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<SEC-DOCUMENT>0000930413-04-005101.txt : 20041105
<SEC-HEADER>0000930413-04-005101.hdr.sgml : 20041105
<ACCEPTANCE-DATETIME>20041105142447
ACCESSION NUMBER:		0000930413-04-005101
CONFORMED SUBMISSION TYPE:	N-CSR
PUBLIC DOCUMENT COUNT:		10
CONFORMED PERIOD OF REPORT:	20040831
FILED AS OF DATE:		20041105
DATE AS OF CHANGE:		20041105
EFFECTIVENESS DATE:		20041105

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BLACKROCK INSURED MUNICIPAL INCOME TRUST
		CENTRAL INDEX KEY:			0001181187
		IRS NUMBER:				816105962
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		N-CSR
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-21178
		FILM NUMBER:		041122290

	BUSINESS ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		STREET 2:		MUTUAL FUND DEPARTMENT
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809
		BUSINESS PHONE:		888-825-2257

	MAIL ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		STREET 2:		MUTUAL FUND DEPARTMENT
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BLACKROCK MUNICIPAL INCOME TRUST III
		DATE OF NAME CHANGE:	20020819
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CSR
<SEQUENCE>1
<FILENAME>c33471_ncsr.htm
<TEXT>



<HTML>
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   <TITLE>c33471_ncsr</TITLE>

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<p><A name="page_1"></A></p>
<P align="center"><FONT face="serif">UNITED STATES </FONT> <br>
    <FONT face="serif">SECURITIES AND EXCHANGE COMMISSION </FONT> <br>
    <FONT face="serif">Washington, D.C. 20549 </FONT> </P>
<P align="center"> <B><FONT size=4 face="serif">FORM N-CSR </FONT></B> </P>
<P align="center"> <B><FONT face="serif">CERTIFIED SHAREHOLDER REPORT OF REGISTERED </FONT></B> <br>
    <B><FONT face="serif">MANAGEMENT INVESTMENT COMPANIES </FONT></B> </P>
<P align="center"> <FONT face="serif">Investment Company Act file number:_____<u>811-21175</u>________________________ </FONT> </P>
<P align="center"> <FONT face="serif">______________BlackRock Insured Municipal Income Trust_____________ <br>
  (Exact name of registrant as specified in charter) </FONT> </P>
<P align="center"> <FONT size=2 face="sans-serif"> </FONT></P>
<table width="100%"  border="0">
  <tr>
    <td><div align="center"><FONT face="serif">100 Bellevue Parkway, Wilmington, DE</FONT></div></td>
    <td><div align="center"><FONT face="serif">19809</FONT></div></td>
  </tr>
  <tr>
    <td colspan="2"><div align="center">
        <hr size="1" noshade>
      </div>
        <div align="center"></div></td>
  </tr>
  <tr>
    <td><div align="center"><FONT face="serif">(Address of principal executive offices)</FONT></div></td>
    <td><div align="center"><FONT face="serif">(Zip code) </FONT></div></td>
  </tr>
</table>
<P><FONT face="serif"> </FONT></P>
<P align="center"> <FONT face="serif"> Robert S. Kapito, President </FONT></P>
<P align="center"><FONT face="sans-serif"><b>BlackRock Insured Municipal Income Trust </b></FONT> </P>
<P align="center"> <FONT face="serif">40 East 52nd Street, New York, NY 10022</FONT></P>
<hr align="center" size="1" noshade>
<div align="center"><FONT face="serif">(Name and address of agent for service) </FONT></div>
<P><FONT face="serif">Registrant's telephone number, including area code: </FONT><U><FONT face="serif">888-825-2257</FONT></U><FONT face="serif">____________ </FONT></P>
<P><FONT face="serif">Date of fiscal year end:___</FONT><U><FONT face="serif">August 31, 2004</FONT></U><FONT
face="serif">______________________________ </FONT></P>
<P><FONT
face="serif">Date of reporting period:__</FONT><U><FONT face="serif"> August 31, 2004</FONT></U><FONT face="serif">_____________________________</FONT></P>
<HR noshade align="center" width="100%" size=2>
<page> <A name="page_2"></A>
<P> <B><FONT face="serif">Item 1. Reports to Shareholders</FONT></B><FONT face="serif"> </FONT> <br>
    <FONT face="serif">The Trust's annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows: </FONT></P>
<p>&nbsp;</p>
<p>

