Commission, Revenue Bonds, Blue 1/15 at 100.00 A 1,398,334
 Ridge Healthcare System, Series 2005, 5.000%, 1/01/33 -
 FGIC Insured

38 Nuveen Investments

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 HEALTH CARE (continued)
 North Carolina Medical Care Commission, Revenue Bonds,
 Cleveland County Healthcare System, Series 2004A:
$ 600 5.250%, 7/01/20 - AMBAC Insured 7/14 at 100.00 A $ 619,338
 500 5.250%, 7/01/22 - AMBAC Insured 7/14 at 100.00 A 513,100
 300 Northern Hospital District of Surry County, North Carolina, 4/18 at 100.00 BBB 305,922
 Health Care Facilities Revenue Bonds, Series 2008, 6.250%,
 10/01/38
 660 Onslow County Hospital Authority, North Carolina, FHA Insured 10/16 at 100.00 A 667,458
 Mortgage Revenue Bonds, Onslow Memorial Hospital Project,
 Series 2006, 5.000%, 4/01/31 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
 20,845 Total Health Care 20,927,321
------------------------------------------------------------------------------------------------------------------------------------
 HOUSING/MULTIFAMILY - 4.6% (3.0% OF TOTAL INVESTMENTS)
 1,000 Asheville Housing Authority, North Carolina, 11/10 at 100.00 AAA 1,000,530
 GNMA-Collateralized Multifamily Housing Revenue Bonds,
 Woodridge Apartments, Series 1997, 5.800%, 11/20/39
 (Alternative Minimum Tax)
 2,290 Mecklenburg County, North Carolina, FNMA Multifamily Housing 7/13 at 105.00 AAA 2,358,746
 Revenue Bonds, Little Rock Apartments, Series 2003,
 5.375%, 1/01/36 (Alternative Minimum Tax)
 1,000 North Carolina Capital Facilities Financing Agency, Housing 6/13 at 100.00 N/R 928,200
 Revenue Bonds, Elizabeth City State University, Series
 2003A, 5.000%, 6/01/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
 4,290 Total Housing/Multifamily 4,287,476
------------------------------------------------------------------------------------------------------------------------------------
 HOUSING/SINGLE FAMILY - 6.2% (4.1% OF TOTAL INVESTMENTS)
 945 North Carolina Housing Finance Agency, Home Ownership Revenue 7/10 at 100.00 AA 945,284
 Bonds, 1998 Trust Agreement, Series 10A, 5.400%, 7/01/32 -
 AMBAC Insured (Alternative Minimum Tax)
 2,000 North Carolina Housing Finance Agency, Home Ownership Revenue 7/10 at 100.00 AA 2,002,020
 Bonds, 1998 Trust Agreement, Series 6A, 6.200%, 1/01/29
 (Alternative Minimum Tax)
 1,000 North Carolina Housing Finance Agency, Home Ownership Revenue 1/17 at 100.00 AA 977,430
 Bonds, Series 2007-29A, 4.800%, 7/01/33 (Alternative
 Minimum Tax)
 825 North Carolina Housing Finance Agency, Home Ownership Revenue 7/16 at 100.00 AA 810,389
 Bonds, Series 25-A, 4.900%, 7/01/37 (Alternative Minimum
 Tax)
 1,115 North Carolina Housing Finance Agency, Single Family Revenue 9/10 at 100.00 AA 1,117,765
 Bonds, Series 1996HH, 6.300%, 3/01/26 (Alternative Minimum
 Tax)
------------------------------------------------------------------------------------------------------------------------------------
 5,885 Total Housing/Single Family 5,852,888
------------------------------------------------------------------------------------------------------------------------------------
 LONG-TERM CARE - 0.4% (0.2% OF TOTAL INVESTMENTS)
 375 North Carolina Medical Care Commission, Revenue Bonds, Pines 1/16 at 100.00 N/R 349,879
 at Davidson, Series 2006A, 5.000%, 1/01/36
------------------------------------------------------------------------------------------------------------------------------------
 MATERIALS - 0.5% (0.3% OF TOTAL INVESTMENTS)
 500 Columbus County Industrial Facilities and Pollution Control 3/17 at 100.00 BBB 433,165
 Financing Authority, North Carolina, Environmental
 Improvement Revenue Bonds, International Paper Company
 Project, Series 2007A, 4.625%, 3/01/27
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/GENERAL - 11.6% (7.7% OF TOTAL INVESTMENTS)
 1,890 Craven County, North Carolina, General Obligation Bonds, 5/12 at 101.00 AA 2,066,148
 Series 2002, 5.000%, 5/01/21 - AMBAC Insured
 4,285 Durham County, North Carolina, General Obligation Bonds, 4/12 at 100.00 AAA 4,630,200
 Series 2002B, 5.000%, 4/01/16
 1,820 Durham, North Carolina, General Obligation Bonds, Series 4/17 at 100.00 AAA 2,061,605
 2007, 5.000%, 4/01/21
 2,000 Wake County, North Carolina, Limited Obligation Bonds, Series 1/20 at 100.00 AA+ 2,121,120
 2010, 5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
 9,995 Total Tax Obligation/General 10,879,073
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/LIMITED - 39.4% (25.9% OF TOTAL INVESTMENTS)
 1,330 Cabarrus County, North Carolina, Certificates of 2/13 at 100.00 AA 1,438,994
 Participation, Series 2002, 5.250%, 2/01/17
 1,800 Catawba County, North Carolina, Certificates of 6/14 at 100.00 Aa2 1,906,632
 Participation, Series 2004, 5.250%, 6/01/21 - NPFG Insured
 1,700 Charlotte, North Carolina, Certificates of Participation, 6/13 at 100.00 AA+ 1,787,533
 Governmental Facilities Projects, Series 2003G, 5.375%,
 6/01/26
 1,400 Charlotte, North Carolina, Certificates of Participation, 6/19 at 100.00 AA+ 1,468,278
 Nascar Hall of Fame, Series 2009C, 5.000%, 6/01/39

Nuveen Investments 39

NNC | Nuveen North Carolina Premium Income Municipal Fund (continued) | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/LIMITED (continued)
$ 950 Charlotte, North Carolina, Certificates of Participation, 6/18 at 100.00 AA+ $ 994,650
 Transit Projects Phase 2, Series 2008A, 5.000%, 6/01/33
 1,500 Charlotte, North Carolina, Certificates of Participation, 6/13 at 100.00 AA+ 1,539,330
 Transit Projects, Series 2003A, 5.000%, 6/01/33
 Charlotte, North Carolina, Storm Water Fee Revenue Bonds,
 Series 2002:
 1,050 5.250%, 6/01/20 6/12 at 101.00 AAA 1,142,799
 1,750 5.000%, 6/01/25 6/12 at 101.00 AAA 1,877,033
 1,400 Craven County, North Carolina, Certificates of Participation, 6/17 at 100.00 AA- 1,464,792
 Series 2007, 5.000%, 6/01/27 - NPFG Insured
 1,000 Davidson County, North Carolina, Certificates of No Opt. Call Aa3 1,121,430
 Participation, Series 2004, 5.250%, 6/01/14 - AMBAC
 Insured
 750 Harnett County, North Carolina, Certificates of 6/19 at 100.00 AAA 795,773
 Participation, Series 2009, 5.000%, 6/01/28 - AGC Insured
 Lee County, North Carolina, Certificates of Participation,
 Public Schools and Community College, Series 2004:
 1,715 5.250%, 4/01/18 - AGM Insured 4/14 at 100.00 AAA 1,858,820
 500 5.250%, 4/01/20 - AGM Insured 4/14 at 100.00 AAA 534,885
 1,000 5.250%, 4/01/22 - AGM Insured 4/14 at 100.00 AAA 1,060,320
 200 Mecklenburg County, North Carolina, Certificates of No Opt. Call AA+ 214,376
 Participation, Series 2009A, 5.000%, 2/01/27
 2,600 North Carolina Infrastructure Finance Corporation, 2/15 at 100.00 AA+ 2,856,334
 Certificates of Participation, Capital Improvements,
 Series 2005A, 5.000%, 2/01/19
 1,500 North Carolina Infrastructure Finance Corporation, 2/14 at 100.00 AA+ 1,607,865
 Certificates of Participation, Correctional Facilities,
 Series 2004A, 5.000%, 2/01/23
 1,500 North Carolina, Certificates of Participation, Repair and 6/14 at 100.00 AA+ 1,602,735
 Renovation Project, Series 2004B, 5.000%, 6/01/20
 North Carolina, Certificates of Participation, Series 2003:
 1,130 5.250%, 6/01/21 6/13 at 100.00 AA+ 1,222,310
 1,000 5.250%, 6/01/23 6/13 at 100.00 AA+ 1,062,990
 2,000 Puerto Rico Highway and Transportation Authority, Grant 3/14 at 100.00 A+ 2,033,020
 Anticipation Revenue Bonds, Series 2004, 5.000%, 9/15/21 -
 NPFG Insured
 3,675 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 792,036
 Revenue Bonds, First Subordinate Series 2010A, 0.000%,
 8/01/35
 285 Raleigh, North Carolina, Certificates of Participation, 2/17 at 100.00 AA+ 303,254
 Series 2007, 5.000%, 2/01/27
 1,000 Randolph County, North Carolina, Certificates of 6/14 at 102.00 AAA 1,080,600
 Participation, Series 2004, 5.000%, 6/01/20 - AGM Insured
 1,000 Rutherford County, North Carolina, Certificates of 12/17 at 100.00 AAA 1,060,970
 Participation, Series 2007, 5.000%, 12/01/27 - AGM Insured
 1,950 Sampson County, North Carolina, Certificates of 6/17 at 100.00 AAA 2,010,411
 Participation, Series 2006, 5.000%, 6/01/34 - AGM Insured
 (UB)
 1,200 Wilmington, North Carolina, Certificates of Participation, 6/18 at 100.00 AA 1,276,464
 Series 2008A, 5.000%, 6/01/29
 700 Wilson County, North Carolina, Certificates of Participation, 4/17 at 100.00 Aa3 727,895
 School Facilities Project, Series 2007, 5.000%, 4/01/25 -
 AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
 37,585 Total Tax Obligation/Limited 36,842,529
------------------------------------------------------------------------------------------------------------------------------------
 TRANSPORTATION - 12.5% (8.2% OF TOTAL INVESTMENTS)
 2,500 Charlotte, North Carolina, Airport Revenue Bonds, Charlotte 7/20 at 100.00 A+ 2,557,600
 Douglas International Refunding Series 2010A, 5.000%,
 7/01/39
 Charlotte, North Carolina, Airport Revenue Bonds, Series
 2004A:
 600 5.250%, 7/01/24 - NPFG Insured 7/14 at 100.00 A+ 642,996
 2,710 5.000%, 7/01/29 - NPFG Insured 7/14 at 100.00 A+ 2,772,222
 1,020 North Carolina State Ports Authority, Port Facilities Revenue 2/20 at 100.00 A3 1,043,144
 Bonds, Senior Lien Series 2010A, 5.250%, 2/01/40
 600 North Carolina Turnpike Authority, Triangle Expressway System 1/19 at 100.00 AAA 646,278
 Revenue Bonds, Series 2009A, 5.750%, 1/01/39 - AGC Insured

40 Nuveen Investments

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 TRANSPORTATION (continued)
$ 4,230 North Carolina Turnpike Authority, Triangle Expressway System No Opt. Call AAA $ 1,193,495
 Senior Lien Revenue Bonds, Series 2009B, 0.000%, 1/01/33 -
 AGC Insured
 500 Piedmont Triad Airport Authority, North Carolina, Airport 7/15 at 100.00 A2 532,165
 Revenue Bonds, Series 2005A, 5.000%, 7/01/20 - SYNCORA GTY
 Insured
 2,250 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aa3 2,321,550
 Revenue Bonds, Series 2001A, 5.250%, 11/01/16 - FGIC
 Insured
------------------------------------------------------------------------------------------------------------------------------------
 14,410 Total Transportation 11,709,450
------------------------------------------------------------------------------------------------------------------------------------
 U.S. GUARANTEED - 11.7% (7.7% OF TOTAL INVESTMENTS) (4)
 1,530 North Carolina Medical Care Commission, Health System Revenue 10/11 at 101.00 AA (4) 1,642,134
 Bonds, Mission St. Joseph's Health System, Series 2001,
 5.250%, 10/01/31 (Pre-refunded 10/01/11)
 735 North Carolina Medical Care Commission, Revenue Bonds, 11/14 at 100.00 Aa3 (4) 849,682
 Northeast Medical Center, Series 2004, 5.000%, 11/01/24
 (Pre-refunded 11/01/14)
 4,260 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA 4,908,670
 Revenue Bonds, Series 1986, 5.000%, 1/01/20 (ETM)
 400 North Carolina, General Obligation Bonds, Series 2000A, 9/10 at 102.00 AAA 412,984
 5.100%, 9/01/16 (Pre-refunded 9/01/10)
 University of North Carolina System, Pooled Revenue Refunding
 Bonds, Series 2002A:
 420 5.375%, 4/01/22 (Pre-refunded 10/01/12) - AMBAC Insured 10/12 at 100.00 N/R (4) 465,053
 460 5.375%, 4/01/22 (Pre-refunded 10/01/12) - AMBAC Insured 10/12 at 100.00 N/R (4) 508,548
 2,000 Winston-Salem, North Carolina, Water and Sewerage System 6/12 at 100.00 AAA 2,171,540
 Revenue Bonds, Series 2002A, 5.000%, 6/01/18 (Pre-refunded
 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
 9,805 Total U.S. Guaranteed 10,958,611
------------------------------------------------------------------------------------------------------------------------------------
 UTILITIES - 9.0% (6.0% OF TOTAL INVESTMENTS)
 25 North Carolina Eastern Municipal Power Agency, Power System 1/13 at 100.00 A- 26,747
 Revenue Bonds, Series 2003C, 5.375%, 1/01/17
 3,000 North Carolina Eastern Municipal Power Agency, Power System 1/13 at 100.00 A- 3,220,500
 Revenue Bonds, Series 2003F, 5.500%, 1/01/15
 1,000 North Carolina Eastern Municipal Power Agency, Power System 1/16 at 100.00 AA 1,069,790
 Revenue Bonds, Series 2005, 5.250%, 1/01/20 - AMBAC
 Insured
 North Carolina Eastern Municipal Power Agency, Power System
 Revenue Refunding Bonds, Series 1993B:
 15 5.500%, 1/01/17 - FGIC Insured 7/10 at 100.00 Baa1 15,026
 105 5.500%, 1/01/21 7/10 at 100.00 A- 105,128
 165 6.000%, 1/01/22 - FGIC Insured No Opt. Call Baa1 193,520
 575 North Carolina Municipal Power Agency 1, Catawba Electric 1/19 at 100.00 A 595,689
 Revenue Bonds, Refunding Series 2009A, 5.000%, 1/01/30
 2,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 A 2,188,840
 Revenue Bonds, Series 2003A, 5.250%, 1/01/15 - AMBAC
 Insured
 1,000 Wake County Industrial Facilities and Pollution Control 2/12 at 101.00 A1 1,060,530
 Financing Authority, North Carolina, Revenue Refunding
 Bonds, Carolina Power and Light Company, Series 2002,
 5.375%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
 7,885 Total Utilities 8,475,770
------------------------------------------------------------------------------------------------------------------------------------
 WATER AND SEWER - 10.6% (7.0% OF TOTAL INVESTMENTS)
 1,605 Broad River Water Authority, North Carolina, Water System 6/15 at 100.00 A2 1,643,440
 Revenue Bonds, Series 2005, 5.000%, 6/01/20 - SYNCORA GTY
 Insured
 500 Brunswick County, North Carolina, Enterprise System Revenue 4/18 at 100.00 AAA 524,760
 Bonds, Series 2008A, 5.000%, 4/01/31 - AGM Insured
 50 Charlotte, North Carolina, Water and Sewerage System Revenue 6/11 at 101.00 AAA 51,975
 Bonds, Series 2001, 5.125%, 6/01/26
 1,295 Greensboro, North Carolina, Combined Enterprise System 6/15 at 100.00 AAA 1,383,837
 Revenue Bonds, Series 2005A, 5.000%, 6/01/26
 Oak Island, North Carolina, Enterprise System Revenue Bonds,
 Series 2009A:
 550 6.000%, 6/01/34 - AGC Insured 6/19 at 100.00 AAA 603,289
 1,000 6.000%, 6/01/36 - AGC Insured 6/19 at 100.00 AAA 1,092,279

Nuveen Investments 41

NNC | Nuveen North Carolina Premium Income Municipal Fund (continued) | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 WATER AND SEWER (continued)
$ 500 Onslow County, North Carolina, Combined Enterprise System 6/14 at 100.00 A $ 525,489
 Revenue Bonds, Series 2004B, 5.000%, 6/01/23 - SYNCORA GTY
 Insured
 3,865 Winston-Salem, North Carolina, Water and Sewer System Revenue 6/17 at 100.00 AAA 4,068,994
 Bonds, Series 2007A, 5.000%, 6/01/37 (UB)
------------------------------------------------------------------------------------------------------------------------------------
 9,365 Total Water and Sewer 9,894,063
------------------------------------------------------------------------------------------------------------------------------------
$ 141,060 Total Investments (cost $136,722,688) - 151.9% 142,179,077
===============---------------------------------------------------------------------------------------------------------------------
 Floating Rate Obligations - (5.6)% (5,195,000)
 ------------------------------------------------------------------------------------------------------------------
 MuniFund Term Preferred Shares, at Liquidation Value - (26.0)% (5) (24,300,000)
 ------------------------------------------------------------------------------------------------------------------
 Other Assets Less Liabilities - 2.7% 2,435,808
 ------------------------------------------------------------------------------------------------------------------
 Auction Rate Preferred Shares, at Liquidation Value - (23.0)% (5) (21,550,000)
 ------------------------------------------------------------------------------------------------------------------
 Net Assets Applicable to Common Shares - 100% $ 93,569,885
 ==================================================================================================================

(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): 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.

(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 and Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments are 17.1% and 15.2%, respectively.

N/R Not rated.

(ETM) Escrowed to maturity.

(UB) Underlying bond of an inverse floating rate trust reflected as a financing
 transaction. See Notes to Financial Statements, Footnote 1 - Inverse
 Floating Rate Securities for more information.

See accompanying notes to financial statements.

42 Nuveen Investments

NRB | Nuveen North Carolina Dividend Advantage Municipal Fund | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 EDUCATION AND CIVIC ORGANIZATIONS - 11.5% (7.1% OF TOTAL
 INVESTMENTS)
$ 380 North Carolina Capital Facilities Financing Agency, Revenue 10/11 at 100.00 AA+ $ 387,885
 Bonds, Duke University, Series 2001A, 5.125%, 10/01/26
 125 North Carolina Capital Facilities Financing Agency, Revenue 9/11 at 101.00 N/R 132,731
 Bonds, High Point University, Series 2001, 5.125%, 9/01/18
 520 University of North Carolina System, Pooled Revenue Refunding 10/12 at 100.00 A 560,123
 Bonds, Series 2002A, 5.375%, 4/01/17 - AMBAC Insured
 1,750 University of North Carolina, Chapel Hill, System Net Revenue 6/11 at 100.00 Aaa 1,812,213
 Bonds, Series 2001A, 5.000%, 12/01/25
 1,000 University of North Carolina, Chapel Hill, System Net Revenue No Opt. Call Aaa 1,067,880
 Bonds, Series 2002B, 5.000%, 12/01/11
------------------------------------------------------------------------------------------------------------------------------------
 3,775 Total Education and Civic Organizations 3,960,832
------------------------------------------------------------------------------------------------------------------------------------
 HEALTH CARE - 18.9% (11.6% OF TOTAL INVESTMENTS)
 555 Albemarle Hospital Authority, North Carolina, Health Care 10/17 at 100.00 N/R 433,128
 Facilities Revenue Bonds, Series 2007, 5.250%, 10/01/38
 950 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 957,733
 Carolinas HealthCare System Revenue Bonds, Series 2008A,
 5.000%, 1/15/47
 250 Johnston Memorial Hospital Authority, North Carolina, 4/18 at 100.00 AAA 258,253
 Mortgage Revenue Bonds, Johnston Memorial Hospital
 Project, Series 2008, 5.250%, 10/01/36 - AGM Insured
 30 New Hanover County, North Carolina, Hospital Revenue Bonds, 10/19 at 100.00 AAA 31,114
 New Hanover Regional Medical Center, Series 2006B, 5.125%,
 10/01/31 - AGM Insured
 280 North Carolina Medical Care Commission, Health Care 10/14 at 100.00 AAA 289,934
 Facilities Revenue Bonds, WakeMed, Series 2009A, 5.625%,
 10/01/38 - AGC Insured
 1,110 North Carolina Medical Care Commission, Healthcare Facilities 1/12 at 100.00 A+ 1,146,230
 Revenue Bonds, Union Regional Medical Center, Series
 2002A, 5.250%, 1/01/15
 980 North Carolina Medical Care Commission, Healthcare Revenue 11/10 at 100.00 A+ 980,686
 Bonds, Carolina Medicorp, Series 1996, 5.250%, 5/01/26
 1,500 North Carolina Medical Care Commission, Hospital Revenue 6/12 at 101.00 A 1,517,025
 Bonds, Southeastern Regional Medical Center, Series 2002,
 5.250%, 6/01/22
 500 North Carolina Medical Care Commission, Hospital Revenue 11/17 at 100.00 A- 511,810
 Bonds, Wilson Medical Center, Series 2007, 5.000%,
 11/01/20
 250 North Carolina Medical Care Commission, Revenue Bonds, Blue 1/15 at 100.00 A 250,598
 Ridge Healthcare System, Series 2005, 5.000%, 1/01/33 -
 FGIC Insured
 150 Northern Hospital District of Surry County, North Carolina, 4/18 at 100.00 BBB 152,961
 Health Care Facilities Revenue Bonds, Series 2008, 6.250%,
 10/01/38
------------------------------------------------------------------------------------------------------------------------------------
 6,555 Total Health Care 6,529,472
------------------------------------------------------------------------------------------------------------------------------------
 HOUSING/SINGLE FAMILY - 4.4% (2.7% OF TOTAL INVESTMENTS)
 375 North Carolina Housing Finance Agency, Home Ownership Revenue 7/10 at 100.00 AA 375,113
 Bonds, 1998 Trust Agreement, Series 10A, 5.400%, 7/01/32 -
 AMBAC Insured (Alternative Minimum Tax)
 590 North Carolina Housing Finance Agency, Home Ownership Revenue 7/10 at 100.00 AA 590,301
 Bonds, 1998 Trust Agreement, Series 5A, 5.625%, 7/01/30
 (Alternative Minimum Tax)
 250 North Carolina Housing Finance Agency, Home Ownership Revenue 1/17 at 100.00 AA 244,358
 Bonds, Series 2007-29A, 4.800%, 7/01/33 (Alternative
 Minimum Tax)
 330 North Carolina Housing Finance Agency, Home Ownership Revenue 7/16 at 100.00 AA 324,156
 Bonds, Series 25-A, 4.900%, 7/01/37 (Alternative Minimum
 Tax)
------------------------------------------------------------------------------------------------------------------------------------
 1,545 Total Housing/Single Family 1,533,928
------------------------------------------------------------------------------------------------------------------------------------
 LONG-TERM CARE - 1.8% (1.1% 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 192,790
 300 5.500%, 10/01/31 10/16 at 100.00 N/R 279,666

