It was growth of its mutual funds family, not legal complications, that caused NationsBank Corp. to drop the distributor of its $10 billion Nations Funds.

That, at least, is the word from Funds Distributor, the dropped company. A broke-dealer unit of First Data Corp., it was split off from Boston Co. in May when that company was acquired by Melon Bank. The fund administration part of the business - writing printing prospectuses, administrative services - stayed with Boston Co.

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