  <FONT size=1 face="sans-serif">FIXED INCOME</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=1 face="sans-serif">LIQUIDITY</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=1 face="sans-serif">EQUITIES</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=1 face="sans-serif">ALTERNATIVES</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=1 face="sans-serif">BLACKROCK SOLUTIONS</FONT></p>
<p><BR>
  <FONT size=5 face="sans-serif">BlackRock</FONT><BR>
  <FONT size=5 face="sans-serif">Closed-End Funds</FONT><BR>
  <FONT size=5 face="sans-serif">Annual Report</FONT><br>
  <BR>
<FONT size=2 face="sans-serif">August 31, 2004</FONT></p>
<hr size="3" noshade>
<p><BR>
<FONT size=2 face="sans-serif">BlackRock Insured Municipal Income Trust (BYM)</FONT></p>
<p><FONT size=2 face="sans-serif">BlackRock Municipal Bond Trust (BBK)</FONT></p>
<p><FONT size=2 face="sans-serif">BlackRock Municipal Income Trust II (BLE)</FONT></p>
<p><FONT size=2 face="sans-serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT></p>
<p><FONT size=2 face="sans-serif">BlackRock California Municipal Bond Trust (BZA)</FONT></p>
<p><FONT size=2 face="sans-serif">BlackRock California Municipal Income Trust II (BCL)</FONT></p>
<p><FONT size=2 face="sans-serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT></p>
<p><FONT size=2 face="sans-serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT></p>
<p><FONT size=2 face="sans-serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT></p>
<p><FONT size=2 face="sans-serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT></p>
<p><FONT size=2 face="sans-serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></p>
<p><FONT size=2 face="sans-serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></p>
<p><FONT size=2 face="sans-serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></p>
<p><FONT size=2 face="sans-serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="right"><img src="c33471_ncsrx1x1.jpg" border=0></p>
<p>&nbsp;</p>
<p><FONT size=1 face="sans-serif">NOT FDIC INSURED</FONT><br>
  <FONT size=1 face="sans-serif">MAY LOSE VALUE</FONT><BR>
  <FONT size=1 face="sans-serif">NO BANK GUARANTEE</FONT><BR>
  <BR>

</p>
<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_2"></A>




<A name="page_3"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="3" align=right>
      <div align="center"><B><FONT face="serif">TABLE OF CONTENTS</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">Letter to Shareholders</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">1</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">Trusts&#146; Summaries</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">2</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">Portfolios of Investments</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">16</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">Financial Statements</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Assets and Liabilities</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">44</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Operations</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">47</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Changes in Net Assets</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">50</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">Financial Highlights</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">56</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">Notes to Financial Statements</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">70</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">Report of Independent Registered Public Accounting Firm</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">77</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">Trustees Information</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">78</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">Dividend Reinvestment Plans</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">80</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">Additional Information</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">80</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>
<hr noshade>
<div align="center"><B><FONT size=2 face="serif">Privacy Principles of the Trusts</FONT></B><BR>
</div>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trusts are committed to maintaining the privacy of shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what
personal information the Trusts collect, how we protect that information and why, in certain cases, we may share information with select other parties.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Generally, the Trusts do not receive any non-public personal information relating to their shareholders, although certain non-public personal information of shareholders may become available to
the Trusts. The Trusts do not disclose any non-public personal information about their shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer
agent or third party administrator).</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trusts restrict access to non-public personal information about their shareholders to BlackRock employees with a legitimate business need for the information. The Trusts maintain physical,
electronic and procedural safeguards designed to protect the non-public personal information of their shareholders.</FONT></P>
<hr noshade>
<P>&nbsp;</P>
<P>&nbsp;</P>
<HR noshade align="center" width="100%" size=2>
<PAGE>