Nuveen Investments 43

NRB | Nuveen North Carolina Dividend Advantage Municipal Fund (continued) | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 LONG-TERM CARE (continued)
$ 150 North Carolina Medical Care Commission, Revenue Bonds, Pines 1/16 at 100.00 N/R $ 139,952
 at Davidson, Series 2006A, 5.000%, 1/01/36
------------------------------------------------------------------------------------------------------------------------------------
 650 Total Long-Term Care 612,408
------------------------------------------------------------------------------------------------------------------------------------
 MATERIALS - 1.0% (0.6% OF TOTAL INVESTMENTS)
 400 Columbus County Industrial Facilities and Pollution Control 3/17 at 100.00 BBB 346,532
 Financing Authority, North Carolina, Environmental
 Improvement Revenue Bonds, International Paper Company
 Project, Series 2007A, 4.625%, 3/01/27
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/GENERAL - 11.4% (7.0% OF TOTAL INVESTMENTS)
 1,000 Durham, North Carolina, General Obligation Bonds, Series 4/17 at 100.00 AAA 1,132,750
 2007, 5.000%, 4/01/21 North Carolina, General Obligation
 Bonds, Series 2004A:
 1,000 5.000%, 3/01/18 3/14 at 100.00 AAA 1,124,180
 1,000 5.000%, 3/01/22 3/14 at 100.00 AAA 1,101,200
 550 Wake County, North Carolina, Limited Obligation Bonds, Series 1/20 at 100.00 AA+ 583,308
 2010, 5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
 3,550 Total Tax Obligation/General 3,941,438
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/LIMITED - 26.7% (16.4% OF TOTAL INVESTMENTS)
 1,400 Charlotte, North Carolina, Certificates of Participation, 6/13 at 100.00 AA+ 1,472,086
 Governmental Facilities Projects, Series 2003G, 5.375%,
 6/01/26 (UB)
 200 Charlotte, North Carolina, Certificates of Participation, 6/19 at 100.00 AA+ 209,754
 Nascar Hall of Fame, Series 2009C, 5.000%, 6/01/39
 305 Charlotte, North Carolina, Certificates of Participation, 6/18 at 100.00 AA+ 319,335
 Transit Projects Phase 2, Series 2008A, 5.000%, 6/01/33
 160 Craven County, North Carolina, Certificates of Participation, 6/17 at 100.00 AA- 170,925
 Series 2007, 5.000%, 6/01/23 - NPFG Insured
 1,870 Dare County, North Carolina, Certificates of Participation, 12/12 at 100.00 AA- 2,049,670
 Series 2002, 5.250%, 6/01/15 - AMBAC Insured
 1,250 Davidson County, North Carolina, Certificates of 6/14 at 100.00 Aa3 1,316,413
 Participation, Series 2004, 5.250%, 6/01/21 - AMBAC
 Insured
 1,390 Durham, North Carolina, Certificates of Participation, Series 6/15 at 100.00 AA+ 1,449,951
 2005B, 5.000%, 6/01/25
 50 Harnett County, North Carolina, Certificates of 6/19 at 100.00 AAA 53,052
 Participation, Series 2009, 5.000%, 6/01/28 - AGC Insured
 525 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 113,148
 Revenue Bonds, First Subordinate Series 2010A, 0.000%,
 8/01/35
 470 Raleigh, North Carolina, Certificates of Participation, 6/14 at 100.00 AA+ 502,190
 Downtown Improvement Project, Series 2004B, 5.000%,
 6/01/20
 170 Raleigh, North Carolina, Certificates of Participation, 2/17 at 100.00 AA+ 180,889
 Series 2007, 5.000%, 2/01/27
 150 Rutherford County, North Carolina, Certificates of 12/17 at 100.00 AAA 159,146
 Participation, Series 2007, 5.000%, 12/01/27 - AGM Insured
 700 Sampson County, North Carolina, Certificates of 6/17 at 100.00 AAA 721,686
 Participation, Series 2006, 5.000%, 6/01/34 - AGM Insured
 (UB)
 250 Wilmington, North Carolina, Certificates of Participation, 6/18 at 100.00 AA 265,930
 Series 2008A, 5.000%, 6/01/29
 250 Wilson County, North Carolina, Certificates of Participation, 4/17 at 100.00 Aa3 259,963
 School Facilities Project, Series 2007, 5.000%, 4/01/25 -
 AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
 9,140 Total Tax Obligation/Limited 9,244,138
------------------------------------------------------------------------------------------------------------------------------------
 TRANSPORTATION - 11.9% (7.3% OF TOTAL INVESTMENTS)
 1,000 Charlotte, North Carolina, Airport Revenue Bonds, Charlotte 7/20 at 100.00 A+ 1,023,040
 Douglas International Refunding Series 2010A, 5.000%,
 7/01/39
 360 North Carolina State Ports Authority, Port Facilities Revenue 2/20 at 100.00 A3 368,168
 Bonds, Senior Lien Series 2010A, 5.250%, 2/01/40
 250 North Carolina Turnpike Authority, Triangle Expressway System 1/19 at 100.00 AAA 269,283
 Revenue Bonds, Series 2009A, 5.750%, 1/01/39 - AGC Insured

44 Nuveen Investments

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 > 
 TRANSPORTATION (continued)
$ 2,170 North Carolina Turnpike Authority, Triangle Expressway System No Opt. Call AAA $ 576,265
 Senior Lien Revenue Bonds, Series 2009B, 0.000%, 1/01/34 -
 AGC Insured
 300 Piedmont Triad Airport Authority, North Carolina, Airport 7/15 at 100.00 A2 319,299
 Revenue Bonds, Series 2005A, 5.000%, 7/01/20 - SYNCORA GTY
 Insured
 1,530 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aa3 1,572,442
 Revenue Bonds, Series 2001A, 5.250%, 11/01/18 - FGIC
 Insured
------------------------------------------------------------------------------------------------------------------------------------
 5,610 Total Transportation 4,128,497
------------------------------------------------------------------------------------------------------------------------------------
 U.S. GUARANTEED - 13.4% (8.3% OF TOTAL INVESTMENTS) (4)
 100 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AAA 115,274
 Healthcare System Revenue Bonds, DBA Carolinas Healthcare
 System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded
 1/15/15)
 500 Greensboro, North Carolina, Combined Enterprise System 6/11 at 101.00 AAA 529,050
 Revenue Bonds, Series 2001A, 5.125%, 6/01/21 (Pre-refunded
 6/01/11)
 620 North Carolina Capital Facilities Financing Agency, Revenue 10/11 at 100.00 AAA 658,508
 Bonds, Duke University, Series 2001A, 5.125%, 10/01/26
 (Pre-refunded 10/01/11)
 800 North Carolina Medical Care Commission, Health System Revenue 10/11 at 101.00 AA (4) 858,632
 Bonds, Mission St. Joseph's Health System, Series 2001,
 5.250%, 10/01/31 (Pre-refunded 10/01/11)
 300 North Carolina Medical Care Commission, Revenue Bonds, 11/14 at 100.00 Aa3 (4) 346,809
 Northeast Medical Center, Series 2004, 5.000%, 11/01/24
 (Pre-refunded 11/01/14)
 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) 1,129,415
 910 5.375%, 4/01/17 (Pre-refunded 10/01/12) - AMBAC Insured 10/12 at 100.00 N/R (4) 1,006,041
------------------------------------------------------------------------------------------------------------------------------------
 4,250 Total U.S. Guaranteed 4,643,729
------------------------------------------------------------------------------------------------------------------------------------
 UTILITIES - 18.0% (11.1% OF TOTAL INVESTMENTS)
 Greenville, North Carolina, Combined Enterprise System
 Revenue Bonds, Series 2001:
 1,000 5.250%, 9/01/20 - AGM Insured 9/11 at 101.00 AAA 1,058,180
 500 5.250%, 9/01/21 - AGM Insured 9/11 at 101.00 AAA 525,900
 500 North Carolina Eastern Municipal Power Agency, Power System 1/16 at 100.00 AA 534,895
 Revenue Bonds, Series 2005, 5.250%, 1/01/20 - AMBAC
 Insured
 2,500 North Carolina Eastern Municipal Power Agency, Power System 7/10 at 100.00 Baa1 2,504,350
 Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/17 -
 FGIC Insured
 25 North Carolina Municipal Power Agency 1, Catawba Electric 1/19 at 100.00 A 25,900
 Revenue Bonds, Refunding Series 2009A, 5.000%, 1/01/30
 1,500 Wake County Industrial Facilities and Pollution Control 2/12 at 101.00 A1 1,590,795
 Financing Authority, North Carolina, Revenue Refunding
 Bonds, Carolina Power and Light Company, Series 2002,
 5.375%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
 6,025 Total Utilities 6,240,020
------------------------------------------------------------------------------------------------------------------------------------
 WATER AND SEWER - 43.6% (26.8% OF TOTAL INVESTMENTS)
 100 Brunswick County, North Carolina, Enterprise System Revenue 4/18 at 100.00 AAA 104,952
 Bonds, Series 2008A, 5.000%, 4/01/31 - AGM Insured
 505 Cape Fear Public Utility Authority, North Carolina, Water & 8/18 at 100.00 AA 534,654
 Sewer System Revenue Bonds, Series 2008, 5.000%, 8/01/35
 2,250 Charlotte, North Carolina, Water and Sewerage System Revenue 6/11 at 101.00 AAA 2,338,875
 Bonds, Series 2001, 5.125%, 6/01/26
 1,000 Charlotte, North Carolina, Water and Sewerage System Revenue 7/18 at 100.00 AAA 1,066,019
 Bonds, Series 2008, 5.000%, 7/01/38
 500 Greensboro, North Carolina, Combined Enterprise System 6/15 at 100.00 AAA 536,909
 Revenue Bonds, Series 2005A, 5.000%, 6/01/25
 700 Oak Island, North Carolina, Enterprise System Revenue Bonds, 6/19 at 100.00 AAA 767,822
 Series 2009A, 6.000%, 6/01/34 - AGC Insured
 400 Onslow County, North Carolina, Combined Enterprise System 6/14 at 100.00 A 420,391
 Revenue Bonds, Series 2004B, 5.000%, 6/01/23 - SYNCORA GTY
 Insured

Nuveen Investments 45

NRB | Nuveen North Carolina Dividend Advantage Municipal Fund (continued) | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 WATER AND SEWER (continued)
 Raleigh, North Carolina, Combined Enterprise System Revenue
 Bonds, Series 2006A:
$ 4,440 5.000%, 3/01/31 (UB) 3/16 at 100.00 AAA $ 4,716,523
 3,000 5.000%, 3/01/36 (UB) 3/16 at 100.00 AAA 3,150,390
 5 Raleigh, North Carolina, Combined Enterprise System Revenue 3/16 at 100.00 AAA 5,752
 Bonds, Series 2006A, Residuals Series II-R-645-2, 13.564%,
 3/01/36 (IF)
 1,385 Winston-Salem, North Carolina, Water and Sewer System Revenue 6/17 at 100.00 AAA 1,458,099
 Bonds, Series 2007A, 5.000%, 6/01/37 (UB)
------------------------------------------------------------------------------------------------------------------------------------
 14,285 Total Water and Sewer 15,100,386
------------------------------------------------------------------------------------------------------------------------------------
$ 55,785 Total Investments (cost $54,044,704) - 162.6% 56,281,380
===============---------------------------------------------------------------------------------------------------------------------
 Floating Rate Obligations - (20.7)% (7,160,000)
 ------------------------------------------------------------------------------------------------------------------
 MuniFund Term Preferred Shares, at Liquidation Value - (48.0)% (5) (16,600,000)
 ------------------------------------------------------------------------------------------------------------------
 Other Assets Less Liabilities - 6.1% 2,095,577
 ------------------------------------------------------------------------------------------------------------------
 Net Assets Applicable to Common Shares - 100% $ 34,616,957
 ==================================================================================================================

(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 (not covered by the report of independent
 registered public accounting firm): 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 (not covered by the report of independent registered public
 accounting firm): 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.

(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 29.5%.

N/R Not rated.

(IF) Inverse floating rate investment.

(UB) Underlying bond of an inverse floating rate trust reflected as a financing
 transaction. See Notes to Financial Statements, Footnote 1 - Inverse
 Floating Rate Securities for more information.

See accompanying notes to financial statements.

46 Nuveen Investments

NNO | Nuveen North Carolina Dividend Advantage Municipal Fund 2 | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 EDUCATION AND CIVIC ORGANIZATIONS - 13.8% (8.8% OF TOTAL
 INVESTMENTS)
 Appalachian State University, North Carolina, Housing and
 Student Center System Revenue Refunding Bonds, Series 2002:
$ 1,040 5.000%, 7/15/14 - NPFG Insured 7/12 at 100.00 Aa3 $ 1,121,546
 1,000 5.000%, 7/15/15 - NPFG Insured 7/12 at 100.00 Aa3 1,056,200
 North Carolina Capital Facilities Financing Agency, Revenue
 Bonds, Duke University, Series 2001A:
 715 5.125%, 10/01/26 10/11 at 100.00 AA+ 729,836
 380 5.125%, 10/01/41 10/11 at 100.00 AA+ 384,404
 500 North Carolina Capital Facilities Financing Agency, Revenue 4/13 at 100.00 N/R 471,390
 Bonds, Johnson and Wales University, Series 2003A, 5.000%,
 4/01/33 - SYNCORA GTY Insured
 130 University of North Carolina System, Pooled Revenue Bonds, 10/12 at 100.00 N/R 138,736
 Series 2002B, 5.375%, 4/01/19 - AMBAC Insured
 1,000 University of North Carolina System, Pooled Revenue Bonds, 4/15 at 100.00 A 1,054,060
 Series 2005A, 5.000%, 4/01/22 - AMBAC Insured
 500 University of North Carolina Wilmington, Certificates of 6/16 at 100.00 A 535,510
 Participation, Student Housing Project Revenue Bonds,
 Series 2006, 5.000%, 6/01/21 - FGIC Insured
 1,500 University of North Carolina, Chapel Hill, System Net Revenue No Opt. Call Aaa 1,601,820
 Bonds, Series 2002B, 5.000%, 12/01/11
 250 University of North Carolina, Charlotte, Certificates of 3/15 at 100.00 A 265,133
 Participation, Student Housing Project, Series 2005,
 5.000%, 3/01/21 - AMBAC Insured
 400 University of North Carolina, Greensboro, General Revenue 4/11 at 101.00 AAA 420,776
 Refunding Bonds, Series 2002B, 5.375%, 4/01/17 - AGM
 Insured
------------------------------------------------------------------------------------------------------------------------------------
 7,415 Total Education and Civic Organizations 7,779,411
------------------------------------------------------------------------------------------------------------------------------------
 HEALTH CARE - 25.2% (16.1% OF TOTAL INVESTMENTS)
 1,015 Albemarle Hospital Authority, North Carolina, Health Care 10/17 at 100.00 N/R 792,116
 Facilities Revenue Bonds, Series 2007, 5.250%, 10/01/38
 1,000 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 1,008,140
 Carolinas HealthCare System Revenue Bonds, Series 2008A,
 5.000%, 1/15/47
 1,640 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA- 1,648,823
 Healthcare System Revenue Bonds, Carolinas Healthcare
 System, Series 2001A, 5.000%, 1/15/31
 500 Johnston Memorial Hospital Authority, North Carolina, 4/18 at 100.00 AAA 516,505
 Mortgage Revenue Bonds, Johnston Memorial Hospital
 Project, Series 2008, 5.250%, 10/01/36 - AGM Insured
 120 New Hanover County, North Carolina, Hospital Revenue Bonds, 10/19 at 100.00 AAA 124,456
 New Hanover Regional Medical Center, Series 2006B, 5.125%,
 10/01/31 - AGM Insured
 455 North Carolina Medical Care Commission, Health Care 10/14 at 100.00 AAA 471,143
 Facilities Revenue Bonds, WakeMed, Series 2009A, 5.625%,
 10/01/38 - AGC Insured
 2,000 North Carolina Medical Care Commission, Healthcare Facilities 11/13 at 100.00 A+ 2,070,480
 Revenue Bonds, Novant Health Obligated Group, Series
 2003A, 5.000%, 11/01/20
 1,005 North Carolina Medical Care Commission, Healthcare Facilities 1/12 at 100.00 A+ 1,049,280
 Revenue Bonds, Union Regional Medical Center, Series
 2002A, 5.250%, 1/01/13
 North Carolina Medical Care Commission, Hospital Revenue
 Bonds, Southeastern Regional Medical Center, Series 2002:
 1,000 5.500%, 6/01/15 6/12 at 101.00 A 1,048,640
 2,100 5.250%, 6/01/22 6/12 at 101.00 A 2,123,835
 925 North Carolina Medical Care Commission, Hospital Revenue 11/17 at 100.00 A- 899,794
 Bonds, Wilson Medical Center, Series 2007, 5.000%,
 11/01/27
 1,250 North Carolina Medical Care Commission, Revenue Bonds, Blue 1/15 at 100.00 A 1,252,988
 Ridge Healthcare System, Series 2005, 5.000%, 1/01/33 -
 FGIC Insured
 North Carolina Medical Care Commission, Revenue Bonds,
 Cleveland County Healthcare System, Series 2004A:
 595 5.250%, 7/01/20 - AMBAC Insured 7/14 at 100.00 A 614,177
 500 5.250%, 7/01/22 - AMBAC Insured 7/14 at 100.00 A 513,100
 150 Northern Hospital District of Surry County, North Carolina, 4/18 at 100.00 BBB 152,961
 Health Care Facilities Revenue Bonds, Series 2008, 6.250%,
 10/01/38
------------------------------------------------------------------------------------------------------------------------------------
 14,255 Total Health Care 14,286,438
------------------------------------------------------------------------------------------------------------------------------------

Nuveen Investments 47

NNO | Nuveen North Carolina Dividend Advantage Municipal Fund 2 (continued) | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 HOUSING/SINGLE FAMILY - 3.7% (2.3% OF TOTAL INVESTMENTS)
$ 325 North Carolina Housing Finance Agency, Home Ownership Revenue 7/10 at 100.00 AA $ 325,098
 Bonds, 1998 Trust Agreement, Series 10A, 5.400%, 7/01/32 -
 AMBAC Insured (Alternative Minimum Tax)
 North Carolina Housing Finance Agency, Home Ownership Revenue
 Bonds, Series 13A:
 615 4.700%, 7/01/12 (Alternative Minimum Tax) 7/11 at 100.00 AA 626,562
 620 4.850%, 7/01/13 (Alternative Minimum Tax) 7/11 at 100.00 AA 630,838
 510 North Carolina Housing Finance Agency, Home Ownership Revenue 7/16 at 100.00 AA 500,968
 Bonds, Series 25-A, 4.900%, 7/01/37 (Alternative Minimum
 Tax)
------------------------------------------------------------------------------------------------------------------------------------
 2,070 Total Housing/Single Family 2,083,466
------------------------------------------------------------------------------------------------------------------------------------
 LONG-TERM CARE - 1.7% (1.1% OF TOTAL INVESTMENTS)
 North Carolina Medical Care Commission, Healthcare Facilities
 Revenue Bonds, Presbyterian Homes, Series 2006:
 250 5.400%, 10/01/27 10/16 at 100.00 N/R 240,988
 600 5.500%, 10/01/31 10/16 at 100.00 N/R 559,332
 185 North Carolina Medical Care Commission, Revenue Bonds, Pines 1/16 at 100.00 N/R 172,607
 at Davidson, Series 2006A, 5.000%, 1/01/36
------------------------------------------------------------------------------------------------------------------------------------
 1,035 Total Long-Term Care 972,927
------------------------------------------------------------------------------------------------------------------------------------
 MATERIALS - 2.4% (1.5% OF TOTAL INVESTMENTS)
 300 Columbus County Industrial Facilities and Pollution Control 3/17 at 100.00 BBB 259,899
 Financing Authority, North Carolina, Environmental
 Improvement Revenue Bonds, International Paper Company
 Project, Series 2007A, 4.625%, 3/01/27
 1,100 Northampton County Industrial Facilities and Pollution 2/11 at 101.00 BBB 1,110,923
 Control Financing Authority, North Carolina, Environmental
 Improvement Revenue Bonds, International Paper Company,
 Series 2001A, 6.200%, 2/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
 1,400 Total Materials 1,370,822
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/GENERAL - 9.7% (6.2% OF TOTAL INVESTMENTS)
 1,475 Durham, North Carolina, General Obligation Bonds, Series 4/17 at 100.00 AAA 1,659,095
 2007, 5.000%, 4/01/22
 1,050 Forsyth County, North Carolina, General Obligation Bonds, 4/20 at 100.00 AA+ 1,136,898
 Limited Obligation Series 2009, 5.000%, 4/01/30
 500 North Carolina, General Obligation Bonds, Series 2004A, 3/14 at 100.00 AAA 550,600
 5.000%, 3/01/22
 2,000 Wake County, North Carolina, Limited Obligation Bonds, Series 1/20 at 100.00 AA+ 2,121,120
 2010, 5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
 5,025 Total Tax Obligation/General 5,467,713
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/LIMITED - 35.6% (22.7% OF TOTAL INVESTMENTS)
 30 Cabarrus County, North Carolina, Certificates of 2/13 at 100.00 AA 32,222
 Participation, Series 2002, 5.250%, 2/01/16
 1,750 Charlotte, North Carolina, Certificates of Participation, 6/13 at 100.00 AA+ 1,811,425
 Governmental Facilities Projects, Series 2003G, 5.000%,
 6/01/28
 400 Charlotte, North Carolina, Certificates of Participation, 6/19 at 100.00 AA+ 419,508
 Nascar Hall of Fame, Series 2009C, 5.000%, 6/01/39
 575 Charlotte, North Carolina, Certificates of Participation, 6/18 at 100.00 AA+ 602,025
 Transit Projects Phase 2, Series 2008A, 5.000%, 6/01/33
 1,850 Charlotte, North Carolina, Storm Water Fee Revenue Bonds, 6/12 at 101.00 AAA 2,013,503
 Series 2002, 5.250%, 6/01/18
 800 Craven County, North Carolina, Certificates of Participation, 6/17 at 100.00 AA- 837,024
 Series 2007, 5.000%, 6/01/27 - NPFG Insured
 500 Harnett County, North Carolina, Certificates of 6/19 at 100.00 AAA 527,055
 Participation, Series 2009, 5.000%, 6/01/29 - AGC Insured
 Hartnett County, North Carolina, Certificates of
 Participation, Series 2002:
 1,000 5.250%, 12/01/15 - AGM Insured 12/12 at 101.00 AAA 1,102,080
 2,025 5.375%, 12/01/16 - AGM Insured 12/12 at 101.00 AAA 2,237,382
 715 Lee County, North Carolina, Certificates of Participation, 4/14 at 100.00 AAA 764,886
 Public Schools and Community College, Series 2004, 5.250%,
 4/01/20 - AGM Insured
 1,380 Pasquotank County, North Carolina, Certificates of 6/14 at 100.00 A 1,422,904
 Participation, Series 2004, 5.000%, 6/01/25 - NPFG Insured

