SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549



                                   FORM 8-K

                                CURRENT REPORT


    Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



Date of Report (date of earliest event reported): July 17, 2000

                         South Street Financial Corp.
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            (Exact name of registrant as specified in its charter)



       North Carolina                 0-21083              56-1973261
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(State or other jurisdiction        (Commission          (IRS Employer
     of incorporation)              File Number)       Identification No.)



                             155 West South Street
                        Albemarle, North Carolina 28001
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                   (Address of principal executive offices)



      Registrant's telephone number, including area code:  (704) 982-9184


                                      N/A
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         (Former name or former address, if changed since last report)


Item 5.  Other Events

         On July 17, 2000, South Street Financial Corp. (the "Registrant")
announced that its Board of Directors had authorized management to repurchase up
to 10% of the 3,409,067 shares of the Registrant's common stock that currently
are issued and outstanding.  Any repurchase will be made pursuant to the
Registrant's stock repurchase plan adopted in June 1998.  Between June 1998 and
August 2000, the Registrant has repurchased a total of 1,267,293 shares of its
issued and outstanding common stock.  The Board's action will allow management
to make repurchases, without further Board approval, when stock repurchases are
deemed prudent.  Stock repurchases will be made in accordance with Rule 10b-
18(b) of the Regulations issued under the Securities Exchange Act of 1934.


                                  SIGNATURES

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

                             SOUTH STREET FINANCIAL CORP.


Date: September 7, 2000      By:   /S/
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                                Carl M. Hill, President and
                                   Chief Executive Officer