<div align="center">
  <p><A name="page_4"></A>




    <A name="page_5"></A>

    <B><FONT face="serif">LETTER TO SHAREHOLDERS</FONT></B></p>
  <p align="right"><BR>
  <FONT size=2 face="serif">August 31, 2004</FONT></p>
  <p align="left"><BR>
    <FONT size=2 face="serif">Dear Shareholder:</FONT><BR>
  </p>
</div>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We are pleased to report that during the annual period, the Trusts provided monthly income, as well as the opportunity to invest in various portfolios of municipal securities. This report
contains the Trusts&#146; audited financial statements and a listing of the portfolios&#146; holdings.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The portfolio management team continuously monitors the municipal bond market and adjusts the portfolios in order to gain exposure to various issuers, revenue sources and security types. This
strategy enables the Trusts to move among different sectors, credits and coupons to capitalize on changing market conditions. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The following table shows the Trusts&#146; current yields, tax-equivalent yields, closing market prices per share and net asset values (&#147;NAV&#148;) per share as of August 31,
2004.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
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    <TD><HR noshade size=1>
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    </TD>
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    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">Tax-</FONT></B>
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<B><FONT size=2 face="serif">Closing</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD colspan=2 align=left>
      <div align="center"><B><FONT size=2 face="serif">Current</FONT></B></div></TD>
	<TD colspan=2 align=left><div align="center"><b><font size=2 face="serif"> Equivalent</font></b></div></TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left><div align="center"><b><font size=2 face="serif">Market</font></b>&nbsp; </div></TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Trust (Ticker)</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">Yield</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">Yield</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<B><FONT size=2 face="serif">Price</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<B><FONT size=2 face="serif">NAV</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
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	</TD>
	<TD>
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	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM)</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.71</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">10.32</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>&nbsp;
</TD>
	<TD align=center>
<FONT size=2 face="serif">$13.97</FONT>&nbsp;
	</TD>
	<TD align=right>&nbsp;
</TD>
	<TD align=center>
<FONT size=2 face="serif">$14.62</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
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	<TD>
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	<TD>
<HR noshade size=1>
	</TD>
	<TD>
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	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK)</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">7.09</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10.91</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">14.61</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">15.00</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
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	<TD>
<HR noshade size=1>
	</TD>
	<TD>
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<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE)</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">7.22</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">11.11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">13.92</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">14.34</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
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<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.43</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9.89</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">14.00</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">14.01</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA)</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.88</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10.58</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">13.90</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">14.67</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL)</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">7.11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10.94</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">13.71</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">13.77</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.36</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9.78</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">14.14</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">14.34</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.59</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10.14</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">14.17</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">15.53</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5.71</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">8.78</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">14.99</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">15.24</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.78</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10.43</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">13.91</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">14.71</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.39</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9.83</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">14.08</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">14.18</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH)</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.62</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10.18</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">13.97</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">15.09</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY)</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.90</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10.62</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">13.70</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">14.16</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5.67</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">8.72</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">15.34</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=center>
<FONT size=2 face="serif">15.47</FONT>&nbsp;
	</TD>
</TR>
<TR>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
</TR>
<TR valign="bottom">
  <TD colspan=4 align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD colspan=4 align=left>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yields are based on closing market price. Tax-equivalent yield assumes the maximum Federal tax rate of 35%.</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock, Inc. (&#147;BlackRock&#148;), a world leader in asset management, has a proven commitment to the municipal bond market. As of June 30, 2004, BlackRock managed over $19 billion in
municipal bonds, including seven open-end and 37 closed-end municipal bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the world&#146;s largest institutional
investors. BlackRock Advisors, Inc., which manages the Trusts, is a wholly owned subsidiary of BlackRock.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">On behalf of BlackRock, we thank you for your continued trust and assure you that we remain committed to excellence in managing your assets.</FONT></P>
<P><font size="2" face="serif">Sincerely,</font></P>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="36%"><img src="c33471_ncsrx5x1.jpg" border=0></td>
    <td width="64%"><img src="c33471_ncsrx5x2.jpg" border=0></td>
  </tr>
  <tr>
    <td><font size=2 face="serif">Laurence D. Fink</font><br>
      <font size=2 face="serif">Chief Executive Officer</font><br>
      <font size=2 face="serif">BlackRock Advisors, Inc.</font></td>
    <td><font size=2 face="serif">Ralph L. Schlosstein</font><br>
      <font size=2 face="serif">President</font><br>
      <font size=2 face="serif">BlackRock Advisors, Inc.</font></td>
  </tr>
</table>