48 Nuveen Investments

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/LIMITED (continued)
$ 2,070 Pitt County, North Carolina, Certificates of Participation, 4/14 at 100.00 AA- $ 2,108,212
 School Facilities Project, Series 2004B, 5.000%, 4/01/29 -
 AMBAC Insured
 2,625 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 565,740
 Revenue Bonds, First Subordinate Series 2010A, 0.000%,
 8/01/35
 Raleigh, North Carolina, Certificates of Participation,
 Downtown Improvement Project, Series 2004B:
 805 5.000%, 6/01/20 6/14 at 100.00 AA+ 860,134
 1,310 5.000%, 6/01/21 6/14 at 100.00 AA+ 1,393,067
 115 Raleigh, North Carolina, Certificates of Participation, 2/17 at 100.00 AA+ 122,366
 Series 2007, 5.000%, 2/01/27
 1,000 Randolph County, North Carolina, Certificates of 6/14 at 102.00 AAA 1,080,600
 Participation, Series 2004, 5.000%, 6/01/20 - AGM Insured
 100 Rutherford County, North Carolina, Certificates of 12/17 at 100.00 AAA 106,097
 Participation, Series 2007, 5.000%, 12/01/27 - AGM Insured
 1,150 Sampson County, North Carolina, Certificates of 6/17 at 100.00 AAA 1,185,627
 Participation, Series 2006, 5.000%, 6/01/34 - AGM Insured
 (UB)
 500 Wilmington, North Carolina, Certificates of Participation, 6/18 at 100.00 AA 531,860
 Series 2008A, 5.000%, 6/01/29
 400 Wilson County, North Carolina, Certificates of Participation, 4/17 at 100.00 Aa3 415,940
 School Facilities Project, Series 2007, 5.000%, 4/01/25 -
 AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
 21,100 Total Tax Obligation/Limited 20,139,657
------------------------------------------------------------------------------------------------------------------------------------
 TRANSPORTATION - 21.6% (13.8% OF TOTAL INVESTMENTS)
 1,000 Charlotte, North Carolina, Airport Revenue Bonds, Charlotte 7/20 at 100.00 A+ 1,023,040
 Douglas International Refunding Series 2010A, 5.000%,
 7/01/39
 1,935 Charlotte, North Carolina, Airport Revenue Bonds, Series 7/14 at 100.00 A+ 1,961,335
 2004A, 5.000%, 7/01/34 - NPFG Insured
 660 North Carolina State Ports Authority, Port Facilities Revenue 2/20 at 100.00 A3 674,975
 Bonds, Senior Lien Series 2010A, 5.250%, 2/01/40
 North Carolina Turnpike Authority, Triangle Expressway System
 Revenue Bonds, Series 2009A:
 90 5.375%, 1/01/26 - AGC Insured 1/19 at 100.00 AAA 97,557
 105 5.500%, 1/01/29 - AGC Insured 1/19 at 100.00 AAA 113,575
 430 5.750%, 1/01/39 - AGC Insured 1/19 at 100.00 AAA 463,166
 North Carolina Turnpike Authority, Triangle Expressway System
 Senior Lien Revenue Bonds, Series 2009B:
 150 0.000%, 1/01/31 - AGC Insured No Opt. Call AAA 47,529
 100 0.000%, 1/01/33 - AGC Insured No Opt. Call AAA 28,215
 50 0.000%, 1/01/35 - AGC Insured No Opt. Call AAA 12,463
 5,600 0.000%, 1/01/37 - AGC Insured No Opt. Call AAA 1,230,656
 350 0.000%, 1/01/38 - AGC Insured No Opt. Call AAA 72,461
 435 Piedmont Triad Airport Authority, North Carolina, Airport 7/15 at 100.00 A2 462,984
 Revenue Bonds, Series 2005A, 5.000%, 7/01/20 - SYNCORA GTY
 Insured
 Raleigh Durham Airport Authority, North Carolina, Airport
 Revenue Bonds, Series 2001A:
 1,000 5.250%, 11/01/15 - FGIC Insured 5/11 at 101.00 Aa3 1,035,730
 2,320 5.250%, 11/01/16 - FGIC Insured 5/11 at 101.00 Aa3 2,393,776
 2,230 5.250%, 11/01/17 - FGIC Insured 5/11 at 101.00 Aa3 2,295,897
 270 University of North Carolina, Charlotte, Parking System 1/12 at 101.00 A1 291,036
 Revenue Bonds, Series 2002, 5.000%, 1/01/20 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
 16,725 Total Transportation 12,204,395
------------------------------------------------------------------------------------------------------------------------------------
 U.S. GUARANTEED - 8.5% (5.4% OF TOTAL INVESTMENTS) (4)
 490 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 Aa3 (4) 509,340
 Healthcare System Revenue Bonds, Carolinas Healthcare
 System, Series 2001A, 5.000%, 1/15/31 (Pre-refunded
 1/15/11)
 200 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AAA 230,548
 Healthcare System Revenue Bonds, DBA Carolinas Healthcare
 System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded
 1/15/15)
 370 North Carolina Medical Care Commission, Health System Revenue 10/11 at 101.00 AA (4) 397,117
 Bonds, Mission St. Joseph's Health System, Series 2001,
 5.250%, 10/01/31 (Pre-refunded 10/01/11)
 500 North Carolina Medical Care Commission, Revenue Bonds, 11/14 at 100.00 Aa3 (4) 578,015
 Northeast Medical Center, Series 2004, 5.000%, 11/01/24
 (Pre-refunded 11/01/14)
 Raleigh, North Carolina, Combined Enterprise System Revenue
 Bonds, Series 2004:
 1,000 5.000%, 3/01/21 (Pre-refunded 3/01/14) 3/14 at 100.00 AAA 1,135,070
 1,250 5.000%, 3/01/22 (Pre-refunded 3/01/14) 3/14 at 100.00 AAA 1,418,838

Nuveen Investments 49

NNO | Nuveen North Carolina Dividend Advantage Municipal Fund 2 (continued) | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 U.S. GUARANTEED (4) (continued)
$ 505 University of North Carolina System, Pooled Revenue Refunding 10/12 at 100.00 N/R (4) $ 558,298
 Bonds, Series 2002A, 5.375%, 4/01/19 (Pre-refunded
 10/01/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
 4,315 Total U.S. Guaranteed 4,827,226
------------------------------------------------------------------------------------------------------------------------------------
 UTILITIES - 10.7% (6.8% OF TOTAL INVESTMENTS)
 500 North Carolina Eastern Municipal Power Agency, Power System 1/16 at 100.00 AA 534,895
 Revenue Bonds, Series 2005, 5.250%, 1/01/20 - AMBAC
 Insured
 North Carolina Eastern Municipal Power Agency, Power System
 Revenue Refunding Bonds, Series 1993B:
 2,500 5.500%, 1/01/17 - FGIC Insured 7/10 at 100.00 Baa1 2,504,350
 25 5.500%, 1/01/21 7/10 at 100.00 A- 25,031
 225 North Carolina Municipal Power Agency 1, Catawba Electric 1/19 at 100.00 A 233,096
 Revenue Bonds, Refunding Series 2009A, 5.000%, 1/01/30
 2,600 Wake County Industrial Facilities and Pollution Control 2/12 at 101.00 A1 2,757,378
 Financing Authority, North Carolina, Revenue Refunding
 Bonds, Carolina Power and Light Company, Series 2002,
 5.375%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
 5,850 Total Utilities 6,054,750
------------------------------------------------------------------------------------------------------------------------------------
 WATER AND SEWER - 23.9% (15.3% OF TOTAL INVESTMENTS)
 500 Brunswick County, North Carolina, Enterprise System Revenue 4/18 at 100.00 AAA 524,760
 Bonds, Series 2008A, 5.000%, 4/01/31 - AGM Insured
 500 Cape Fear Public Utility Authority, North Carolina, Water & 8/18 at 100.00 AA 529,360
 Sewer System Revenue Bonds, Series 2008, 5.000%, 8/01/35
 2,520 Charlotte, North Carolina, Water and Sewerage System Revenue No Opt. Call AAA 2,852,236
 Bonds, Series 2002A, 5.250%, 7/01/13
 1,000 Durham County, North Carolina, Enterprise System Revenue 6/13 at 100.00 AA 1,046,699
 Bonds, Series 2002, 5.000%, 6/01/23 - NPFG Insured
 700 Oak Island, North Carolina, Enterprise System Revenue Bonds, 6/19 at 100.00 AAA 767,822
 Series 2009A, 6.000%, 6/01/34 - AGC Insured
 Raleigh, North Carolina, Combined Enterprise System Revenue
 Bonds, Series 2006A:
 3,095 5.000%, 3/01/31 (UB) 3/16 at 100.00 AAA 3,287,757
 975 5.000%, 3/01/36 (UB) 3/16 at 100.00 AAA 1,023,877
 40 Raleigh, North Carolina, Combined Enterprise System Revenue 3/16 at 100.00 AAA 47,474
 Bonds, Series 2006A, Residuals Series II-R-645-2, 13.274%,
 3/01/31 (IF)
 1,000 Wilmington, North Carolina, Water and Sewer Revenue Bonds, 6/15 at 100.00 AAA 1,075,969
 Series 2005, 5.000%, 6/01/25 - AGM Insured
 2,275 Winston-Salem, North Carolina, Water and Sewer System Revenue 6/17 at 100.00 AAA 2,395,075
 Bonds, Series 2007A, 5.000%, 6/01/37 (UB)
------------------------------------------------------------------------------------------------------------------------------------
 12,605 Total Water and Sewer 13,551,029
------------------------------------------------------------------------------------------------------------------------------------
$ 91,795 Total Investments (cost $85,399,890) - 156.8% 88,737,834
===============---------------------------------------------------------------------------------------------------------------------
 Floating Rate Obligations - (8.5)% (4,805,000)
 ------------------------------------------------------------------------------------------------------------------
 MuniFund Term Preferred Shares, at Liquidation Value - (52.5)% (5) (29,700,000)
 ------------------------------------------------------------------------------------------------------------------
 Other Assets Less Liabilities - 4.2% 2,356,829
 ------------------------------------------------------------------------------------------------------------------
 Net Assets Applicable to Common Shares - 100% $ 56,589,663
 ==================================================================================================================

(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 (not covered by the report of independent
 registered public accounting firm): 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 (not covered by the report of independent registered public
 accounting firm): 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.

(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 33.5%.

N/R Not rated.

(IF) Inverse floating rate investment.

(UB) Underlying bond of an inverse floating rate trust reflected as a financing
 transaction. See Notes to Financial Statements, Footnote 1 - Inverse
 Floating Rate Securities for more information.

See accompanying notes to financial statements.

Nuveen Investments 50

NII | Nuveen North Carolina Dividend Advantage Municipal Fund 3 | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 CONSUMER STAPLES - 3.0% (1.9% OF TOTAL INVESTMENTS)
$ 2,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,747,520
 Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
 EDUCATION AND CIVIC ORGANIZATIONS - 2.9% (1.8% OF TOTAL
 INVESTMENTS)
 North Carolina Capital Facilities Financing Agency, Revenue
 Bonds, Duke University, Series 2001A:
 330 5.125%, 10/01/26 10/11 at 100.00 AA+ 336,848
 95 5.125%, 10/01/41 10/11 at 100.00 AA+ 96,101
 705 University of North Carolina System, Pooled Revenue Refunding 10/12 at 100.00 A 716,153
 Bonds, Series 2002A, 5.000%, 4/01/27 - AMBAC Insured
 500 University of North Carolina Wilmington, Certificates of 6/16 at 100.00 A 535,510
 Participation, Student Housing Project Revenue Bonds,
 Series 2006, 5.000%, 6/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
 1,630 Total Education and Civic Organizations 1,684,612
------------------------------------------------------------------------------------------------------------------------------------
 HEALTH CARE - 12.4% (7.8% OF TOTAL INVESTMENTS)
 695 Albemarle Hospital Authority, North Carolina, Health Care 10/17 at 100.00 N/R 637,829
 Facilities Revenue Bonds, Series 2007, 5.250%, 10/01/27
 1,200 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 1,209,768
 Carolinas HealthCare System Revenue Bonds, Series 2008A,
 5.000%, 1/15/47
 580 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA- 583,120
 Healthcare System Revenue Bonds, Carolinas Healthcare
 System, Series 2001A, 5.000%, 1/15/31
 500 Johnston Memorial Hospital Authority, North Carolina, 4/18 at 100.00 AAA 516,505
 Mortgage Revenue Bonds, Johnston Memorial Hospital
 Project, Series 2008, 5.250%, 10/01/36 - AGM Insured
 180 New Hanover County, North Carolina, Hospital Revenue Bonds, 10/19 at 100.00 AAA 186,683
 New Hanover Regional Medical Center, Series 2006B, 5.125%,
 10/01/31 - AGM Insured
 545 North Carolina Medical Care Commission, Health Care 10/14 at 100.00 AAA 564,337
 Facilities Revenue Bonds, WakeMed, Series 2009A, 5.625%,
 10/01/38 - AGC Insured
 2,000 North Carolina Medical Care Commission, Healthcare Facilities 11/13 at 100.00 A+ 2,092,040
 Revenue Bonds, Novant Health Obligated Group, Series
 2003A, 5.000%, 11/01/18
 1,000 North Carolina Medical Care Commission, Hospital Revenue 11/17 at 100.00 A- 972,750
 Bonds, Wilson Medical Center, Series 2007, 5.000%,
 11/01/27
 300 North Carolina Medical Care Commission, Revenue Bonds, Blue 1/15 at 100.00 A 300,717
 Ridge Healthcare System, Series 2005, 5.000%, 1/01/33 -
 FGIC Insured
 150 Northern Hospital District of Surry County, North Carolina, 4/18 at 100.00 BBB 152,961
 Health Care Facilities Revenue Bonds, Series 2008, 6.250%,
 10/01/38
------------------------------------------------------------------------------------------------------------------------------------
 7,150 Total Health Care 7,216,710
------------------------------------------------------------------------------------------------------------------------------------
 HOUSING/MULTIFAMILY - 1.8% (1.1% OF TOTAL INVESTMENTS)
 1,000 Mecklenburg County, North Carolina, FNMA Multifamily Housing 7/13 at 105.00 AAA 1,049,170
 Revenue Bonds, Little Rock Apartments, Series 2003,
 5.150%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
 HOUSING/SINGLE FAMILY - 2.7% (1.7% OF TOTAL INVESTMENTS)
 590 North Carolina Housing Finance Agency, Home Ownership Revenue 7/10 at 100.00 AA 590,301
 Bonds, 1998 Trust Agreement, Series 5A, 5.625%, 7/01/30
 (Alternative Minimum Tax)
 500 North Carolina Housing Finance Agency, Home Ownership Revenue 1/17 at 100.00 AA 488,715
 Bonds, Series 2007-29A, 4.800%, 7/01/33 (Alternative
 Minimum Tax)
 505 North Carolina Housing Finance Agency, Home Ownership Revenue 7/16 at 100.00 AA 496,056
 Bonds, Series 25-A, 4.900%, 7/01/37 (Alternative Minimum
 Tax)
------------------------------------------------------------------------------------------------------------------------------------
 1,595 Total Housing/Single Family 1,575,072
------------------------------------------------------------------------------------------------------------------------------------
 LONG-TERM CARE - 1.7% (1.1% OF TOTAL INVESTMENTS)
 North Carolina Medical Care Commission, Healthcare Facilities
 Revenue Bonds, Presbyterian Homes, Series 2006:
 250 5.400%, 10/01/27 10/16 at 100.00 N/R 240,988
 600 5.500%, 10/01/31 10/16 at 100.00 N/R 559,332

Nuveen Investments 51

NII | Nuveen North Carolina Dividend Advantage Municipal Fund 3 (continued) | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 LONG-TERM CARE (continued)
$ 190 North Carolina Medical Care Commission, Revenue Bonds, Pines 1/16 at 100.00 N/R $ 177,272
 at Davidson, Series 2006A, 5.000%, 1/01/36
------------------------------------------------------------------------------------------------------------------------------------
 1,040 Total Long-Term Care 977,592
------------------------------------------------------------------------------------------------------------------------------------
 MATERIALS - 0.3% (0.2% OF TOTAL INVESTMENTS)
 200 Columbus County Industrial Facilities and Pollution Control 3/17 at 100.00 BBB 173,266
 Financing Authority, North Carolina, Environmental
 Improvement Revenue Bonds, International Paper Company
 Project, Series 2007A, 4.625%, 3/01/27
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/GENERAL - 14.5% (9.2% OF TOTAL INVESTMENTS)
 3,900 Cary, North Carolina, General Obligation Water and Sewer 3/11 at 102.00 AAA 4,117,308
 Bonds, Series 2001, 5.000%, 3/01/20
 Lincoln County, North Carolina, General Obligation Bonds,
 Series 2002A:
 850 5.000%, 6/01/19 - FGIC Insured 6/12 at 101.00 AA- 909,126
 900 5.000%, 6/01/20 - FGIC Insured 6/12 at 101.00 AA- 961,164
 1,050 5.000%, 6/01/21 - FGIC Insured 6/12 at 101.00 AA- 1,115,888
 300 North Carolina, General Obligation Bonds, Series 2004A, 3/14 at 100.00 AAA 330,360
 5.000%, 3/01/22
 400 Raleigh, North Carolina, General Obligation Bonds, Series 6/12 at 100.00 AAA 434,644
 2002, 5.000%, 6/01/21
 550 Wake County, North Carolina, Limited Obligation Bonds, Series 1/20 at 100.00 AA+ 583,308
 2010, 5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
 7,950 Total Tax Obligation/General 8,451,798
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/LIMITED - 35.1% (22.1% OF TOTAL INVESTMENTS)
 1,800 Catawba County, North Carolina, Certificates of 6/14 at 100.00 Aa2 1,898,100
 Participation, Series 2004, 5.250%, 6/01/22 - NPFG Insured
 2,750 Charlotte, North Carolina, Certificates of Participation, 6/13 at 100.00 AA+ 2,822,105
 Governmental Facilities Projects, Series 2003G, 5.000%,
 6/01/33
 600 Charlotte, North Carolina, Certificates of Participation, 6/19 at 100.00 AA+ 629,262
 Nascar Hall of Fame, Series 2009C, 5.000%, 6/01/39
 575 Charlotte, North Carolina, Certificates of Participation, 6/18 at 100.00 AA+ 602,025
 Transit Projects Phase 2, Series 2008A, 5.000%, 6/01/33
 800 Craven County, North Carolina, Certificates of Participation, 6/17 at 100.00 AA- 837,024
 Series 2007, 5.000%, 6/01/27 - NPFG Insured
 3,000 Dare County, North Carolina, Certificates of Participation, 12/12 at 100.00 AA- 3,112,710
 Series 2002, 5.000%, 6/01/23 - AMBAC Insured
 200 Harnett County, North Carolina, Certificates of 6/19 at 100.00 AAA 212,206
 Participation, Series 2009, 5.000%, 6/01/28 - AGC Insured
 500 Lee County, North Carolina, Certificates of Participation, 4/14 at 100.00 AAA 534,885
 Public Schools and Community College, Series 2004, 5.250%,
 4/01/20 - AGM Insured
 200 Mecklenburg County, North Carolina, Certificates of No Opt. Call AA+ 214,376
 Participation, Series 2009A, 5.000%, 2/01/27
 1,000 North Carolina, Certificates of Participation, Repair and 6/14 at 100.00 AA+ 1,068,490
 Renovation Project, Series 2004B, 5.000%, 6/01/20
 2,625 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call A+ 565,740
 Revenue Bonds, First Subordinate Series 2010A, 0.000%,
 8/01/35
 565 Raleigh, North Carolina, Certificates of Participation, 2/17 at 100.00 AA+ 601,188
 Series 2007, 5.000%, 2/01/27
 2,000 Rutherford County, North Carolina, Certificates of 9/12 at 101.00 A1 2,103,200
 Participation, Series 2002, 5.000%, 9/01/21 - AMBAC
 Insured
 1,000 Rutherford County, North Carolina, Certificates of 12/17 at 100.00 AAA 1,060,970
 Participation, Series 2007, 5.000%, 12/01/27 - AGM Insured
 1,200 Sampson County, North Carolina, Certificates of 6/17 at 100.00 AAA 1,237,176
 Participation, Series 2006, 5.000%, 6/01/34 - AGM Insured
 (UB)
 1,785 Union County, North Carolina, Certificates of Participation, 6/13 at 101.00 Aa2 1,920,446
 Series 2003, 5.000%, 6/01/20 - AMBAC Insured
 500 Wilmington, North Carolina, Certificates of Participation, 6/18 at 100.00 AA 531,860
 Series 2008A, 5.000%, 6/01/29

52 Nuveen Investments

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 TAX OBLIGATION/LIMITED (continued)
$ 400 Wilson County, North Carolina, Certificates of Participation, 4/17 at 100.00 Aa3 $ 415,940
 School Facilities Project, Series 2007, 5.000%, 4/01/25 -
 AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
 21,500 Total Tax Obligation/Limited 20,367,703
------------------------------------------------------------------------------------------------------------------------------------
 TRANSPORTATION - 12.6% (7.9% OF TOTAL INVESTMENTS)
 500 Charlotte, North Carolina, Airport Revenue Bonds, Charlotte 7/20 at 100.00 A+ 511,520
 Douglas International Refunding Series 2010A, 5.000%,
 7/01/39
 660 North Carolina State Ports Authority, Port Facilities Revenue 2/20 at 100.00 A3 674,975
 Bonds, Senior Lien Series 2010A, 5.250%, 2/01/40
 North Carolina Turnpike Authority, Triangle Expressway System
 Revenue Bonds, Series 2009A:
 50 5.500%, 1/01/29 - AGC Insured 1/19 at 100.00 AAA 54,084
 400 5.750%, 1/01/39 - AGC Insured 1/19 at 100.00 AAA 430,852
 North Carolina Turnpike Authority, Triangle Expressway System
 Senior Lien Revenue Bonds, Series 2009B:
 2,195 0.000%, 1/01/35 - AGC Insured No Opt. Call AAA 547,104
 100 0.000%, 1/01/37 - AGC Insured No Opt. Call AAA 21,976
 300 0.000%, 1/01/38 - AGC Insured No Opt. Call AAA 62,109
 Raleigh Durham Airport Authority, North Carolina, Airport
 Revenue Bonds, Series 2001A:
 1,780 5.250%, 11/01/15 - FGIC Insured 5/11 at 101.00 Aa3 1,843,599
 3,100 5.000%, 11/01/20 - FGIC Insured 5/11 at 101.00 Aa3 3,167,549
------------------------------------------------------------------------------------------------------------------------------------
 9,085 Total Transportation 7,313,768
------------------------------------------------------------------------------------------------------------------------------------
 U.S. GUARANTEED - 17.2% (10.8% OF TOTAL INVESTMENTS) (4)
 170 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 Aa3 (4) 176,710
 Healthcare System Revenue Bonds, Carolinas Healthcare
 System, Series 2001A, 5.000%, 1/15/31 (Pre-refunded
 1/15/11)
 200 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AAA 230,548
 Healthcare System Revenue Bonds, DBA Carolinas Healthcare
 System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded
 1/15/15)
 Forsyth County, North Carolina, Certificates of
 Participation, Public Facilities and Equipment Project,
 Series 2002:
 1,325 5.125%, 1/01/16 (Pre-refunded 1/01/13) 1/13 at 101.00 AA+ (4) 1,473,215
 770 5.250%, 1/01/19 (Pre-refunded 1/01/13) 1/13 at 101.00 AA+ (4) 858,589
 North Carolina Capital Facilities Financing Agency, Revenue
 Bonds, Duke University, Series 2001A:
 920 5.125%, 10/01/26 (Pre-refunded 10/01/11) 10/11 at 100.00 AAA 977,141
 405 5.125%, 10/01/41 (Pre-refunded 10/01/11) 10/11 at 100.00 AAA 430,155
 1,600 North Carolina Capital Facilities Financing Agency, Revenue 10/12 at 100.00 AAA 1,762,368
 Bonds, Duke University, Series 2002A, 5.125%, 7/01/42
 (Pre-refunded 10/01/12)
 500 North Carolina Medical Care Commission, Health System Revenue 10/11 at 101.00 AA (4) 536,645
 Bonds, Mission St. Joseph's Health System, Series 2001,
 5.250%, 10/01/31 (Pre-refunded 10/01/11)
 500 North Carolina Medical Care Commission, Revenue Bonds, 11/14 at 100.00 Aa3 (4) 578,015
 Northeast Medical Center, Series 2004, 5.000%, 11/01/24
 (Pre-refunded 11/01/14)
 University of North Carolina System, Pooled Revenue Refunding
 Bonds, Series 2002A:
 610 5.000%, 4/01/27 (Pre-refunded 10/01/12) - AMBAC Insured 10/12 at 100.00 N/R (4) 670,134
 585 5.000%, 4/01/27 (Pre-refunded 10/01/12) - AMBAC Insured 10/12 at 100.00 N/R (4) 641,663
 1,500 Winston-Salem, North Carolina, Water and Sewerage System 6/12 at 100.00 AAA 1,628,655
 Revenue Bonds, Series 2002A, 5.000%, 6/01/19 (Pre-refunded
 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
 9,085 Total U.S. Guaranteed 9,963,838
------------------------------------------------------------------------------------------------------------------------------------
 UTILITIES - 19.3% (12.1% OF TOTAL INVESTMENTS)
 150 North Carolina Eastern Municipal Power Agency, Power System 1/13 at 100.00 A- 161,025
 Revenue Bonds, Series 2003F, 5.500%, 1/01/16
 500 North Carolina Eastern Municipal Power Agency, Power System 1/16 at 100.00 AA 534,895
 Revenue Bonds, Series 2005, 5.250%, 1/01/20 - AMBAC
 Insured
 1,400 North Carolina Eastern Municipal Power Agency, Power System 1/19 at 100.00 A- 1,471,778
 Revenue Bonds, Series 2009B, 5.000%, 1/01/26
 4,060 North Carolina Eastern Municipal Power Agency, Power System 7/10 at 100.00 Baa1 4,067,064
 Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/17 -
 FGIC Insured

Nuveen Investments 53

NII | Nuveen North Carolina Dividend Advantage Municipal Fund 3 (continued) | Portfolio of Investments May 31, 2010

 PRINCIPAL OPTIONAL CALL
 AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
 UTILITIES (continued)
$ 275 North Carolina Municipal Power Agency 1, Catawba Electric 1/19 at 100.00 A $ 284,895
 Revenue Bonds, Refunding Series 2009A, 5.000%, 1/01/30
 2,665 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 A 2,916,629
 Revenue Bonds, Series 2003A, 5.250%, 1/01/15 - AMBAC
 Insured
 250 North Carolina Municipal Power Agency 1, Catawba Electric 1/18 at 100.00 A 279,293
 Revenue Bonds, Series 2008A, 5.250%, 1/01/20
 1,400 Wake County Industrial Facilities and Pollution Control 2/12 at 101.00 A1 1,484,742
 Financing Authority, North Carolina, Revenue Refunding
 Bonds, Carolina Power and Light Company, Series 2002,
 5.375%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
 10,700 Total Utilities 11,200,321
------------------------------------------------------------------------------------------------------------------------------------
 WATER AND SEWER - 35.4% (22.3% OF TOTAL INVESTMENTS)
 2,000 Brunswick County, North Carolina, Enterprise System Revenue 4/18 at 100.00 AAA 2,099,040
 Bonds, Series 2008A, 5.000%, 4/01/31 - AGM Insured
 425 Cape Fear Public Utility Authority, North Carolina, Water & 8/18 at 100.00 AA 460,063
 Sewer System Revenue Bonds, Series 2008, 5.000%, 8/01/28
 Charlotte, North Carolina, Water and Sewerage System Revenue
 Bonds, Series 2001:
 750 5.125%, 6/01/26 6/11 at 101.00 AAA 779,625
 1,780 5.125%, 6/01/26 - FGIC Insured 6/11 at 101.00 Aaa 1,838,153
 300 Durham County, North Carolina, Enterprise System Revenue 6/13 at 100.00 AA 325,272
 Bonds, Series 2002, 5.000%, 6/01/18 - NPFG Insured
 2,500 Kannapolis, North Carolina, Water and Sewerage System Revenue 2/12 at 101.00 AAA 2,516,525
 Bonds, Series 2001B, 5.250%, 2/01/26 - AGM Insured
 (Alternative Minimum Tax)
 50 Oak Island, North Carolina, Enterprise System Revenue Bonds, 6/19 at 100.00 AAA 54,844
 Series 2009A, 6.000%, 6/01/34 - AGC Insured
 500 Onslow County, North Carolina, Combined Enterprise System 6/14 at 100.00 A 525,489
 Revenue Bonds, Series 2004B, 5.000%, 6/01/23 - SYNCORA GTY
 Insured
 1,000 Orange Water and Sewerage Authority, North Carolina, Water 7/11 at 101.00 AA+ 1,024,599
 and Sewerage System Revenue Bonds, Series 2001, 5.000%,
 7/01/26
 Raleigh, North Carolina, Combined Enterprise System Revenue
 Bonds, Series 2006A:
 4,950 5.000%, 3/01/31 (UB) 3/16 at 100.00 AAA 5,258,286
 3,000 5.000%, 3/01/36 (UB) 3/16 at 100.00 AAA 3,150,390
 5 Raleigh, North Carolina, Combined Enterprise System Revenue 3/16 at 100.00 AAA 5,752
 Bonds, Series 2006A, Residuals Series II-R-645-2, 13.564%,
 3/01/36 (IF)
 2,375 Winston-Salem, North Carolina, Water and Sewer System Revenue 6/17 at 100.00 AAA 2,500,353
 Bonds, Series 2007A, 5.000%, 6/01/37 (UB)
------------------------------------------------------------------------------------------------------------------------------------
 19,635 Total Water and Sewer 20,538,391
------------------------------------------------------------------------------------------------------------------------------------
$ 92,570 Total Investments (cost $89,373,923) - 158.9% 92,259,761
===============---------------------------------------------------------------------------------------------------------------------
 Floating Rate Obligations - (12.9)% (7,480,000)
 ------------------------------------------------------------------------------------------------------------------
 MuniFund Term Preferred Shares, at Liquidation Value - (49.5)% (5) (28,725,000)
 ------------------------------------------------------------------------------------------------------------------
 Other Assets Less Liabilities - 3.5% 1,999,676
 ------------------------------------------------------------------------------------------------------------------
 Net Assets Applicable to Common Shares - 100% $ 58,054,437
 ==================================================================================================================

(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 (not covered by the report of independent
 registered public accounting firm): 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 (not covered by the report of independent registered public
 accounting firm): 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.

(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 31.1%.

N/R Not rated.

(IF) Inverse floating rate investment.

(UB) Underlying bond of an inverse floating rate trust reflected as a financing
 transaction. See Notes to Financial Statements, Footnote 1 - Inverse
 Floating Rate Securities for more information.

See accompanying notes to financial statements.

54 Nuveen Investments

| Statement of
| Assets & Liabilities May 31, 2010

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
 (NPG) (NZX) (NKG)
------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $79,615,332, $42,041,084 and
 $93,933,803, respectively) $ 83,035,864 $ 43,465,504 $ 96,755,675
Cash 4,399 -- --
Receivables:
 Interest 1,434,692 734,727 1,589,820
 Investments sold -- -- --
Deferred offering costs 619,737 397,423 689,306
Other assets 9,238 5,006 10,902
------------------------------------------------------------------------------------------------------------
 Total assets 85,103,930 44,602,660 99,045,703
------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 50,277 2,223
Floating rate obligations 1,190,000 660,000 1,395,000
Payables:
 Investments purchased -- -- --
 Common share dividends 207,189 119,887 264,347
 Interest 62,584 31,667 71,252
 Offering costs 201,653 176,739 239,775
MuniFund Term Preferred shares, at liquidation value 28,340,000 14,340,000 32,265,000
Accrued expenses:
 Management fees 46,059 20,259 46,816
 Other 38,491 24,647 40,382
------------------------------------------------------------------------------------------------------------
 Total liabilities 30,085,976 15,423,476 34,324,795
------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares, at liquidation value -- -- --
------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 55,017,954 $ 29,179,184 $ 64,720,908
============================================================================================================
Common shares outstanding 3,805,652 1,970,036 4,554,986
============================================================================================================
Net asset value per Common share outstanding (net assets
 applicable to Common shares, divided by Common shares
 outstanding) $ 14.46 $ 14.81 $ 14.21
============================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 38,057 $ 19,700 $ 45,550
Paid-in surplus 52,342,836 27,889,665 64,225,987
Undistributed (Over-distribution of) net investment
 income 536,108 267,475 484,394
Accumulated net realized gain (loss) (1,319,579) (422,076) (2,856,895)
Net unrealized appreciation (depreciation) 3,420,532 1,424,420 2,821,872
------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 55,017,954 $ 29,179,184 $ 64,720,908
============================================================================================================
Authorized shares:
 Common Unlimited Unlimited Unlimited
 Auction Rate Preferred Unlimited Unlimited Unlimited
 MuniFund Term Preferred Unlimited Unlimited Unlimited
============================================================================================================

See accompanying notes to financial statements.

Nuveen Investments 55

| Statement of
| Assets & Liabilities (continued) May 31, 2010

 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NNC) (NRB) (NNO) (NII)
-----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $136,722,688, $54,044,704,
 $85,399,890 and $89,373,923, respectively) $ 142,179,077 $ 56,281,380 $ 88,737,834 $ 92,259,761
Cash -- 71,956 676,410 --
Receivables:
 Interest 2,448,372 957,956 1,455,276 1,476,786
 Investments sold 179,185 1,045,811 209,092 530,586
Deferred offering costs 621,783 486,640 686,027 658,374
Other assets 23,375 5,672 9,333 9,336
-----------------------------------------------------------------------------------------------------------------------------
 Total assets 145,451,792 58,849,415 91,773,972 94,934,843
-----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 1,525 -- -- 22,631
Floating rate obligations 5,195,000 7,160,000 4,805,000 7,480,000
Payables:
 Investments purchased -- -- 48,363 --
 Common share dividends 363,266 153,272 249,853 255,056
 Interest 53,663 35,967 64,350 63,434
 Offering costs 289,272 229,400 239,400 254,768
MuniFund Term Preferred shares, at liquidation value 24,300,000 16,600,000 29,700,000 28,725,000
Accrued expenses:
 Management fees 75,815 25,901 39,199 40,887
 Other 53,366 27,918 38,144 38,630
-----------------------------------------------------------------------------------------------------------------------------
 Total liabilities 30,331,907 24,232,458 35,184,309 36,880,406
-----------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares, at liquidation value 21,550,000 -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 93,569,885 $ 34,616,957 $ 56,589,663 $ 58,054,437
=============================================================================================================================
Common shares outstanding 6,357,623 2,269,054 3,751,262 3,935,530
=============================================================================================================================
Net asset value per Common share outstanding (net assets
 applicable to Common shares, divided by Common shares
 outstanding) $ 14.72 $ 15.26 $ 15.09 $ 14.75
=============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
-----------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 63,576 $ 22,691 $ 37,513 $ 39,355
Paid-in surplus 87,865,715 32,163,559 53,194,372 55,491,657
Undistributed (Over-distribution of) net investment
 income 910,543 398,182 607,929 481,174
Accumulated net realized gain (loss) (726,338) (204,151) (588,095) (843,587)
Net unrealized appreciation (depreciation) 5,456,389 2,236,676 3,337,944 2,885,838
-----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 93,569,885 $ 34,616,957 $ 56,589,663 $ 58,054,437
=============================================================================================================================
Authorized shares:
 Common Unlimited Unlimited Unlimited Unlimited
 Auction Rate Preferred Unlimited Unlimited Unlimited Unlimited
 MuniFund Term Preferred Unlimited Unlimited Unlimited Unlimited
=============================================================================================================================

See accompanying notes to financial statements.

56 Nuveen Investments

| Statement of
| Operations Year Ended May 31, 2010

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
 (NPG) (NZX) (NKG)
------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 3,883,725 $ 2,107,084 $ 4,531,520
------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 535,997 284,385 614,785
Auction fees 29,477 13,573 29,093
Dividend disbursing agent fees 12,521 14,192 14,192
Shareholders' servicing agent fees and expenses 3,999 571 616
Interest expense and amortization of offering costs 247,563 131,469 346,671
Custodian's fees and expenses 20,360 14,389 23,583
Trustees' fees and expenses 2,345 1,291 2,641
Professional fees 13,204 10,106 13,862
Shareholders' reports - printing and mailing expenses 24,454 13,630 25,909
Stock exchange listing fees 537 278 643
Investor relations expense 6,661 3,489 6,928
Other expenses 15,301 13,902 23,998
------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 912,419 501,275 1,102,921
 Custodian fee credit (565) (220) (635)
 Expense reimbursement -- (51,568) (101,618)
------------------------------------------------------------------------------------------------------------------------------
Net expenses 911,854 449,487 1,000,668
------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,971,871 1,657,597 3,530,852
------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (80,448) (247,298) (701,883)
Change in net unrealized appreciation (depreciation) of investments 2,560,292 1,731,310 4,718,199
------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 2,479,844 1,484,012 4,016,316
------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS
From net investment income (86,098) (47,292) (93,719)
From accumulated net realized gains -- -- --
------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from distributions to
 Auction Rate Preferred shareholders (86,098) (47,292) (93,719)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares from
 operations $ 5,365,617 $ 3,094,317 $ 7,453,449
==============================================================================================================================

See accompanying notes to financial statements.

Nuveen Investments 57

| Statement of
| Operations (continued) Year Ended May 31, 2010

 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,574,075 $ 2,635,650 $ 4,079,627 $ 4,246,613
----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 882,393 326,709 536,001 549,099
Auction fees 58,342 20,274 34,067 28,801
Dividend disbursing agent fees 10,000 7,479 15,863 14,192
Shareholders' servicing agent fees and expenses 7,078 431 680 739
Interest expense and amortization of offering costs 313,964 127,070 177,404 315,671
Custodian's fees and expenses 31,471 15,919 22,310 22,544
Trustees' fees and expenses 3,882 1,396 2,334 2,470
Professional fees 18,025 10,642 13,103 13,206
Shareholders' reports - printing and mailing expenses 32,442 18,049 25,385 22,329
Stock exchange listing fees 9,168 320 529 555
Investor relations expense 11,622 4,267 6,734 7,187
Other expenses 22,791 22,330 25,334 23,834
----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
 reimbursement 1,401,178 554,886 859,744 1,000,627
 Custodian fee credit (700) (275) (380) (229)
 Expense reimbursement -- (42,519) (104,438) (90,913)
----------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,400,478 512,092 754,926 909,485
----------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,173,597 2,123,558 3,324,701 3,337,128
----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 423,483 28,829 59,796 112,606
Change in net unrealized appreciation (depreciation) of
 investments 5,030,176 1,416,200 2,550,370 2,553,468
----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 5,453,659 1,445,029 2,610,166 2,666,074
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS
From net investment income (162,889) (62,338) (104,048) (91,210)
From accumulated net realized gains -- -- (2,285) --
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
 distributions to Auction Rate Preferred shareholders (162,889) (62,338) (106,333) (91,210)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
 from operations $ 10,464,367 $ 3,506,249 $ 5,828,534 $ 5,911,992
==================================================================================================================================

See accompanying notes to financial statements.

58 Nuveen Investments

| Statement of
| Changes in Net Assets

 GEORGIA GEORGIA GEORGIA
 PREMIUM INCOME (NPG) DIVIDEND ADVANTAGE (NZX) DIVIDEND ADVANTAGE 2 (NKG)
 ---------------------------- ---------------------------- -----------------------------
 YEAR YEAR YEAR YEAR YEAR YEAR
 ENDED ENDED ENDED ENDED ENDED ENDED
 5/31/10 5/31/09 5/31/10 5/31/09 5/31/10 5/31/09
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,971,871 $ 3,224,577 $ 1,657,597 $ 1,792,334 $ 3,530,852 $ 3,958,372
Net realized gain (loss) from:
 Investments (80,448) (1,167,344) (247,298) (336,360) (701,883) (1,562,683)
 Forward swaps -- -- -- 153,554 -- --
 Futures -- -- -- 53,752 -- --
Change in net unrealized appreciation
 (depreciation) of:
 Investments 2,560,292 (875,690) 1,731,310 (865,813) 4,718,199 (1,763,298)
 Forward swaps -- -- -- (139,708) -- --
 Futures -- -- -- -- -- --
Distributions to Auction Rate
 Preferred Shareholders:
 From net investment income (86,098) (626,715) (47,292) (337,625) (93,719) (741,862)
 From accumulated net realized gains -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
 applicable to Common shares from
 operations 5,365,617 554,828 3,094,317 320,134 7,453,449 (109,471)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,574,524) (2,338,573) (1,447,538) (1,295,832) (3,156,398) (2,876,178)
From accumulated net realized gains -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
 Common shares from distributions to
 Common shareholders (2,574,524) (2,338,573) (1,447,538) (1,295,832) (3,156,398) (2,876,178)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued
 to shareholders due to reinvestment
 of distributions -- -- 10,096 -- 4,625 3,290
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
 applicable to Common shares from
 capital share transactions -- -- 10,096 -- 4,625 3,290
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
 applicable to Common shares 2,791,093 (1,783,745) 1,656,875 (975,698) 4,301,676 (2,982,359)
Net assets applicable to Common shares
 at the beginning of year 52,226,861 54,010,606 27,522,309 28,498,007 60,419,232 63,401,591
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares
 at the end of year $ 55,017,954 $ 52,226,861 $ 29,179,184 $ 27,522,309 $ 64,720,908 $ 60,419,232
====================================================================================================================================
Undistributed (Over-distribution of) net
 investment income at the end of year $ 536,108 $ 189,537 $ 267,475 $ 82,047 $ 484,394 $ 154,013
====================================================================================================================================

See accompanying notes to financial statements.

Nuveen Investments 59

| Statement of
| Changes in Net Assets (continued)

 NORTH CAROLINA NORTH CAROLINA
 PREMIUM INCOME (NNC) DIVIDEND ADVANTAGE (NRB)
 ------------------------------- -------------------------------
 YEAR YEAR YEAR YEAR
 ENDED ENDED ENDED ENDED
 5/31/10 5/31/09 5/31/10 5/31/09
---------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,173,597 $ 5,380,918 $ 2,123,558 $ 2,154,026
Net realized gain (loss) from:
 Investments 423,483 (897,516) 28,829 (137,599)
 Forward swaps -- -- -- --
 Futures -- 115,239 -- --
Change in net unrealized appreciation
 (depreciation) of:
 Investments 5,030,176 (968,029) 1,416,200 (57,913)
 Forward swaps -- -- -- --
 Futures -- 5,056 -- --
Distributions to Auction Rate
 Preferred Shareholders:
 From net investment income (162,889) (1,055,046) (62,338) (381,027)
 From accumulated net realized gains -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
 Common shares from operations 10,464,367 2,580,622 3,506,249 1,577,487
---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,536,632) (3,849,214) (1,829,817) (1,587,813)
From accumulated net realized gains -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
 from distributions to Common shareholders (4,536,632) (3,849,214) (1,829,817) (1,587,813)
---------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
 due to reinvestment of distributions 84,012 -- 47,006 36,304
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
 Common shares from capital share transactions 84,012 -- 47,006 36,304
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
 Common shares 6,011,747 (1,268,592) 1,723,438 25,978
Net assets applicable to Common shares at the
 beginning of year 87,558,138 88,826,730 32,893,519 32,867,541
---------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of
 year $ 93,569,885 $ 87,558,138 $ 34,616,957 $ 32,893,519
===========================================================================================================================
Undistributed (Over-distribution of) net investment
 income at the end of year $ 910,543 $ 388,750 $ 398,182 $ 149,419
===========================================================================================================================

See accompanying notes to financial statements.

60 Nuveen Investments

 NORTH CAROLINA NORTH CAROLINA
 DIVIDEND ADVANTAGE 2 (NNO) DIVIDEND ADVANTAGE 3 (NII)
 ------------------------------- -------------------------------
 YEAR YEAR YEAR YEAR
 ENDED ENDED ENDED ENDED
 5/31/10 5/31/09 5/31/10 5/31/09
-----------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,324,701 $ 3,430,965 $ 3,337,128 $ 3,522,734
Net realized gain (loss) from:
 Investments 59,796 (604,487) 112,606 (59,376)
 Forward swaps -- -- -- --
 Futures -- 117,502 -- --
Change in net unrealized appreciation
 (depreciation) of:
 Investments 2,550,370 (466,301) 2,553,468 (718,134)
 Forward swaps -- -- -- --
 Futures -- 5,332 -- --
Distributions to Auction Rate
 Preferred Shareholders:
 From net investment income (104,048) (632,076) (91,210) (635,213)
 From accumulated net realized gains (2,285) -- -- --
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
 to Common shares from operations 5,828,534 1,850,935 5,911,992 2,110,011
-----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,908,243) (2,437,267) (2,956,668) (2,611,502)
From accumulated net realized gains (8,625) -- -- --
-----------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
 from distributions to Common shareholders (2,916,868) (2,437,267) (2,956,668) (2,611,502)
-----------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to
 shareholders due to reinvestment of
 distributions 24,591 -- 34,165 11,874
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
 to Common shares from capital share
 transactions 24,591 -- 34,165 11,874
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
 to Common shares 2,936,257 (586,332) 2,989,489 (489,617)
Net assets applicable to Common shares at the
 beginning of year 53,653,406 54,239,738 55,064,948 55,554,565
-----------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end
 of year $ 56,589,663 $ 53,653,406 $ 58,054,437 $ 55,064,948
=======================================================================================================================
Undistributed (Over-distribution of) net
 investment income at the end of year $ 607,929 $ 271,032 $ 481,174 $ 149,423
=======================================================================================================================

See accompanying notes to financial statements.

Nuveen Investments 61

| Statement of
| Cash Flows Year Ended May 31, 2010

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
 (NPG) (NZX) (NKG)
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON
SHARES FROM OPERATIONS $ 5,365,617 $ 3,094,317 $ 7,453,449
Adjustments to reconcile the net increase (decrease) in net assets applicable to
 Common shares from operations to net cash provided by (used in) operating
 activities:
 Purchases of investments (4,664,465) (2,182,634) (6,206,103)
 Proceeds from sales and maturities of investments 1,758,497 1,702,038 3,138,515
 Amortization (Accretion) of premiums and discounts, net 186,442 92,402 300,706
 (Increase) Decrease in receivable for interest (82,636) (20,394) (106,190)
 (Increase) Decrease in receivable for investments sold -- -- --
 (Increase) Decrease in other assets 994 3,361 2,429
 Increase (Decrease) in payable for Auction Rate Preferred share dividends (1,182) (1,430) (3,018)
 Increase (Decrease) in payable for investments purchased -- (190,778) (333,861)
 Increase (Decrease) in payable for interest 62,584 31,667 71,252
 Increase (Decrease) in accrued management fees 1,964 2,298 8,678
 Increase (Decrease) in accrued other liabilities 9,454 6,815 8,238
 Net realized (gain) loss from investments 80,448 247,298 701,883
 Change in net unrealized (appreciation) depreciation of investments (2,560,292) (1,731,310) (4,718,199)
 Taxes paid on undistributed capital gains (25) (11) (3)
------------------------------------------------------------------------------------------------------------------------------------
 Net cash provided by (used in) operating activities 157,400 1,053,639 317,776
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in cash overdraft balance -- 50,277 2,223
Cash distributions paid to Common shareholders (2,552,794) (1,422,234) (3,122,073)
Increase (Decrease) in Auction Rate Preferred shares noticed for redemption,at
 liquidation value -- -- --
(Increase) Decrease in deferred offering costs (619,737) (397,423) (689,306)
Increase (Decrease) in payable for offering costs 201,653 176,739 239,775
Increase (Decrease) in Auction Rate Preferred shares, at liquidation value (27,800,000) (15,000,000) (31,700,000)
Increase (Decrease) in MuniFund Term Preferred shares, at liquidation value 28,340,000 14,340,000 32,265,000
------------------------------------------------------------------------------------------------------------------------------------
 Net cash provided by (used in) financing activities (2,430,878) (2,252,641) (3,004,381)
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (2,273,478) (1,199,002) (2,686,605)
Cash at the beginning of year 2,277,877 1,199,002 2,686,605
------------------------------------------------------------------------------------------------------------------------------------
CASH AT THE END OF YEAR $ 4,399 $ -- $ --
====================================================================================================================================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Non-cash financing activities not included herein consist of reinvestments of Common share distributions as follows:

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
 (NPG) (NZX) (NKG)
------------------------------------------------------------------------------------------------------------------------------------
 $ -- $ 10,096 $ 4,625
====================================================================================================================================

Cash paid for interest (excluding amortization of offering costs, was as follows:

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
 (NPG) (NZX) (NKG)
------------------------------------------------------------------------------------------------------------------------------------
 $ 149,616 $ 77,125 $ 225,750
====================================================================================================================================

See accompanying notes to financial statements.

62 Nuveen Investments

 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON
SHARES FROM OPERATIONS $ 10,464,367 $ 3,506,249 $ 5,828,534 $ 5,911,992
Adjustments to reconcile the net increase (decrease) in net
 assets applicable to Common shares from operations to net
 cash provided by (used in) operating activities:
 Purchases of investments (9,879,787) (3,186,401) (8,727,576) (5,986,415)
 Proceeds from sales and maturities of investments 8,768,489 3,670,646 7,785,058 5,484,524
 Amortization (Accretion) of premiums and discounts, net 369,413 127,107 193,110 208,740
 (Increase) Decrease in receivable for interest (5,470) (22,227) (18,288) (53,206)
 (Increase) Decrease in receivable for investments sold (179,185) (1,045,811) (209,092) (530,586)
 (Increase) Decrease in other assets (3,045) 6,543 4,289 2,630
 Increase (Decrease) in payable for Auction Rate Preferred
 share dividends (1,989) (1,349) (2,666) (1,728)
 Increase (Decrease) in payable for investments purchased (223,875) (29,850) (71,037) (179,100)
 Increase (Decrease) in payable for interest 53,663 35,967 64,350 63,434
 Increase (Decrease) in accrued management fees 2,009 2,625 4,603 6,399
 Increase (Decrease) in accrued other liabilities 7,421 7,367 7,732 8,328
 Net realized (gain) loss from investments (423,483) (28,829) (59,796) (112,606)
 Change in net unrealized (appreciation) depreciation of
 investments (5,030,176) (1,416,200) (2,550,370) (2,553,468)
 Taxes paid on undistributed capital gains (170) -- (6) --
----------------------------------------------------------------------------------------------------------------------------------
 Net cash provided by (used in) operating activities 3,918,182 1,625,837 2,248,845 2,268,938
----------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in cash overdraft balance 1,525 -- -- 22,631
Cash distributions paid to Common shareholders (4,409,438) (1,764,882) (2,856,155) (2,884,781)
Increase (Decrease) in Auction Rate Preferred shares noticed
 for redemption, at liquidation value (1,650,000) -- -- --
(Increase) Decrease in deferred offering costs (621,783) (486,640) (686,027) (658,374)
Increase (Decrease) in payable for offering costs 289,272 229,400 239,400 254,768
Increase (Decrease) in Auction Rate Preferred shares, at
 liquidation value (23,600,000) (17,000,000) (28,000,000) (28,000,000)
Increase (Decrease) in MuniFund Term Preferred shares, at
 liquidation value 24,300,000 16,600,000 29,700,000 28,725,000
----------------------------------------------------------------------------------------------------------------------------------
 Net cash provided by (used in) financing activities (5,690,424) (2,422,122) (1,602,782) (2,540,756)
----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (1,772,242) (796,285) 646,063 (271,818)
Cash at the beginning of year 1,772,242 868,241 30,347 271,818
----------------------------------------------------------------------------------------------------------------------------------
CASH AT THE END OF YEAR $ -- $ 71,956 $ 676,410 $ --
==================================================================================================================================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Non-cash financing activities not included herein consist of reinvestments of Common share distributions as follows:

 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------------------------------
 $ 84,012 $ 47,006 $ 24,591 $ 34,165
==================================================================================================================================

Cash paid for interest (excluding amortization of offering costs, was as follows:

 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------------------------------
 $ 212,584 $ 73,742 $ 85,581 $ 209,736
==================================================================================================================================

See accompanying notes to financial statements.

Nuveen Investments 63

| Notes to
| Financial Statements

1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The state funds covered in this report and their corresponding Common share stock exchange symbols are Nuveen Georgia Premium Income Municipal Fund (NPG), Nuveen Georgia Dividend Advantage Municipal Fund (NZX), Nuveen Georgia Dividend Advantage Municipal Fund 2 (NKG), Nuveen North Carolina Premium Income Municipal Fund (NNC), Nuveen North Carolina Dividend Advantage Municipal Fund (NRB), Nuveen North Carolina Dividend Advantage Municipal Fund 2 (NNO) and Nuveen North Carolina Dividend Advantage Municipal Fund 3 (NII) (collectively, the "Funds"). Common shares of Georgia Premium Income (NPG), Georgia Dividend Advantage (NZX), Georgia Dividend Advantage 2 (NKG), North Carolina Dividend Advantage (NRB), North Carolina Dividend Advantage 2 (NNO) and North Carolina Dividend Advantage
3 (NII) are traded on the New York Stock Exchange ("NYSE") while Common shares of North Carolina Premium Income (NNC) are traded on the NYSE Amex. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end, management investment companies.

Each Fund seeks to provide current income exempt from both regular federal and designated state income taxes by investing primarily in a portfolio of municipal obligations issued by state and local government authorities within a single state or certain U.S. territories.

In June 2009, the Financial Accounting Standards Board ("FASB") established the FASB Accounting Standards Codification(TM) (the "Codification") as the single source of authoritative accounting principles recognized by the FASB in the preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"). The Codification supersedes existing non-grandfathered, non-SEC accounting and reporting standards. The Codification did not change GAAP but rather organized it into a hierarchy where all guidance within the Codification carries an equal level of authority. The Codification became effective for financial statements issued for interim and annual periods ending after September 15, 2009. The Codification did not have a material effect on the Funds' financial statements.

The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP").

Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Trustees. Prices of forward swap contracts are also provided by an independent pricing service approved by each Fund's Board of Trustees. Futures contracts are valued using the closing settlement price or, in the absence of such a price, at the mean of the bid and asked prices. When market price quotes are not readily available (which is usually the case for municipal securities), the pricing service or, in the absence of a pricing service for a particular investment or derivative instrument, the Board of Trustees of the Fund, or its designee, may establish fair value using a wide variety of market data including yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates value.

Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At May 31, 2010, there were no such outstanding purchase commitments in any of the Funds.

Investment Income
Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any.

64 Nuveen Investments

Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions that will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation.

For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.

Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

Auction Rate Preferred Shares
The following Fund has issued and outstanding Auction Rate Preferred Shares ("ARPS"), $25,000 stated value per share, which approximates market value, as a means of effecting financial leverage. The Fund's ARPS are issued in one Series. The dividend rate paid by the Fund on the Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period. As of May 31, 2010, the number of ARPS outstanding for the Fund is as follows:

NORTH
CAROLINA
PREMIUM
INCOME
(NNC)

Number of shares:
Series TH 862

Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the ARPS issued by the Funds than there were offers to buy. This meant that these auctions "failed to clear," and that many ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. ARPS shareholders unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions as calculated in accordance with the pre-established terms of the ARPS. As of May 31, 2010, the aggregate amount of outstanding ARPS redeemed by each Fund is as follows:

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
 (NPG) (NZX) (NKG)
-------------------------------------------------------------------------------
ARPS redeemed, at liquidation value $27,800,000 $15,000,000 $33,000,000
===============================================================================
 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NNC) (NRB) (NNO) (NII)
-------------------------------------------------------------------------------
ARPS redeemed, at

liquidation value $25,250,000 $17,000,000 $28,000,000 $28,000,000

Nuveen Investments 65

| Notes to
| Financial Statements (continued)

MuniFund Term Preferred Shares
Each Fund has issued and outstanding MuniFund Term Preferred ("MTP") Shares, with a $10 stated value per share. Proceeds from the issuance of MTP Shares, net of offering expenses, were used to redeem all, or a portion of, each Fund's outstanding ARPS. Each Fund's MTP Shares are issued in one Series. Dividends, which are recognized as interest expense for financial reporting purposes, are paid monthly at a fixed annual rate, subject to adjustments in certain circumstances. The MTP Shares trade on the NYSE. As of May 31, 2010, the number of MTP Shares outstanding, annual interest rate and the NYSE "ticker" symbol for each Fund are as follows:

 GEORGIA PREMIUM INCOME (NPG) GEORGIA DIVIDEND ADVANTAGE (NZX)
 --------------------------------------- -------------------------------------
 ANNUAL ANNUAL
 SHARES INTEREST NYSE SHARES INTEREST NYSE
 OUTSTANDING RATE TICKER OUTSTANDING RATE TICKER
---------------------------------------------------------------------------------------------------
Series 2015 2,834,000 2.65% NPG Pr C 1,434,000 2.65% NZX Pr C
===================================================================================================

 GEORGIA DIVIDEND ADVANTAGE 2 (NKG) NORTH CAROLINA PREMIUM INCOME (NNC)
 ------------------------------------- ----------------------------------------
 ANNUAL ANNUAL
 SHARES INTEREST NYSE SHARES INTEREST NYSE
 OUTSTANDING RATE TICKER OUTSTANDING RATE TICKER
---------------------------------------------------------------------------------------------------
Series 2015 3,226,500 2.65% NKG Pr C 2,430,000 2.65% NNC Pr C
===================================================================================================

 NORTH CAROLINA DIVIDEND ADVANTAGE (NRB) NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
 ---------------------------------------- --------------------------------------------
 ANNUAL ANNUAL
 SHARES INTEREST NYSE SHARES INTEREST NYSE
 OUTSTANDING RATE TICKER OUTSTANDING RATE TICKER
---------------------------------------------------------------------------------------------------
Series 2015 1,660,000 2.60% NRB Pr C 2,970,000 2.60% NNO Pr C
===================================================================================================

 NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
 ---------------------------------------------------
 ANNUAL
 SHARES INTEREST NYSE
 OUTSTANDING RATE TICKER
---------------------------------------------------------------------------------------------------
Series 2015 2,872,500 2.65% NII Pr C
===================================================================================================

Each Fund is obligated to redeem its MTP Shares by the date as specified in its offering document ("Term Redemption Date"), unless earlier redeemed or repurchased by the Fund. MTP Shares are subject to optional and mandatory redemption in certain circumstances. MTP Shares will be subject to redemption at the option of each Fund ("Optional Redemption Date"), subject to a payment of premium for one year following the Optional Redemption Date ("Premium Expiration Date"), and at par thereafter. MTP Shares also will be subject to redemption, at the option of each Fund, at par in the event of certain changes in the credit rating of the MTP Shares. Each Fund may be obligated to redeem certain of the MTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. The Term Redemption Date, Optional Redemption Date and Premium Expiration Date for each Fund's MTP Shares are as follows:

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
 (NPG) (NZX) (NKG)
 SERIES 2015 SERIES 2015 SERIES 2015
-------------------------------------------------------------------------------------------------
Term Redemption Date March 1, 2015 March 1, 2015 February 1, 2015
Optional Redemption Date March 1, 2011 March 1, 2011 February 1, 2011
Premium Expiration Date February 29, 2012 February 29, 2012 January 31, 2012
=================================================================================================

 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NNC) (NRB) (NNO) (NII)
 SERIES 2015 SERIES 2015 SERIES 2015 SERIES 2015
-------------------------------------------------------------------------------------------------
Term Redemption Date February 1, 2015 April 1, 2015 April 1, 2015 March 1, 2015
Optional Redemption Date February 1, 2011 April 1, 2011 April 1, 2011 March 1, 2011
Premium Expiration Date January 31, 2012 March 31, 2012 March 31, 2012 February 29, 2012
=================================================================================================

66 Nuveen Investments

The average liquidation value of MTP Shares outstanding for each Fund during the fiscal year ended May 31, 2010, was as follows:

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
 (NPG)* (NZX)* (NKG)**
--------------------------------------------------------------------------------
Average liquidation value of
 MTP Shares outstanding $28,057,172 $14,340,000 $32,063,780
================================================================================

 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NNC)*** (NRB)**** (NNO)**** (NII)*****
----------------------------------------------------------------------------------------------------------------------------
Average liquidation value of MTP Shares outstanding $24,238,931 $16,600,000 $29,493,651 $28,725,000
============================================================================================================================

* For the period February 22, 2010 (first issuance date of shares) through May 31, 2010.

** For the period January 29, 2010 (first issuance date of shares) through May 31, 2010.

*** For the period January 21, 2010 (first issuance date of shares) through May 31, 2010.

**** For the period March 30, 2010 (first issuance date of shares) through May 31, 2010.

***** For the period February 9, 2010 (first issuance date of shares) through May 31, 2010.

For financial reporting purposes only, the liquidation value of MTP Shares is recorded as a liability on the Statement of Assets and Liabilities. Unpaid dividends on MTP Shares are recognized as "Interest payable" on the Statement of Assets and Liabilities. Dividends paid on MTP Shares are recognized as a component of "Interest expense and amortization of offering costs" on the Statement of Operations.

Net amounts earned by Nuveen Investments, Inc. ("Nuveen") as underwriter of each Fund's MTP Share offering were recorded as reductions of offering costs recognized by the Funds. For the fiscal year ended May 31, 2010, the net amounts earned by Nuveen were as follows:

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
 (NPG) (NZX) (NKG)
--------------------------------------------------------------------------------
Net amounts earned by Nuveen $1,320 $500 $1,742
================================================================================

 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NNC) (NRB) (NNO) (NII)
--------------------------------------------------------------------------------
Net amounts earned by Nuveen $1,302 $-- $-- $1,760
================================================================================

Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond's par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an "inverse floater") that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond's downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond's value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond.

A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an "externally-deposited inverse floater"), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a "self-deposited inverse floater"). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as "(IF) - Inverse floating rate investment." An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as "(UB) - Underlying bond of an inverse floating rate trust reflected as a financing transaction," with the Fund accounting for the short-term floating rate certificates issued by the trust as "Floating rate obligations" on the Statement of Assets and Liabilities. In addition, the Fund reflects in "Investment Income" the entire earnings of

Nuveen Investments 67

| Notes to
| Financial Statements (continued)

the underlying bond and recognizes the related interest paid to the holders of the short-term floating rate certificates as a component of "Interest expense and amortization of offering costs" on the Statement of Operations.

During the fiscal year ended May 31, 2010, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters.

Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse trust" or "credit recovery swap") (such agreements referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund's potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund's inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as "Unrealized depreciation on Recourse Trusts" on the Statement of Assets and Liabilities.

At May 31, 2010, the Funds were not invested in externally-deposited Recourse Trusts.

 NORTH NORTH NORTH NORTH
 GEORGIA GEORGIA GEORGIA CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NPG) (NZX) (NKG) (NNC) (NRB) (NNO) (NII)
---------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $-- $-- $-- $-- $-- $-- $--
=====================================================================================================================

The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the fiscal year ended May 31, 2010, were as follows:

 NORTH NORTH NORTH NORTH
 GEORGIA GEORGIA GEORGIA CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NPG) (NZX) (NKG) (NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations outstanding $1,190,000 $660,000 $1,395,000 $5,195,000 $7,160,000 $4,805,000 $7,480,000
Average annual interest rate and fees 0.65% 0.65% 0.65% 0.66% 0.51% 0.48% 0.49%
==================================================================================================================================

Forward Swap Contracts
Each Fund is authorized to enter into forward interest rate swap contracts consistent with their investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality).

Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Each Fund's use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Fund's interest rate sensitivity with that of the broader municipal market. Forward interest rate swap transactions involve each Fund's agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the notional amount of the swap contract and the termination date of the swap (which is akin to a bond's maturity). The value of the Fund's swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap's termination date increases or decreases. Forward interest rate swap contracts are valued daily. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as "Unrealized appreciation or depreciation on forward swaps" with the change during the fiscal period recognized on the Statement of Operations as "Change in net unrealized appreciation (depreciation) of forward swaps."

The Funds may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward interest rate swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Net realized gains and losses during the fiscal period are recognized on the Statement of Operations as "Net realized gain (loss) from forward swaps." Each Fund intends, but is not obligated, to terminate its forward interest rate swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. The Funds did not invest in forward interest rate swap transactions during the fiscal year ended May 31, 2010.

Futures Contracts
Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives and is authorized to invest in futures contracts in attempt to manage such risk. Upon entering into a futures contract, a Fund is required to deposit with the broker an amount of cash or liquid securities equal to a specified percentage of the contract amount. This is known as the "initial margin." Cash held by the broker to cover initial margin

68 Nuveen Investments

requirements on open futures contracts, if any, is recognized as "Deposits with brokers for open futures contracts" on the Statement of Assets and Liabilities. Subsequent payments ("variation margin") are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract. Variation margin is recognized as a receivable or payable for "Variation margin on futures contracts" on the Statement of Assets and Liabilities, when applicable.

During the period the futures contract is open, changes in the value of the contract are recorded as an unrealized gain or loss by "marking-to-market" on a daily basis to reflect the changes in market value of the contract and is recognized as "Change in net unrealized appreciation (depreciation) of futures contracts" on the Statement of Operations. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into and is recognized as "Net realized gain (loss) from futures contracts" on the Statement of Operations.

Risks of investments in futures contracts include the possible adverse movement of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices. The Funds did not invest in futures contracts during the fiscal year ended May 31, 2010.

Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, where applicable. The extent of each Fund's exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange's clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.

Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties Nuveen Asset Management (the "Adviser"), a wholly-owned subsidiary of Nuveen, believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the predetermined threshold amount.

Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.

Offering Costs
Costs incurred by the Funds in connection with their offerings of MTP Shares were recorded as a deferred charge, which will be amortized over the 5-year life of the shares. Each Fund's amortized deferred charges are recognized as a component of "Interest expense and amortization of offering costs" on the Statement of Operations. Each Fund's offering costs incurred were as follows:

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
 (NPG) (NZX) (NKG)
-------------------------------------------------------------------------------
MTP Shares offering costs $653,780 $419,600 $737,233
===============================================================================

 North North North North
 Carolina Carolina Carolina Carolina
 Premium Dividend Dividend Dividend
 Income Advantage Advantage 2 Advantage 3
 (NNC) (NRB) (NNO) (NII)
-------------------------------------------------------------------------------
MTP Shares offering costs $668,198 $504,000 $710,500 $699,115
===============================================================================

Nuveen Investments 69

| Notes to
| Financial Statements (continued)

Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank.

Indemnifications
Under the Funds' organizational documents, their officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.

Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates.

2. FAIR VALUE MEASUREMENTS In determining the value of each Fund's investments, various inputs are used. These inputs are 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 each Fund's fair value measurements as of May 31, 2010:

GEORGIA PREMIUM INCOME (NPG) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------
Investments:
 Municipal Bonds $-- $83,035,864 $-- $83,035,864
========================================================================================================
GEORGIA DIVIDEND ADVANTAGE (NZX) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------
Investments:
 Municipal Bonds $-- $43,465,504 $-- $43,465,504
========================================================================================================
GEORGIA DIVIDEND ADVANTAGE 2 (NKG) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------
Investments:
 Municipal Bonds $-- $96,755,675 $-- $96,755,675
========================================================================================================
NORTH CAROLINA PREMIUM INCOME (NNC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------
Investments:
 Municipal Bonds $-- $142,179,077 $-- $142,179,077
========================================================================================================
NORTH CAROLINA DIVIDEND ADVANTAGE (NRB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------
Investments:
 Municipal Bonds $-- $56,281,380 $-- $56,281,380
========================================================================================================
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------
Investments:
 Municipal Bonds $-- $88,737,834 $-- $88,737,834
========================================================================================================
NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------
Investments:
 Municipal Bonds $-- $92,259,761 $-- $92,259,761
========================================================================================================

70 Nuveen Investments

3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Funds record derivative instruments at fair value with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds' investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. The Funds did not invest in derivative instruments during the fiscal year ended May 31, 2010.

4. FUND SHARES
Common Shares Since the inception of the Funds' repurchase program, the Funds have not repurchased any of their outstanding Common shares.

Transactions in Common shares were as follows:

 GEORGIA GEORGIA DIVIDEND GEORGIA DIVIDEND
 PREMIUM INCOME (NPG) ADVANTAGE (NZX) ADVANTAGE 2 (NKG)
 ------------------------- ------------------------- -------------------------
 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
 5/31/10 5/31/09 5/31/10 5/31/09 5/31/10 5/31/09
---------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
 due to reinvestment of distributions -- -- 686 -- 327 284
===========================================================================================================================

 NORTH CAROLINA NORTH CAROLINA
 PREMIUM INCOME (NNC) DIVIDEND ADVANTAGE (NRB)
 ------------------------- -------------------------
 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
 5/31/10 5/31/09 5/31/10 5/31/09
---------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
 due to reinvestment of distributions 5,785 -- 3,076 2,524
===========================================================================================================================

 NORTH CAROLINA NORTH CAROLINA
 DIVIDEND DIVIDEND
 ADVANTAGE 2 (NNO) ADVANTAGE 3 (NII)
 ------------------------- -------------------------
 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
 5/31/10 5/31/09 5/31/10 5/31/09
---------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
 due to reinvestment of distributions 1,620 -- 2,340 892
===========================================================================================================================

Preferred Shares

Transactions in ARPS were as follows:

 GEORGIA PREMIUM INCOME (NPG) GEORGIA DIVIDEND ADVANTAGE (NZX)
 ------------------------------------------------ -----------------------------------------------
 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
 5/31/10 5/31/09 5/31/10 5/31/09
 --------------------------------------------------------------------------------------------------
 SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ARPS redeemed and/or noticed for
 redemption:
 Series M -- $ -- -- $ -- 600 $ 15,000,000 -- $ --
 Series TH 1,112 27,800,000 -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 1,112 $ 27,800,000 -- $ -- 600 $ 15,000,000 -- $ --
====================================================================================================================================

 GEORGIA DIVIDEND ADVANTAGE 2 (NKG) NORTH CAROLINA PREMIUM INCOME (NNC)
 ------------------------------------------------ ----------------------------------------------
 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
 5/31/10 5/31/09 5/31/10 5/31/09
 --------------------------------------------------------------------------------------------------
 SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ARPS redeemed and/or noticed for
 redemption:
 Series TH -- $ -- -- $ -- 944 $ 23,600,000 66 $ 1,650,000
 Series F 1,268 31,700,000 52 1,300,000 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 1,268 $ 31,700,000 52 $ 1,300,000 944 $ 23,600,000 66 $ 1,650,000
====================================================================================================================================

Nuveen Investments 71

| Notes to
| Financial Statements (continued)

 NORTH CAROLINA DIVIDEND ADVANTAGE (NRB) NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
 ------------------------------------------------ -----------------------------------------------
 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
 5/31/10 5/31/09 5/31/10 5/31/09
 --------------------------------------------------------------------------------------------------
 SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ARPS redeemed and/or noticed for
 redemption:
 Series T 680 $ 17,000,000 -- $ -- -- $ -- -- $ --
 Series F -- -- -- -- 1,120 28,000,000 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 680 $ 17,000,000 -- $ -- 1,120 $ 28,000,000 -- $ --
====================================================================================================================================

 NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
 -----------------------------------------------
 YEAR ENDED YEAR ENDED
 5/31/10 5/31/09
 -----------------------------------------------
 SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
ARPS redeemed and/or noticed for redemption:
 Series W 1,120 $ 28,000,000 -- $ --
====================================================================================================================================

Transactions in MTP Shares were as follows:

 GEORGIA PREMIUM INCOME (NPG) GEORGIA DIVIDEND ADVANTAGE (NZX)
 -------------------------------------------------- -------------------------------------------------
 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
 5/31/10 5/31/09 5/31/10 5/31/09
 ------------------------------------------------------------------------------------------------------
 SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
MTP Shares issued:
 Series 2015 2,834,000 $ 28,340,000 -- $ -- 1,434,000 $ 14,340,000 -- $ --
====================================================================================================================================

 GEORGIA DIVIDEND ADVANTAGE 2 (NKG) NORTH CAROLINA PREMIUM INCOME (NNC)
 -------------------------------------------------- -------------------------------------------------
 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
 5/31/10 5/31/09 5/31/10 5/31/09
 ------------------------------------------------------------------------------------------------------
 SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
MTP Shares issued:
 Series 2015 3,226,500 $ 32,265,000 -- $ -- 2,430,000 $ 24,300,000 -- $ --
====================================================================================================================================

 NORTH CAROLINA DIVIDEND ADVANTAGE (NRB) NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
 -------------------------------------------------- -------------------------------------------------
 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
 5/31/10 5/31/09 5/31/10 5/31/09
 ------------------------------------------------------------------------------------------------------
 SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
MTP Shares issued:
 Series 2015 1,660,000 $ 16,600,000 -- $ -- 2,970,000 $ 29,700,000 -- $ --
====================================================================================================================================

 NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
 -------------------------------------------------
 YEAR ENDED YEAR ENDED
 5/31/10 5/31/09
 -------------------------------------------------
 SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
MTP Shares issued:
 Series 2015 2,872,500 $ 28,725,000 -- $ --
====================================================================================================================================

72 Nuveen Investments

5. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments) during the fiscal year ended May 31, 2010, were as follows:

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
 (NPG) (NZX) (NKG)
--------------------------------------------------------------------------------
Purchases $ 4,664,465 $ 2,182,634 $ 6,206,103
Sales and maturities 1,758,497 1,702,038 3,138,515
================================================================================

 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NNC) (NRB) (NNO) (NII)
--------------------------------------------------------------------------------
Purchases $ 9,879,787 $ 3,186,401 $ 8,727,576 $ 5,986,415
Sales and maturities 8,768,489 3,670,646 7,785,058 5,484,524
================================================================================

6. 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 as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.

At May 31, 2010, the cost and unrealized appreciation (depreciation) of investments as determined on a federal income tax basis, were as follows:

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
 (NPG) (NZX) (NKG)
--------------------------------------------------------------------------------
Cost of investments $ 78,402,726 $ 41,376,204 $ 92,525,026
--------------------------------------------------------------------------------
Gross unrealized:
 Appreciation $ 3,794,243 $ 1,646,441 $ 3,372,562
 Depreciation (350,733) (216,722) (537,751)
--------------------------------------------------------------------------------
Net unrealized appreciation
 (depreciation) of investments $ 3,443,510 $ 1,429,719 $ 2,834,811
================================================================================

 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NNC) (NRB) (NNO) (NII)
------------------------------------------------------------------------------------------------
Cost of investments $ 131,535,366 $ 46,859,730 $ 80,584,751 $ 81,890,907
------------------------------------------------------------------------------------------------
Gross unrealized:
 Appreciation $ 5,861,410 $ 2,425,584 $ 3,671,565 $ 3,264,432
 Depreciation (411,655) (164,122) (323,515) (375,035)
------------------------------------------------------------------------------------------------
Net unrealized appreciation
 (depreciation) of investments $ 5,449,755 $ 2,261,462 $ 3,348,050 $ 2,889,397
================================================================================================

Nuveen Investments 73

| Notes to
| Financial Statements (continued)

Permanent differences, primarily due to federal taxes paid, taxable market discount and distribution character reclassifications, resulted in reclassifications among the Funds' components of common share net assets at May 31, 2010, the Funds' tax year end, as follows:

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
 (NPG) (NZX) (NKG)
---------------------------------------------------------------------------------------------
Paid-in-surplus $ (35,347) $ (22,672) $ (49,649)
Undistributed (Over-distribution of) net investment
 income 35,322 22,661 49,646
Accumulated net realized gain (loss) 25 11 3
=============================================================================================

 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------------------
Paid-in-surplus $ (47,887) $ (17,360) $ (24,479) $ (42,501)
Undistributed (Over-distribution of) net investment
 income 47,717 17,360 24,487 42,501
Accumulated net realized gain (loss) 170 -- (8) --
======================================================================================================================

The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at May 31, 2010, the Funds' tax year end, were as follows:

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
 (NPG) (NZX) (NKG)
----------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 798,730 $ 419,283 $ 814,267
Undistributed net ordinary income ** 1,516 640 1,735
Undistributed net long-term capital gains -- -- --
================================================================================================================

 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 1,341,801 $ 583,187 $ 917,261 $ 799,267
Undistributed net ordinary income ** 5,418 -- -- 1,527
Undistributed net long-term capital gains -- -- -- --
================================================================================================================

* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on May 3, 2010, paid on June 1, 2010. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any.

74 Nuveen Investments

The tax character of distributions paid during the Funds' tax years ended May 31, 2010 and May 31, 2009, was designated for purposes of the dividends paid deduction as follows:

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
2010 (NPG) (NZX) (NKG)
----------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income*** $ 2,778,948 $ 1,553,295 $ 3,437,916
Distributions from net ordinary income** -- -- --
Distributions from net long-term capital gains**** -- -- --
============================================================================================================================

 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
2010 (NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income*** $ 4,835,850 $ 1,912,327 $ 3,044,632 $ 3,185,473
Distributions from net ordinary income** -- -- -- --
Distributions from net long-term capital gains**** -- -- 11,059 --
============================================================================================================================

 GEORGIA GEORGIA GEORGIA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2
2009 (NPG) (NZX) (NKG)
----------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 2,958,373 $ 1,633,407 $ 3,619,879
Distributions from net ordinary income** -- -- --
Distributions from net long-term capital gains -- -- --
============================================================================================================================

 NORTH NORTH NORTH NORTH
 CAROLINA CAROLINA CAROLINA CAROLINA
 PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
2009 (NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 4,870,524 $ 1,960,838 $ 3,050,360 $ 3,242,962
Distributions from net ordinary income** -- -- -- --
Distributions from net long-term capital gains -- -- -- --
============================================================================================================================

** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the fiscal year ended May 31, 2010, as Exempt Interest Dividends.
**** The Funds designate as a long term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended May 31, 2010.

Nuveen Investments 75

| Notes to
| Financial Statements (continued)

At May 31, 2010, the Funds' tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:

 GEORGIA GEORGIA GEORGIA NORTH CAROLINA NORTH CAROLINA NORTH CAROLINA NORTH CAROLINA
 PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND DIVIDEND DIVIDEND
 INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
 (NPG) (NZX) (NKG) (NNC) (NRB) (NNO) (NII)
------------------------------------------------------------------------------------------------------------------------------------
Expiration:
 May 31, 2012 $ -- $ -- $ -- $ -- $ -- $ -- $ 119,458
 May 31, 2013 -- -- 102,004 -- -- -- 36,008
 May 31, 2014 -- 28,170 287,093 -- -- -- 474,910
 May 31, 2015 -- 17,587 -- -- -- -- --
 May 31, 2016 -- -- -- -- 38,847 -- 115,010
 May 31, 2017 903,290 129,031 1,087,212 356,246 3,765 -- 42,115
 May 31, 2018 393,867 247,287 1,329,548 353,181 174,232 588,094 56,088
------------------------------------------------------------------------------------------------------------------------------------
Total $ 1,297,157 $ 422,075 $ 2,805,857 $ 709,427 $ 216,844 $ 588,094 $ 843,589
====================================================================================================================================

The following Funds have elected to defer net realized losses from investments incurred from November 1, 2009 through May 31, 2010, the Funds' tax year end, ("post-October losses") in accordance with federal income tax regulations. Post-October losses are treated as having arisen on the first day of the following fiscal year:

 GEORGIA GEORGIA NORTH CAROLINA
 PREMIUM DIVIDEND DIVIDEND
 INCOME ADVANTAGE 2 ADVANTAGE
 (NPG) (NKG) (NRB)
--------------------------------------------------------------------------------
Post-October capital losses $ 22,422 $ 51,040 $ 2,300
================================================================================

7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all fund assets managed by the Adviser. This pricing structure enables each Fund's shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.

The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:

 GEORGIA PREMIUM INCOME (NPG)
 NORTH CAROLINA PREMIUM INCOME (NNC)
AVERAGE DAILY NET ASSETS* FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================

 GEORGIA DIVIDEND ADVANTAGE (NZX)
 GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
 NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
 NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
 NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
AVERAGE DAILY NET ASSETS* FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================

76 Nuveen Investments

The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:

COMPLEX-LEVEL MANAGED ASSET BREAKPOINT
LEVEL* EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================

* The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen funds, with such daily managed assets defined separately for each fund in its management agreement, but excluding assets attributable to investments in other Nuveen funds. For the complex-level and fund-level fees, daily net assets and managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds' use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust's issuance of floating rate securities, subject to an agreement by the Adviser to limit the amount of such assets for determining managed assets in certain circumstances. As of May 31, 2010, the complex-level fee rate was .1855%.

The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds.

For the first ten years of Georgia Dividend Advantage's (NZX) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets, for fees and expenses in the amounts and for the time periods set forth below:

YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================

* From the commencement of operations.

The Adviser has not agreed to reimburse Georgia Dividend Advantage (NZX) for any portion of its fees and expenses beyond September 30, 2011.

For the first eight years of Georgia Dividend Advantage 2's (NKG) and North Carolina Dividend Advantage 3's (NII) operations, the Adviser has agreed to reimburse the Funds, as a percentage of average daily net assets, for fees and expenses in the amounts and for the time periods set forth below:

YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================

* From the commencement of operations.

The Adviser has not agreed to reimburse Georgia Dividend Advantage 2 (NKG) and North Carolina Dividend Advantage 3 (NII) for any portion of their fees and expenses beyond September 30, 2010.

Nuveen Investments 77

| Notes to
| Financial Statements (continued)

For the first ten years of North Carolina Dividend Advantage's (NRB) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets, for fees and expenses in the amounts and for the time periods set forth below:

YEAR ENDING YEAR ENDING
JANUARY 31, JANUARY 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================

* From the commencement of operations.

The Adviser has not agreed to reimburse North Carolina Dividend Advantage (NRB) for any portion of its fees and expenses beyond January 31, 2011.

For the first ten years of North Carolina Dividend Advantage 2's (NNO) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets, for fees and expenses in the amounts and for the time periods set forth below:

YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================

* From the commencement of operations.

The Adviser has not agreed to reimburse North Carolina Dividend Advantage 2 (NNO) for any portion of its fees and expenses beyond November 30, 2011.

8. NEW ACCOUNTING STANDARDS

Fair Value Measurements

On January 21, 2010, FASB issued changes to the authoritative guidance under U.S. GAAP for fair value measurements. The objective of this guidance is to provide guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires reporting entities to disclose
i) the input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements, for both Level 2 and Level 3 positions, ii) transfers between all levels (including Level 1 and Level 2) on a gross basis (i.e., transfers out must be disclosed separately from transfers in) as well as the reason(s) for the transfer and iii) purchases, sales, issuances and settlements in the Level 3 rollforward must be shown on a gross basis rather than as one net number. The effective date of the amendment is for interim and annual periods beginning after December 15, 2009, however, the requirement to provide the Level 3 activity for purchases, sales, issuances and settlements on a gross basis will be effective for interim and annual periods beginning after December 15, 2010. At this time, management is evaluating the implications of this guidance and the impact it will have to the financial statement amounts and footnote disclosures, if any.

78 Nuveen Investments

| Financial
| Highlights

Nuveen Investments 79

| Financial
| Highlights

Selected data for a Common share outstanding throughout each period:

 INVESTMENT OPERATIONS
 ---------------------------------------------------------------------
 DISTRIBUTIONS DISTRIBUTIONS
 FROM NET FROM
 INVESTMENT CAPITAL
 BEGINNING INCOME TO GAINS TO
 COMMON NET AUCTION RATE AUCTION RATE
 SHARE NET REALIZED/ PREFERRED PREFERRED
 NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
 VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL
---------------------------------------------------------------------------------------------------------------
GEORGIA PREMIUM INCOME (NPG)
---------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $ 13.72 $ .78 $ .66 $ (.02) $ -- $ 1.42
2009 14.19 .85 (.55) (.16) -- .14
2008 14.55 .84 (.30) (.24) (.01) .29
2007 14.55 .86 .04 (.23) -- .67
2006 15.19 .87 (.48) (.17) (.01) .21

GEORGIA DIVIDEND ADVANTAGE (NZX)
---------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 13.98 .84 .75 (.02) -- 1.57
2009 14.47 .91 (.57) (.17) -- .17
2008 14.65 .90 (.16) (.26) -- .48
2007 14.71 .92 .02 (.25) -- .69
2006 15.30 .94 (.47) (.19) -- .28
===============================================================================================================


 LESS DISTRIBUTIONS
 ---------------------------------------------------------
 NET
 INVESTMENT CAPITAL ENDING
 INCOME TO GAINS TO COMMON
 COMMON COMMON SHARE ENDING
 SHARE- SHARE- NET ASSET MARKET
 HOLDERS HOLDERS TOTAL VALUE VALUE
---------------------------------------------------------------------------------------------------
GEORGIA PREMIUM INCOME (NPG)
---------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $ (.68) $ -- $ (.68) $ 14.46 $ 13.95
2009 (.61) -- (.61) 13.72 12.10
2008 (.61) (.04) (.65) 14.19 13.15
2007 (.67) -- (.67) 14.55 14.12
2006 (.78) (.07) (.85) 14.55 15.16

GEORGIA DIVIDEND ADVANTAGE (NZX)
---------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 (.74) -- (.74) 14.81 15.18
2009 (.66) -- (.66) 13.98 13.46
2008 (.66) -- (.66) 14.47 13.47
2007 (.75) -- (.75) 14.65 16.00
2006 (.87) -- (.87) 14.71 15.50
===================================================================================================

 AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES
 AT END OF PERIOD AT END OF PERIOD
 --------------------------------------- --------------------------------------------------------------
 AGGREGATE AGGREGATE ENDING AVERAGE
 AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET
 OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE
 (000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE
------------------------------------------------------------------------------------------------------------------------------
GEORGIA PREMIUM INCOME (NPG)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $ -- $ -- $ -- $ 28,340 $ 10.00 $ 9.99 $ 9.99* $ 29.41
2009 27,800 25,000 71,967 -- -- -- -- --
2008 27,800 25,000 73,571 -- -- -- -- --
2007 27,800 25,000 74,784 -- -- -- -- --
2006 27,800 25,000 74,747 -- -- -- -- --

GEORGIA DIVIDEND ADVANTAGE (NZX)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 -- -- -- 14,340 10.00 9.97 9.98* $ 30.35
2009 15,000 25,000 70,871 -- -- -- -- --
2008 15,000 25,000 72,497 -- -- -- -- --
2007 15,000 25,000 73,052 -- -- -- -- --
2006 15,000 25,000 73,187 -- -- -- -- --
==============================================================================================================================

80 Nuveen Investments

 RATIOS/SUPPLEMENTAL DATA
 ---------------------------------------------------------------------------------------
 RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS
 APPLICABLE TO COMMON SHARES APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT(c) AFTER REIMBURSEMENT(c)(d)
----------------- -------------------------------------------- -----------------------------------------
 BASED ENDING
 ON NET
 BASED COMMON ASSETS
 ON SHARE NET APPLICABLE EXPENSES EXPENSES NET EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT INCLUDING EXCLUDING INVESTMENT TURNOVER
 VALUE(b) VALUE(b) SHARES(000) INTEREST(e) INTEREST INCOME INTEREST(e) INTEREST INCOME RATE
---------------------------------------------------------------------------------------------------------------
 21.21% 10.52% $ 55,018 1.69% 1.30% 5.51% N/A N/A N/A 2%
 (2.86) 1.33 52,227 1.44 1.33 6.44 N/A N/A N/A 12
 (2.17) 2.06 54,011 1.25 1.25 5.86 N/A N/A N/A 31
 (2.55) 4.62 55,359 1.25 1.25 5.84 N/A N/A N/A 4
 (4.12) 1.42 55,318 1.25 1.25 5.87 N/A N/A N/A 15

---------------------------------------------------------------------------------------------------------------

 18.75 11.41 29,179 1.76 1.37 5.62 1.58% 1.19% 5.81% 4
 5.67 1.46 27,522 1.53 1.42 6.50 1.27 1.16 6.76 8
(11.73) 3.33 28,498 1.32 1.32 5.86 .99 .99 6.19 22
 8.10 4.75 28,831 1.35 1.35 5.74 .94 .94 6.14 11
 2.91 1.87 28,912 1.31 1.31 5.82 .86 .86 6.27 5
===============================================================================================================

(a) The amounts shown are based on Common share equivalents.

(b) Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.

Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.

(c) Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares and/or MuniFund Term Preferred shares, were applicable.

(d) After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable.

(e) The expense ratios reflect, among other things, payments to MuniFund Term Preferred shareholders and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Footnote 1 - MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively.

N/A Fund does not have a contractual reimbursement with the Adviser.

* For the period February 22, 2010 (first issuance dates of shares) through May 31, 2010.

See accompanying notes to financial statements.

Nuveen Investments 81

| Financial
| Highlights (continued)

Selected data for a Common share outstanding throughout each period:

 INVESTMENT OPERATIONS
 ------------------------------------------------------------------------
 DISTRIBUTIONS DISTRIBUTIONS
 FROM NET FROM
 INVESTMENT CAPITAL
 BEGINNING INCOME TO GAINS TO
 COMMON NET AUCTION RATE AUCTION RATE
 SHARE NET REALIZED/ PREFERRED PREFERRED
 NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
 VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL
-------------------------------------------------------------------------------------------------------------
GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
-------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $ 13.27 $ .78 $ .87 $ (.02) $ -- $ 1.63
2009 13.92 .87 (.73) (.16) -- (.02)
2008 14.44 .88 (.50) (.26) -- .12
2007 14.25 .89 .17 (.24) -- .82
2006 14.71 .88 (.45) (.19) -- .24
=============================================================================================================


 LESS DISTRIBUTIONS
 -------------------------------
 NET
 INVESTMENT CAPITAL ENDING
 INCOME TO GAINS TO COMMON
 COMMON COMMON SHARE ENDING
 SHARE- SHARE- NET ASSET MARKET
 HOLDERS HOLDERS TOTAL VALUE VALUE
--------------------------------------------------------------------------------------
GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
--------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $ (.69) $ -- $ (.69) $ 14.21 $ 14.00
2009 (.63) -- (.63) 13.27 11.88
2008 (.64) -- (.64) 13.92 13.18
2007 (.63) -- (.63) 14.44 14.50
2006 (.70) -- (.70) 14.25 13.26
======================================================================================

 AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES
 AT END OF PERIOD AT END OF PERIOD
 -------------------------------------- ---------------------------------------------------------------
 AGGREGATE AGGREGATE ENDING AVERAGE
 AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET
 OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE
 (000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE
------------------------------------------------------------------------------------------------------------------------------
GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $ -- $ -- $ -- $ 32,265 $ 10.00 $ 10.00 $ 9.99* $ 30.06
2009 31,700 25,000 72,649 -- -- -- -- --
2008 33,000 25,000 73,032 -- -- -- -- --
2007 33,000 25,000 74,825 -- -- -- -- --
2006 33,000 25,000 74,168 -- -- -- -- --
==============================================================================================================================

82 Nuveen Investments

 RATIOS/SUPPLEMENTAL DATA
 --------------------------------------------------------------------------------------------------
 RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS
 APPLICABLE TO COMMON SHARES APPLICABLE TO COMMON SHARES
 TOTAL RETURNS BEFORE REIMBURSEMENT(c) AFTER REIMBURSEMENT(c)(d)
-------------------- ------------------------------------------------ ----------------------------------------------

 BASED ENDING
 ON NET
 BASED COMMON ASSETS
 ON SHARE NET APPLICABLE EXPENSES EXPENSES NET EXPENSES EXPENSES NET PORTFOLIO
 MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT INCLUDING EXCLUDING INVESTMENT TURNOVER
 VALUE(b) VALUE(b) SHARES(000) INTEREST(e) INTEREST INCOME INTEREST(e) INTEREST INCOME RATE
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
 24.23% 12.54% $ 64,721 1.75% 1.28% 5.43% 1.59% 1.12% 5.59% 3%
 (4.77) .20 60,419 1.42 1.32 6.54 1.13 1.02 6.84 13
 (4.64) .89 63,402 1.23 1.23 5.82 .83 .83 6.22 23
 14.40 5.79 65,770 1.24 1.24 5.63 .75 .75 6.11 7
 (1.61) 1.68 64,901 1.24 1.24 5.63 .76 .76 6.11 7
===========================================================================================================================

(a) The amounts shown are based on Common share equivalents.

* For the period January 29, 2010 (first issuance dates of shares) through May 31, 2010.

See accompanying notes to financial statements.

Nuveen Investments 83

| Financial
| Highlights (continued)

Selected data for a Common share outstanding throughout each period:

 INVESTMENT OPERATIONS
 ---------------------------------------------------------------------
 DISTRIBUTIONS DISTRIBUTIONS
 FROM NET FROM
 INVESTMENT CAPITAL
 BEGINNING INCOME TO GAINS TO
 COMMON NET AUCTION RATE AUCTION RATE
 SHARE NET REALIZED/ PREFERRED PREFERRED
 NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
 VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL
----------------------------------------------------------------------------------------------------------
NORTH CAROLINA PREMIUM INCOME (NNC)
----------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $ 13.78 $ .81 $ .87 $ (.03) $ -- $ 1.65
2009 13.98 .85 (.27) (.17) -- .41
2008 14.36 .84 (.35) (.23) (.01) .25
2007 14.34 .85 .07 (.23) --* .69
2006 15.16 .88 (.57) (.16) (.02) .13

NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
----------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 14.52 .94 .64 (.03) -- 1.55
2009 14.52 .95 (.08) (.17) -- .70
2008 14.78 .93 (.22) (.24) (.01) .46
2007 14.87 .93 .03 (.22) (.01) .73
2006 15.46 .94 (.48) (.17) -- .29
==========================================================================================================


 LESS DISTRIBUTIONS
 ----------------------------------
 NET
 INVESTMENT CAPITAL ENDING
 INCOME TO GAINS TO COMMON
 COMMON COMMON SHARE ENDING
 SHARE- SHARE- NET ASSET MARKET
 HOLDERS HOLDERS TOTAL VALUE VALUE
-----------------------------------------------------------------------------------------
NORTH CAROLINA PREMIUM INCOME (NNC)
-----------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $ (.71) $ -- $ (.71) $ 14.72 $ 15.37
2009 (.61) -- (.61) 13.78 12.60
2008 (.59) (.04) (.63) 13.98 13.30
2007 (.66) (.01) (.67) 14.36 14.30
2006 (.79) (.16) (.95) 14.34 15.09

NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
-----------------------------------------------------------------------------------------
Year Ended 5/31:
2010 (.81) -- (.81) 15.26 16.15
2009 (.70) -- (.70) 14.52 14.26
2008 (.69) (.03) (.72) 14.52 15.28
2007 (.77) (.05) (.82) 14.78 16.44
2006 (.88) -- (.88) 14.87 17.70
=========================================================================================

 AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES
 AT END OF PERIOD AT END OF PERIOD
 -------------------------------------- ----------------------------------------------------------------
 AGGREGATE AGGREGATE ENDING AVERAGE
 AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET
 OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE
 (000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE
-----------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA PREMIUM INCOME (NNC)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $ 21,550 $ 25,000 $ 76,020 $ 24,300 $ 10.00 $ 9.99 $ 10.01** $ 30.41
2009 46,800 25,000 71,773 -- -- -- -- --
2008 46,800 25,000 72,450 -- -- -- -- --
2007 46,800 25,000 73,713 -- -- -- -- --
2006 46,800 25,000 73,629 -- -- -- -- --

NORTH CAROLINA DIVIDEND ADVANTAGE(NRB)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 -- -- -- 16,600 10.00 10.00 9.97*** $ 30.85
2009 17,000 25,000 73,373 -- -- -- -- --
2008 17,000 25,000 73,335 -- -- -- -- --
2007 17,000 25,000 74,130 -- -- -- -- --
2006 17,000 25,000 74,319 -- -- -- -- --
=============================================================================================================================


 AUCTION RATE PREFERRED SHARES
 AND MUNIFUND TERM PREFERRED SHARES
 AT END OF PERIOD
 ------------------------------------
 ASSET COVERAGE PER $1
 LIQUIDATION PREFERENCE
-----------------------------------------------------------------------------
NORTH CAROLINA PREMIUM INCOME (NNC)
-----------------------------------------------------------------------------
Year Ended 5/31:
2010 $ 3.04
2009 --
2008 --
2007 --
2006 --

NORTH CAROLINA DIVIDEND ADVANTAGE(NRB)
-----------------------------------------------------------------------------
Year Ended 5/31:
2010 --
2009 --
2008 --
2007 --
2006 --
=============================================================================

84 Nuveen Investments

 RATIOS/SUPPLEMENTAL DATA
 --------------------------------------------------------------------------------------------------
 RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS
 APPLICABLE TO COMMON SHARES APPLICABLE TO COMMON SHARES
 TOTAL RETURNS BEFORE REIMBURSEMENT(c) AFTER REIMBURSEMENT(c)(d)
------------------ ------------------------------------------------ -----------------------------------------------

 BASED ENDING
 ON NET
 BASED COMMON ASSETS
 ON SHARE NET APPLICABLE EXPENSES EXPENSES NET EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT INCLUDING EXCLUDING INVESTMENT TURNOVER
 VALUE(b) VALUE(b) SHARES(000) INTEREST(e) INTEREST INCOME INTEREST(e) INTEREST INCOME RATE
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
 28.20% 12.24% $ 93,570 1.54% 1.25% 5.68% N/A N/A N/A 6%
 (.44) 3.22 87,558 1.39 1.32 6.43 N/A N/A N/A 4
 (2.52) 1.76 88,827 1.39 1.25 5.94 N/A N/A N/A 12
 (.78) 4.84 91,191 1.27 1.24 5.82 N/A N/A N/A 13
 (6.84) .87 91,033 1.25 1.25 5.98 N/A N/A N/A 16
-----------------------------------------------------------------------------------------------------------------------
 19.40 10.88 34,617 1.63 1.31 6.13 1.51% 1.19% 6.25% 6
 (1.82) 5.17 32,894 1.71 1.37 6.63 1.51 1.16 6.83 7
 (2.28) 3.26 32,868 1.91 1.29 6.07 1.63 1.01 6.35 6
 (2.26) 4.98 33,409 1.68 1.29 5.82 1.34 .95 6.17 15
 8.03 1.93 33,537 1.29 1.29 5.79 .86 .86 6.22 4
=======================================================================================================================

(a) The amounts shown are based on Common share equivalents.

N/A Fund does not have a contractual reimbursement with the Adviser.

* Rounds to less than $.01 per share.

** For the period January 21, 2010 (first issuance dates of shares) through May 31, 2010.

*** For the period March 30, 2010 (first issuance dates of shares) through May 31, 2010.

See accompanying notes to financial statements.

Nuveen Investments 85

| Financial
| Highlights (continued)

Selected data for a Common share outstanding throughout each period:

 INVESTMENT OPERATIONS
 ---------------------------------------------------------------------
 DISTRIBUTIONS DISTRIBUTIONS
 FROM NET FROM
 INVESTMENT CAPITAL
 BEGINNING INCOME TO GAINS TO
 COMMON NET AUCTION RATE AUCTION RATE
 SHARE NET REALIZED/ PREFERRED PREFERRED
 NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
 VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL
-------------------------------------------------------------------------------------------------------
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
-------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $ 14.31 $ .89 $ .70 $ (.03) $ --* $ 1.56
2009 14.47 .92 (.26) (.17) -- .49
2008 14.76 .91 (.24) (.25) (.02) .40
2007 14.75 .91 .10 (.23) (.01) .77
2006 15.55 .92 (.60) (.17) (.01) .14

NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
-------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 14.00 .85 .67 (.02) -- 1.50
2009 14.13 .90 (.21) (.16) -- .53
2008 14.38 .88 (.25) (.23) -- .40
2007 14.26 .89 .11 (.23) -- .77
2006 14.78 .88 (.50) (.18) -- .20
=======================================================================================================


 LESS DISTRIBUTIONS
 -----------------------
 NET
 INVESTMENT CAPITAL ENDING
 INCOME TO GAINS TO COMMON
 COMMON COMMON SHARE ENDING
 SHARE- SHARE- NET ASSET MARKET
 HOLDERS HOLDERS TOTAL VALUE VALUE
---------------------------------------------------------------------------------------
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
---------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $ (.78) $ --* $ (.78) $ 15.09 $ 15.73
2009 (.65) -- (.65) 14.31 13.60
2008 (.63) (.06) (.69) 14.47 13.66
2007 (.71) (.05) (.76) 14.76 15.50
2006 (.82) (.12) (.94) 14.75 15.28

NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
---------------------------------------------------------------------------------------
Year Ended 5/31:
2010 (.75) -- (.75) 14.75 15.86
2009 (.66) -- (.66) 14.00 13.60
2008 (.65) -- (.65) 14.13 14.12
2007 (.65) -- (.65) 14.38 14.64
2006 (.72) -- (.72) 14.26 14.42
=======================================================================================

 AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES
 AT END OF PERIOD AT END OF PERIOD
 --------------------------------------------------------------------------------------------------------
 AGGREGATE AGGREGATE ENDING AVERAGE
 AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET
 OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE
 (000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE
-------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 $ -- $ -- $ -- $ 29,700 $ 10.00 $ 9.97 $ 9.97** $ 29.05
2009 28,000 25,000 72,905 -- -- -- -- --
2008 28,000 25,000 73,428 -- -- -- -- --
2007 28,000 25,000 74,418 -- -- -- -- --
2006 28,000 25,000 74,332 -- -- -- -- --

NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010 -- -- -- 28,725 10.00 10.00 9.99*** $ 30.21
2009 28,000 25,000 74,165 -- -- -- -- --
2008 28,000 25,000 74,602 -- -- -- -- --
2007 28,000 25,000 75,457 -- -- -- -- --
2006 28,000 25,000 75,044 -- -- -- -- --
===============================================================================================================================

86 Nuveen Investments

 RATIOS/SUPPLEMENTAL DATA
 --------------------------------------------------------------------------------------------------
 RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS
 APPLICABLE TO COMMON SHARES APPLICABLE TO COMMON SHARES
 TOTAL RETURNS BEFORE REIMBURSEMENT(c) AFTER REIMBURSEMENT(c)(d)
------------------- ------------------------------------------------ -----------------------------------------------

 BASED ENDING
 ON NET
 BASED COMMON ASSETS
 ON SHARE NET APPLICABLE EXPENSES EXPENSES NET EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT INCLUDING EXCLUDING INVESTMENT TURNOVER
 VALUE(b) VALUE(b) SHARES(000) INTEREST(e) INTEREST INCOME INTEREST(e) INTEREST INCOME RATE
--------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------
 21.86% 11.11% $ 56,590 1.55% 1.27% 5.80% 1.36% 1.09% 5.99% 9%
 4.72 3.69 53,653 1.48 1.32 6.39 1.21 1.05 6.66 4
 (7.33) 2.83 54,240 1.54 1.25 5.87 1.21 .91 6.20 8
 6.64 5.24 55,349 1.39 1.24 5.68 .97 .83 6.09 9
 (.18) .97 55,251 1.24 1.24 5.62 .79 .79 6.07 9
--------------------------------------------------------------------------------------------------------------------------
 22.76 10.95 58,054 1.76 1.28 5.71 1.60 1.12 5.87 6
 1.43 4.11 55,065 1.55 1.31 6.39 1.26 1.02 6.68 4
 1.12 2.90 55,555 1.68 1.24 5.79 1.28 .84 6.19 15
 6.23 5.48 56,511 1.49 1.23 5.62 1.02 .76 6.09 12
 (1.59) 1.41 56,049 1.23 1.23 5.58 .76 .76 6.06 2
==========================================================================================================================

(a) The amounts shown are based on Common share equivalents.

* Rounds to less than $.01 per share.

** For the period March 30, 2010 (first issuance dates of shares) through May 31, 2010.

*** For the period February 9, 2010 (first issuance dates of shares) through May 31, 2010.

See accompanying notes to financial statements.

Nuveen Investments 87

Board Members & Officers

The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at nine. None of the board members who are not "interested" persons of the Funds (referred to herein as "independent board members") has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.

NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
& ADDRESS APPOINTED IN FUND COMPLEX INCLUDING OTHER
 AND TERM(1) OVERSEEN BY DIRECTORSHIPS
 BOARD MEMBER DURING PAST 5 YEARS
Independent Board Members:

ROBERT P. BREMNER(2) Private Investor and Management Consultant;
8/22/40 Chairman of Treasurer and Director, Humanities Council of
333 W. Wacker Drive the Board 1996 200 Washington, D.C.
Chicago, IL 60606 and Board Member

JACK B. EVANS President, The Hall-Perrine Foundation, a
10/22/48 private philanthropic corporation (since 1996);
333 W. Wacker Drive Board Member 1999 200 Director and Chairman, United Fire Group, a publicly
Chicago, IL 60606 held company; President Pro Tem of the Board
 of Regents for the State of Iowa University
 System; Director, Gazette Companies; Life
 Trustee of Coe College and the Iowa College
 Foundation; formerly, Director, Alliant
 Energy; formerly, Director, Federal Reserve
 Bank of Chicago; formerly, President and Chief
 Operating Officer, SCI Financial Group, Inc.,
 a regional financial services firm.

WILLIAM C. HUNTER Dean, Tippie College of Business, University of Iowa
3/6/48 (since 2006); Director (since 2004) of Xerox
333 W. Wacker Drive Board Member 2004 200 Corporation;Director(since 2005), Beta Gamma
Chicago, IL 60606 Sigma International Honor Society;formerly,
 Dean and Distinguished Professor of Finance,
 School of Business at the University of
 Connecticut (2003-2006); previously,Senior Vice
 President and Director of Research at the
 Federal Reserve Bank of Chicago (1995-2003);
 Director, SS&C Technologies, Inc. (May 2005-
 October 2005); formerly, Director (1997-2007),
 Credit Research Center at Georgetown University.

DAVID J. KUNDERT(2) Director, Northwestern Mutual Wealth Management
10/28/42 Company; retired (since 2004) as Chairman,
333 W. Wacker Drive Board Member 2005 200 JPMorgan Fleming Asset Management, President
Chicago, IL 60606 and CEO, Banc One Investment Advisors
 Corporation, and President, One Group Mutual
 Funds; prior thereto, Executive Vice President,
 Banc One Corporation and Chairman and CEO,
 Banc One Investment Management Group; Member,
 Board of Regents, Luther College; member of
 the Wisconsin Bar Association; member of Board
 of Directors, Friends of Boerner Botanical
 Gardens; member of Board of Directors and chair
 of Investment Committee, Greater Milwaukee
 Foundation.

WILLIAM J. SCHNEIDER(2) Chairman of Miller-Valentine Partners Ltd., a real
9/24/44 estate investment company; formerly, Senior Partner
333 W. Wacker Drive Board Member 1997 200 and Chief Operating Officer (retired, 2004) of
Chicago, IL 60606 Miller-Valentine Group; member, University of
 Dayton Business School Advisory Council;member,
 Mid-America Health System board; formerly,
 member and chair, Dayton Philharmonic Orchestra
 Association; formerly, member, Business
 Advisory Council,Cleveland Federal Reserve
 Bank; formerly, Director, Dayton Development
 Coalition.

88 Nuveen Investments

NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
& ADDRESS APPOINTED IN FUND COMPLEX INCLUDING OTHER
 AND TERM(1) OVERSEEN BY DIRECTORSHIPS
 BOARD MEMBER DURING PAST 5 YEARS
Independent Board Members:

 JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy Donnelley
 12/29/47 Board Member 1997 200 Foundation (since 1994); prior thereto, Executive
 333 W. Wacker Drive Director, Great Lakes Protection Fund (1990-1994).
 Chicago, IL 60606

 CAROLE E. STONE(2) Director, Chicago Board Options Exchange (since
 6/28/47 2006); Director, C2 Options Exchange, Incorporated
 333 W. Wacker Drive Board Member 2007 200 (since 2009); Commissioner, New York State
 Chicago, IL 60606 Commission on Public Authority Reform (since
 2005); formerly, Chair, New York Racing Association
 Oversight Board (2005-2007).

 TERENCE J. TOTH(2)
 9/29/59 Director, Legal & General Investment Management
 333 W. Wacker Drive Board Member 2008 200 America, Inc. (since 2008); Managing Partner,
 Chicago, IL 60606 Promus Capital (since 2008); formerly, CEO and
 President, Northern Trust Global Investments
 (2004-2007); Executive Vice President, Quantitative
 Management & Securities Lending (2000-2004); prior
 thereto, various positions with Northern Trust
 Company (since 1994); member: Goodman Theatre Board
 (since 2004), Chicago Fellowship Boards (since
 2005), University of Illinois Leadership Council
 Board (since 2007) and Catalyst Schools of Chicago
 Board (since 2008); formerly,member: Northern Trust
 Mutual Funds Board (2005-2007), Northern Trust
 Global Investments Board (2004-2007), Northern
 Trust Japan Board (2004-2007), Northern Trust
 Securities Inc. Board (2003-2007) and Northern
 Trust Hong Kong Board (1997-2004).

Interested Board Member:

 JOHN P. AMBOIAN(3) Chief Executive Officer (since July 2007), Director
 6/14/61 (since 1999) and Chairman (since 2007) of Nuveen
 333 W. Wacker Drive Board Member 2008 200 Investments, Inc.; Chief Executive Officer (since
 Chicago, IL 60606 2007) of Nuveen Asset Management, Nuveen
 Investments Advisors, Inc.; President (since 2005)
 of Nuveen Commodities Asset Management, LLC.

Nuveen Investments 89

Board Members & Officers (continued)

NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
AND ADDRESS APPOINTED(4) IN FUND COMPLEX DURING PAST 5 YEARS
 OVERSEEN
 BY OFFICER
Officers of the Funds:

 GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant
 9/9/56 Chief Secretary and Associate General Counsel of
 333 W. Wacker Drive Administrative 1988 200 Nuveen Investments, LLC; Managing Director,
 Chicago, IL 60606 Officer Associate General Counsel and Assistant
 Secretary, of Nuveen Asset Management (since
 2002) and of Symphony Asset Management LLC,
 (since 2003); Vice President and Assistant
 Secretary of NWQ Investment Management Company,
 LLC.(since 2002), Nuveen Investments Advisers
 Inc. (since 2002), Tradewinds Global Investors,
 LLC, and Santa Barbara Asset Management, LLC
 (since 2006), Nuveen HydePark Group LLC and
 Nuveen Investment Solutions, Inc. (since 2007);
 Managing Director (since 2004) and Assistant
 Secretary (since 1994) of Nuveen Investments,
 Inc.; Managing Director (since 2005) of Nuveen
 Commodities Asset Management, LLC; Chartered
 Financial Analyst.

 WILLIAM ADAMS IV Executive Vice President of Nuveen Investments,
 6/9/55 Inc.; Executive Vice President, U.S. Structured
 333 W. Wacker Drive Vice President 2007 125 Products of Nuveen Investments, LLC, (since
 Chicago, IL 60606 1999), ; Executive Vice President (since 2005)
 of Nuveen Commodities Asset Management, LLC.

 CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004), previously,
 1/11/62 Vice President (1993-2004) of Nuveen
 333 W. Wacker Drive Vice President 2007 125 Investments, LLC.
 Chicago, IL 60606

 NIZIDA ARRIAGA Senior Vice President of Nuveen Investments, LLC
 6/1/68 (since 2010); formerly, Vice President
 333 W. Wacker Drive Vice President 2009 200 (2007-2010); previously, Portfolio Manager,
 Chicago, IL 60606 Allstate Investments, LLC (1996-2006); Chartered
 Financial Analyst.

 MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
 2/3/66 Vice President Investments, LLC.; Vice President of Nuveen
 333 W. Wacker Drive and Assistant 2000 200 Asset Management (since 2005).
 Chicago, IL 60606 Secretary

 MARGO L. COOK
 4/11/64 Executive Vice President (since Oct 2008) of
 333 W. Wacker Drive Vice President 2009 200 Nuveen Investments, Inc.; previously, Head of
 Chicago, IL 60606 Institutional Asset Management (2007-2008) of
 Bear Stearns Asset Management; Head of
 Institutional Asset Mgt (1986-2007) of Bank of
 NY Mellon; Chartered Financial Analyst.

 LORNA C. FERGUSON Managing Director (since 2004) of Nuveen
 10/24/45 Investments, LLC and Managing Director (since
 333 W. Wacker Drive Vice President 1998 200 2005) of Nuveen Asset Management.
 Chicago, IL 60606

 STEPHEN D. FOY Senior Vice President (since 2010), formerly,
 5/31/54 Vice President Vice President (1993-2010) and Funds Controller
 333 W. Wacker Drive and Controller 1998 200 (since 1998) of Nuveen Investments, LLC; Vice
 Chicago, IL 60606 President (2005-2010) of Nuveen Asset
 Management; Certified Public Accountant.

 SCOTT S. GRACE Managing Director, Corporate Finance &
 8/20/70 Vice President Development, Treasurer (since September 2009) of
 333 W. Wacker Drive and Treasurer 2009 200 Nuveen Investments, LLC; Managing Director and
 Chicago, IL 60606 Treasurer of Nuveen Asset Management (since
 2009); formerly, Treasurer (2006-2009), Senior
 Vice President (2008-2009), previously, Vice
 President (2006-2008) of Janus Capital Group,
 Inc.; formerly, Senior Associate in Morgan
 Stanley's Global Financial Services Group (2000-
 2003); Chartered Accountant Designation.

90 Nuveen Investments

NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
AND ADDRESS APPOINTED(4) IN FUND COMPLEX DURING PAST 5 YEARS
 OVERSEEN
 BY OFFICER
Officers of the Funds:

 WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed Income
 5/7/69 Vice President 2009 136 (since 2008) of Nuveen Asset Management;
 333 W. Wacker Drive previously, Chairman, President and Chief
 Chicago, IL 60606 Executive Officer (2002 - 2007) of Northern
 Trust Global Advisors, Inc. and Chief Executive
 Investments Officer (2007) of Northern Trust
 Global Limited; Certified Public Accountant.

 WALTER M. KELLY Senior Vice President (since 2008), Vice
 2/24/70 Chief Compliance President (2006-2008) formerly, Assistant Vice
 333 W. Wacker Drive Officer and 2003 200 President and Assistant General Counsel (2003-
 Chicago, IL 60606 Vice President 2006) of Nuveen Investments, LLC; Senior Vice
 President (since 2008), formerly, Vice President
 (2006-2008) and Assistant Secretary (since 2008)
 of Nuveen Asset Management.

 DAVID J. LAMB Senior Vice President (since 2009), formerly,
 3/22/63 Vice President (2000-2009) of Nuveen
 333 W. Wacker Drive Vice President 2000 200 Investments, LLC; Vice President (since
 Chicago, IL 60606 2005) of Nuveen Asset Management; Certified
 Public Accountant.

 TINA M. LAZAR Senior Vice President (since 2009), formerly,
 8/27/61 Vice President of Nuveen Investments, LLC
 333 W. Wacker Drive Vice President 2002 200 (1999-2009); Vice President of
 Chicago, IL 60606 Nuveen Asset Management (since 2005).

 LARRY W. MARTIN Senior Vice President (since 2010), formerly,
 7/27/51 Vice President Vice President (1993- 2010), Assistant Secretary
 333 W. Wacker Drive and Assistant 1988 200 and Assistant General Counsel of Nuveen
 Chicago, IL 60606 Secretary Investments, LLC; Vice President (since 2005) and
 Assistant Secretary of Nuveen Investments, Inc.;
 Vice President (since 2005) and Assistant
 Secretary (since 1997) of Nuveen Asset
 Management; Vice President and Assistant
 Secretary of Nuveen Investments Advisers Inc.
 (since 2002); NWQ Investment Management Company,
 LLC (since 2002), Symphony Asset Management LLC
 (since 2003), Tradewinds Global Investors, LLC,
 Santa Barbara Asset Management LLC (since 2006)
 and of Nuveen HydePark Group, LLC and Nuveen
 Investment Solutions, Inc. (since 2007).

 KEVIN J. MCCARTHY Managing Director (since 2008), formerly, Vice
 3/26/66 President (2007-2008), Nuveen Investments, LLC;
 333 W. Wacker Drive Vice President Managing Director (since 2008), formerly, Vice
 Chicago, IL 60606 and Secretary 2007 200 President, and Assistant Secretary, Nuveen Asset
 Management, and Nuveen Investments Holdings,
 Inc.; Vice President (since 2007) and Assistant
 Secretary, Nuveen Investment Advisers Inc., NWQ
 Investment Management Company, LLC, Tradewinds
 Global Investors LLC, NWQ Holdings, LLC, Symphony
 Asset Management LLC, Santa Barbara Asset
 Management LLC, Nuveen HydePark Group, LLC and
 Nuveen Investment Solutions, Inc. (since 2007);
 prior thereto, Partner, Bell, Boyd & Lloyd LLP
 (1997-2007).

 JOHN V. MILLER Chief Investment Officer and Managing Director
 4/10/67 (since 2007), formerly, Vice President
 333 W. Wacker Drive Vice President 2007 136 (2002-2007) of Nuveen Asset Management and
 Chicago, IL 60606 Managing Director (since 2007), formerly Vice
 President (2002-2007) Nuveen Investments, LLC;
 Chartered Financial Analyst.

Nuveen Investments 91

Board Members & Officers (continued)

NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
AND ADDRESS APPOINTED(4) IN FUND COMPLEX DURING PAST 5 YEARS
 OVERSEEN
 BY OFFICER
Officers of the Funds:

 GREGORY MINO Senior Vice President (since 2010) of Nuveen
 1/4/71 Investments, LLC, formerly, Vice President
 333 W. Wacker Drive Vice President 2009 200 (2008-2010); previously, Director (2004-2007)
 Chicago, IL 60606 and Executive Director (2007-2008) of UBS Global
 Asset Management; previously, Vice President
 (2000-2003) and Director (2003-2004) of Merrill
 Lynch Investment Managers; Chartered Financial
 Analyst.

 CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC (since
 8/1/71 Vice President 2008); Vice President and Assistant Secretary,
 333 W. Wacker Drive and Assistant 2008 200 Nuveen Asset Management (since 2008); prior
 Chicago, IL 60606 Secretary thereto, Associate, Skadden, Arps, Slate,
 Meagher & Flom LLP (2002-2008).

 JAMES F. RUANE Vice President, Nuveen Investments, LLC (since
 7/3/62 Vice President 2007); prior thereto, Partner, Deloitte & Touche
 333 W. Wacker Drive and Assistant 2007 200 USA LLP (2005-2007), formerly, senior tax manager
 Chicago, IL 60606 Secretary (2002-2005); Certified Public Accountant.

 MARK L. WINGET Vice President, Nuveen Investments, LLC (since
 12/21/68 Vice President 2008); Vice President and Assistant Secretary,
 333 W. Wacker Drive and Assistant 2008 200 Nuveen Asset Management (since 2008); prior
 Chicago, IL 60606 Secretary thereto, Counsel, Vedder Price P.C. (1997-2007).

(1) Board Members serve three year terms, except for two board members who are elected by the holders of Preferred Shares. The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares to serve until the next annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The first year elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex.

(2) Also serves as a trustee of the Nuveen Diversified Commodity Fund, a Nuveen-sponsored commodity pool that has filed a registration statement on Form S-1 with the SEC for a proposed initial public offering. The S-1 has not been declared effective, and the commodity pool has not commenced operations.

(3) Mr. Amboian is an interested trustee because of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds.

(4) Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex.

92 Nuveen Investments

Annual Investment Management
Agreement Approval Process

The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund's board members, including by a vote of a majority of the board members who are not parties to the advisory agreement or "interested persons" of any parties (the "Independent Board Members"), cast in person at a meeting called for the purpose of considering such approval. In connection with such approvals, the fund's board members must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the advisory agreement. Accordingly, at a meeting held on May 25-26, 2010 (the "May Meeting"), the Boards of Trustees or Directors (as the case may be) (each a "Board" and each Trustee or Director, a "Board Member") of the Funds, including a majority of the Independent Board Members, considered and approved the continuation of the advisory agreements (each an "Advisory Agreement") between each Fund and Nuveen Asset Management ("NAM") for an additional one-year period. In preparation for their considerations at the May Meeting, the Board also held a separate meeting on April 21-22, 2010 (the "April Meeting"). Accordingly, the factors considered and determinations made regarding the renewals by the Independent Board Members include those made at the April Meeting.

In addition, in evaluating the Advisory Agreements, the Independent Board Members reviewed a broad range of information relating to the Funds and NAM, including absolute and comparative performance, fee and expense information for the Funds (as described in more detail below), the profitability of Nuveen for its advisory activities (which includes its wholly owned subsidiaries), and other information regarding the organization, personnel, and services provided by NAM. The Independent Board Members also met quarterly as well as at other times as the need arose during the year and took into account the information provided at such meetings and the knowledge gained therefrom. Prior to approving the renewal of the Advisory Agreements, the Independent Board Members reviewed the foregoing information with their independent legal counsel and with management, reviewed materials from independent legal counsel describing applicable law and their duties in reviewing advisory contracts, and met with independent legal counsel in private sessions without management present. The Independent Board Members considered the legal advice provided by independent legal counsel and relied upon their knowledge of NAM, its services and the Funds resulting from their meetings and other interactions throughout the year and their own business judgment in determining the factors to be considered in evaluating the Advisory Agreements. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund's Advisory Agreement. The Independent Board Members did not identify any single factor as

Nuveen Investments 93

Annual Investment Management Agreement
Approval Process (continued)

all-important or controlling. The Independent Board Members' considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below.

A. NATURE, EXTENT AND QUALITY OF SERVICES

In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of NAM's services, including advisory services and administrative services. The Independent Board Members reviewed materials outlining, among other things, NAM's organization and business; the types of services that NAM or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line, including continued activities to refinance auction rate preferred securities, manage leverage during periods of market turbulence and implement an enhanced leverage management process, modify investment mandates in light of market conditions and seek shareholder approval as necessary, maintain the fund share repurchase program and maintain shareholder communications to keep shareholders apprised of Nuveen's efforts in refinancing preferred shares. In addition to the foregoing, the Independent Board Members also noted the additional services that NAM or its affiliates provide to closed-end funds, including, in particular, Nuveen's continued commitment to supporting the secondary market for the common shares of its closed-end funds through a variety of programs designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include maintaining an investor relations program to provide timely information and education to financial advisers and investors; providing marketing for the closed-end funds; maintaining and enhancing a closed-end fund website; participating in conferences and having direct communications with analysts and financial advisors.

As part of their review, the Independent Board Members also evaluated the back- ground, experience and track record of NAM's investment personnel. In this regard, the Independent Board Members considered any changes in the personnel, and the impact on the level of services provided to the Funds, if any. The Independent Board Members also reviewed information regarding portfolio manager compensation arrangements to evaluate NAM's ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an incentive for taking undue risks.

In addition to advisory services, the Independent Board Members considered the quality of administrative services provided by NAM and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support. Given the importance of compliance, the Independent Board Members also considered NAM's compliance program, including the report of the chief compliance officer regarding the Funds' compliance policies and procedures.

Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Advisory Agreements were satisfactory.

94 Nuveen Investments

B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM

The Board considered the performance results of each Fund over various time periods. The Board reviewed, among other things, each Fund's historic investment performance as well as information comparing the Fund's performance information with that of other funds (the "Performance Peer Group") based on data provided by an independent provider of mutual fund data and with recognized and/or customized benchmarks. In this regard, the Board reviewed each Fund's total return information compared to its Performance Peer Group for the quarter, one-, three-and five-year periods ending December 31, 2009 and for the same periods ending March 31, 2010 (or for the periods available for Funds that did not exist during part of the foregoing time frame). In addition, the Board reviewed each Fund's total return information compared to recognized and/or customized benchmarks for the quarter, one-and three-year periods ending December 31, 2009 and for the same periods ending March 31, 2010 (or for the periods available for Funds that did not exist during part of the foregoing time frame). Moreover, the Board reviewed the peer ranking of the Nuveen municipal funds advised by NAM in the aggregate. The Independent Board Members also reviewed historic premium and discount levels. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings.

In reviewing peer comparison information, the Independent Board Members recognized that the Performance Peer Group of certain funds may not adequately represent the objectives and strategies of the funds, thereby limiting the usefulness of comparing a fund's performance with that of its Performance Peer Group. In this regard, the Independent Board Members considered that the Performance Peer Groups of certain funds (including the Funds) were classified as having significant differences from such funds based on considerations such as special fund objectives, potential investable universe and the composition of the peer set (e.g., the number and size of competing funds and number of competing managers).

Based on their review, the Independent Board Members determined that each Fund's investment performance over time had been satisfactory. The Independent Board Members noted that the Nuveen North Carolina Dividend Advantage Municipal Fund 3, the Nuveen North Carolina Premium Income Municipal Fund, the Nuveen North Carolina Dividend Advantage Municipal Fund 2 and the Nuveen North Carolina Dividend Advantage Municipal Fund outperformed or matched the performance of their respective benchmarks in the one-and three-year periods, whereas the Nuveen Georgia Premium Income Municipal Fund, the Nuveen Georgia Dividend Advantage Municipal Fund and the Nuveen Georgia Dividend Advantage Municipal Fund 2 outperformed the performance of their respective benchmarks in the one-year period, but underperformed their benchmarks in the three-year period.

C. FEES, EXPENSES AND PROFITABILITY

1. Fees and Expenses

The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund's gross management fees, net management fees and net expense ratios in absolute terms as well as compared to the fee and expenses of a comparable universe of unaffiliated funds based on data provided by an independent

Nuveen Investments 95

Annual Investment Management Agreement
Approval Process (continued)

fund data provider (the "Peer Universe") and in certain cases, to a more focused subset of funds in the Peer Universe (the "Peer Group") and any expense limitations.

The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe and/or Peer Group. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as: the asset level of a fund relative to peers; the limited size and particular composition of the Peer Universe or Peer Group; the investment objectives of the peers; expense anomalies; changes in the funds comprising the Peer Universe or Peer Group from year to year; levels of reimbursement; the timing of information used; the differences in the type and use of leverage; and differences in the states reflected in the Peer Universe or Peer Group may impact the comparative data, thereby limiting the ability to make a meaningful comparison with peers.

In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). Except as set forth in the following sentence, the Independent Board Members noted that the Funds had net management fees and/or net expense ratios below, at or near (within 5 basis points or less) the peer averages of their Peer Group or Peer Universe. The Nuveen Georgia Premium Income Municipal Fund and the Nuveen North Carolina Premium Income Municipal Fund had net advisory fees above the peer average but net expense ratios below the peer expense ratio average.

Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund's management fees were reasonable in light of the nature, extent and quality of services provided to the Fund.

2. Comparisons with the Fees of Other Clients

The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by NAM to other clients, including municipal separately managed accounts and passively managed municipal bond exchange traded funds (ETFs) that are sub-advised by NAM. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees.

96 Nuveen Investments

3. Profitability of Nuveen

In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2009. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they had also appointed an Independent Board Member as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen's revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition prepared by Nuveen.

In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser's particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Independent Board Members recognized Nuveen's investment in its fund business. Based on their review, the Independent Board Members concluded that Nuveen's level of profitability for its advisory activities was reasonable in light of the services provided.

In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to NAM by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NAM and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits NAM may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable.

Nuveen Investments 97

Annual Investment Management Agreement
Approval Process (continued)

D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. Further, the Independent Board Members noted that although closed-end funds may from time-to-time make additional share offerings, the growth of their assets will occur primarily through the appreciation of such funds' investment portfolio.

In addition to fund-level advisory fee breakpoints, the Board also considered the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex are generally reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen's costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base.

Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.

E. INDIRECT BENEFITS

In evaluating fees, the Independent Board Members received and considered information regarding potential "fall out" or ancillary benefits NAM or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered any revenues received by affiliates of NAM for serving as agent at Nuveen's trading desk and as co-manager in initial public offerings of new closed-end funds.

In addition to the above, the Independent Board Members considered whether NAM received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to NAM in managing the assets of the Funds and other clients. The Independent Board Members noted that NAM does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating "commissions," NAM intends to comply with the applicable safe harbor provisions.

Based on their review, the Independent Board Members concluded that any indirect benefits received by NAM as a result of its relationship with the Funds were reasonable and within acceptable parameters.

98 Nuveen Investments

F. OTHER CONSIDERATIONS

The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the Advisory Agreements are fair and reasonable, that NAM's fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.

Nuveen Investments 99

Reinvest Automatically
Easily and Conveniently

Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.

NUVEEN CLOSED-END FUNDS AUTOMATIC REINVESTMENT PLAN

Your Nuveen Closed-End Fund allows you to conveniently reinvest distributions in additional Fund shares.

By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on distributions that are reinvested.

It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.

EASY AND CONVENIENT

To make recordkeeping easy and convenient, each quarter you'll receive a statement showing your total distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.

HOW SHARES ARE PURCHASED

The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may

100 Nuveen Investments

exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.

FLEXIBLE

You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change.

You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your financial advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan.

The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.

CALL TODAY TO START REINVESTING DISTRIBUTIONS

For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787.

Nuveen Investments 101

Glossary of Terms
Used in this Report

O AUCTION RATE BOND: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have "failed," with current holders receiving a formula-based interest rate until the next scheduled auction.

O AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered.

O AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of the bonds in a Fund's portfolio, computed by weighting each bond's time to maturity (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions unless an escrow account has been established to redeem the bond before maturity. The market value weighting for an investment in an inverse floating rate security is the value of the portfolio's residual interest in the inverse floating rate trust, and does not include the value of the floating rate securities issued by the trust.

O DURATION: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's or Fund's duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds.

102 Nuveen Investments

O INVERSE FLOATERS: Inverse floating rate securities, also known as inverse floaters, are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond's par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an "inverse floater") to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond's downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond's value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis.

O MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.

O NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by subtracting the liabilities of the Fund (including any Preferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of common shares outstanding. Fund NAVs are calculated at the end of each business day.

O PRE-REFUNDING: Pre-refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond's credit rating and thus its value.

O TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment.

O ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically.

Nuveen Investments 103

Notes

104 Nuveen Investments

Other Useful Information

BOARD OF TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth

FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606

CUSTODIAN
State Street Bank & Trust
Company
Boston, MA

TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787

LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL

INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL

QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION

You may obtain (i) each Fund's quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the twelve-month period ended June 30, 2009, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com.

You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at
(202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 100 F Street NE, Washington, D.C. 20549.

CEO CERTIFICATION DISCLOSURE

Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange ("NYSE") the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.

Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.

COMMON AND PREFERRED SHARE INFORMATION

Each Fund intends to repurchase and/or redeem shares of its own common and/or preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased and/or redeemed shares of their common and/or preferred stock as shown in the accompanying table.

 COMMON SHARES PREFERRED SHARES
FUND REPURCHASED REDEEMED

NPG -- 1,112
NZX -- 600
NKG -- 1,268
NNC -- 944
NRB -- 680
NNO -- 1,120
NII -- 1,120

Any future repurchases and/or redemptions will be reported to shareholders in the next annual or semi-annual report.

Nuveen Investments 105

Nuveen Investments:
Serving Investors for Generations

Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, longterm investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.

FOCUSED ON MEETING INVESTOR NEEDS.

Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $150 billion of assets on March 31, 2010.

FIND OUT HOW WE CAN HELP YOU.

To learn more about the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest.

Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606. Please read the prospectus carefully before you invest or send money.

Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF

O Share prices

O Fund details

O Daily financial news

O Investor education

O Interactive planning tools

Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com

EAN-C-0510D

ITEM 2. CODE OF ETHICS.

As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder.
(To view the code, click on Fund Governance and then click on Code of Conduct.)

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant's Board of Directors or Trustees ("Board") determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, who is "independent" for purposes of Item 3 of Form N-CSR.

Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Nuveen North Carolina Dividend Advantage Municipal Fund 3

The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed.

The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).

SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND

 AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4)
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2010 $ 10,151 $ 15,000 $ 0 $ 850
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2009 $ 10,041 $ 0 $ 0 $ 850
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------

(1) "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services provided in connection with statutory and regulatory filings or engagements.

(2) "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees".

(3) "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning.

(4) "All Other Fees" are the aggregate fees billed for products and services for agreed upon procedures engagements performed for leveraged funds.

SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS

The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling, controlled by or under common control with NAM that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years.

The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.

FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
 BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
 AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
 SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2010 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2009 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------

NON-AUDIT SERVICES

The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.

FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
 BILLED TO ADVISER AND
 AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
 PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
 RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
 TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
 BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2010 $ 850 $ 0 $ 0 $ 850
May 31, 2009 $ 850 $ 0 $ 0 $ 850

"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees" and "All Other Fees" billed to Fund in their respective amounts from the previous table.

Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

The registrant's Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and David J. Kundert.

ITEM 6. SCHEDULE OF INVESTMENTS.

a) See Portfolio of Investments in Item 1.

b) Not applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

The registrant invests its assets primarily in municipal bonds and cash management securities. On rare occasions the registrant may acquire, directly or through a special purpose vehicle, equity securities of a municipal bond issuer whose bonds the registrant already owns when such bonds have deteriorated or are expected shortly to deteriorate significantly in credit quality. The purpose of acquiring equity securities generally will be to acquire control of the municipal bond issuer and to seek to prevent the credit deterioration or facilitate the liquidation or other workout of the distressed issuer's credit problem. In the course of exercising control of a distressed municipal issuer, NAM may pursue the registrant's interests in a variety of ways, which may entail negotiating and executing consents, agreements and other arrangements, and otherwise influencing the management of the issuer. NAM does not consider such activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but nevertheless provides reports to the registrant's Board on its control activities on a quarterly basis.

In the rare event that a municipal issuer were to issue a proxy or that the registrant were to receive a proxy issued by a cash management security, NAM would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the registrant's Board or its representative. A member of NAM's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on Form N-PX, and the results provided to the registrant's Board and made available to shareholders as required by applicable rules.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

THE PORTFOLIO MANAGER

The following individual has primary responsibility for the day-to-day implementation of the registrant's investment strategies:

NAME FUND
Daniel J. Close Nuveen North Carolina Dividend Advantage Municipal Fund 3

Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts:

 TYPE OF ACCOUNT NUMBER OF
PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS*
--------------------------------------------------------------------------------
Daniel J. Close Registered Investment Company 22 $4.87 billion
 Other Pooled Investment Vehicles 3 $70 million
 Other Accounts 5 $.28 million

* Assets are as of May 31, 2010. None of the assets in these accounts are subject to an advisory fee based on performance.

Compensation. Each portfolio manager's compensation consists of three basic elements--base salary, cash bonus and long-term incentive compensation. The compensation strategy is to annually compare overall compensation to the market in order to create a compensation structure that is competitive and consistent with similar financial services companies. As discussed below, several factors are considered in determining each portfolio manager's total compensation. In any year these factors may include, among others, the effectiveness of the investment strategies recommended by the portfolio manager's investment team, the investment performance of the accounts managed by the portfolio manager, and the overall performance of Nuveen Investments, Inc. (the parent company of NAM). Although investment performance is a factor in determining the portfolio manager's compensation, it is not necessarily a decisive factor. The portfolio manager's performance is evaluated in part by comparing manager's performance against a specified investment benchmark. This fund-specific benchmark is a customized subset (limited to bonds in each Fund's specific state and with certain maturity parameters) of the S&P/Investortools Municipal Bond index, an index comprised of bonds held by managed municipal bond fund customers of Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund holdings aggregate at least $2 million. As of May 31, 2010, the S&P/Investortools Municipal Bond index was comprised of 55,306 securities with an aggregate current market value of $1,205 billion.

Base salary. Each portfolio manager is paid a base salary that is set at a level determined by NAM in accordance with its overall compensation strategy discussed above. NAM is not under any current contractual obligation to increase a portfolio manager's base salary.

Cash bonus. Each portfolio manager is also eligible to receive an annual cash bonus. The level of this bonus is based upon evaluations and determinations made by each portfolio manager's supervisors, along with reviews submitted by his peers. These reviews and evaluations often take into account a number of factors, including the effectiveness of the investment strategies recommended to the NAM's investment team, the performance of the accounts for which he serves as portfolio manager relative to any benchmarks established for those accounts, his effectiveness in communicating investment performance to stockholders and their representatives, and his contribution to the NAM's investment process and to the execution of investment strategies. The cash bonus component is also impacted by the overall performance of Nuveen Investments, Inc. in achieving its business objectives.

Long-term incentive compensation. In connection with the acquisition of Nuveen Investments, Inc., by a group of investors lead by Madison Dearborn Partners in November 2007, certain employees, including portfolio managers, received profit interests in Nuveen's parent. These profit interests entitle the holders to participate in the appreciation in the value of Nuveen beyond the issue date and vest over five to seven years, or earlier in the case of a liquidity event. In addition, in July 2010, Nuveen Investments created and funded a trust, as part of a newly-established incentive program, which purchased shares of certain Nuveen Mutual Funds and awarded such shares, subject to vesting, to certain employees, including portfolio managers.

Material Conflicts of Interest. Each portfolio manager's simultaneous management of the registrant and the other accounts noted above may present actual or apparent conflicts of interest with respect to the allocation and aggregation of securities orders placed on behalf of the Registrant and the other account. NAM, however, believes that such potential conflicts are mitigated by the fact that the NAM has adopted several policies that address potential conflicts of interest, including best execution and trade allocation policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio securities under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time and (3) compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager, although the allocation procedures may provide allocation preferences to funds with special characteristics (such as favoring state funds versus national funds for allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct that sets forth policies regarding conflicts of interest.

Beneficial Ownership of Securities. As of May 31, 2010, the portfolio manager beneficially owned the following dollar range of equity securities issued by the Registrant and other Nuveen Funds managed by NAM's municipal investment team.

 DOLLAR RANGE OF
 DOLLAR EQUITY SECURITIES
 RANGE OF BENEFICIALLY OWNED
 EQUITY IN THE REMAINDER OF
 SECURITIES NUVEEN FUNDS
 BENEFICIALLY MANAGED BY NAM'S
NAME OF PORTFOLIO OWNED IN MUNICIPAL
MANAGER FUND FUND INVESTMENT TEAM
-----------------------------------------------------------------------------------------------------------------------
Daniel J. Close Nuveen North Carolina Dividend Advantage Municipal Fund 3 $0 $10,001-$50,000

PORTFOLIO MANAGER BIO:

Daniel J. Close, CFA, is a Senior Vice President of Nuveen Investments. Mr. Close joined Nuveen Investments in 2000 as a member of Nuveen's product management and development team, where he was responsible for the oversight and development of Nuveen's mutual fund product line. He then served as a research analyst for Nuveen's municipal investing team, covering corporate-backed, energy, transportation and utility credits. He also serves as a portfolio manager for various Nuveen Build America Bond strategies. Currently, he manages investments for 23 Nuveen-sponsored investment companies.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this item.

ITEM 11. 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 Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") (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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.

File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.

(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant's website at www.nuveen.com/CEF/Info/ Shareholder and there were no amendments during the period covered by this report. (To view the code, click on Fund Governance and then Code of Conduct.)

(a)(2) 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)) in the exact form set forth below: Ex-99.CERT Attached hereto.

(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable.

(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 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 3

By (Signature and Title) /s/ Kevin J. McCarthy
 ----------------------------------------------
 Kevin J. McCarthy
 Vice President and Secretary

Date: August 6, 2010
 -------------------------------------------------------------------

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: August 6, 2010
 -------------------------------------------------------------------

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

Date: August 6, 2010
 -------------------------------------------------------------------

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

NII Nuveen North Carolina Dividend Advantage Municipal Fund 3 IT IS A Newly Organized, Non-Diversified, Closed-End Management Invest