<BR>
<BR>
<BR>
<P align="center"><BR>
</P>
<P align="center">
<FONT size=2 face="serif">1</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_6"></A>




<A name="page_7"></A>

<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B><BR>
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM)</FONT></B><BR>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=85% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=2 face="serif">BYM</FONT>
      </div></TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="5%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=2 face="serif">October 31, 2002</FONT>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$13.97</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$14.62</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/04 ($13.97):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.71</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.078125</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.937500</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Leverage as of 8/31/04:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">37</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT></P>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/03</FONT></B>&nbsp;
      </div></TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Change</FONT></B>
    </div>

	  <div align="center"></div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </div></TD>
	<TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.97</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.51</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="right"><FONT size=2 face="serif">3.40</FONT>
    </div></TD>
	<TD align=left>
      <div align="left"><FONT size=2 face="serif">%</FONT>&nbsp;
    </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.91</FONT>&nbsp;
      </div></TD>
	<TD align=center>
      <div align="center"><FONT size=2 face="serif">$12.35</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
	<TD>
<HR align="left" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.62</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.64</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="right"><FONT size=2 face="serif">7.18</FONT>
    </div></TD>
	<TD align=left>
      <div align="left"><FONT size=2 face="serif">%</FONT>&nbsp;
    </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.57</FONT>&nbsp;
      </div></TD>
	<TD align=center>
      <div align="center"><FONT size=2 face="serif">$13.51</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD width="64%"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD width="9%"><HR noshade size=1>
    </TD>
    <TD width="9%"><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">32</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">19</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">33</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=64% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="8%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">82</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">83</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<p><BR>
______________</p>
<p><SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using the higher of Standard &amp; Poor&#146;s (&#147;S&amp;P&#146;s&#148;), Moody&#146;s Investors Service (&#147;Moody&#146;s&#148;) or Fitch Ratings
    (&#147;Fitch&#146;s&#148;) rating.</FONT>
</p>
<P align="center">
<FONT size=2 face="serif">2</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_8"></A>




<A name="page_9"></A>

<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B><BR>
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK)</FONT></B><BR>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=86% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=2 face="serif">BBK</FONT>
      </div></TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="8%">
<HR noshade size=1>
	</TD>
	<TD width="6%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$14.61</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$15.00</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/04 ($14.61):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">7.09</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.086375</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$1.036500</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Leverage as of 8/31/04:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">37</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT></P>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/03</FONT></B>&nbsp;
      </div></TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Change</FONT></B>
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </div></TD>
	<TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.61</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.66</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">6.95</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.37</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$13.05</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.00</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.12</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">6.23</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.93</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$14.02</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=58% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="12%">
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">26</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Other</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="58%"><HR noshade size=1>
    </TD>
    <TD width="12%"><HR noshade size=1>
    </TD>
    <TD width="11%"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD width="9%"><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">29</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">27</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">28</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">30</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">32</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<p>&nbsp;</p>
<p>___________<BR>
  <SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></p>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2004, the market value of these securities was
$5,679,867 representing 2.5% of the Trust&#146;s long-term investments. </FONT></P>
<P align="center">
<FONT size=2 face="serif">3</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_10"></A>




<A name="page_11"></A>

<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B><BR>
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE)</FONT></B><BR>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=85% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=2 face="serif">BLE</FONT>
      </div></TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="6%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=2 face="serif">July 30, 2002</FONT>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$13.92</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$14.34</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/04 ($13.92):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">7.22</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.08375</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$1.00500</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Leverage as of 8/31/04:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">39</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT></P>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/03</FONT></B>&nbsp;
      </div></TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Change</FONT></B>
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </div></TD>
	<TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.92</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.11</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="right"><FONT size=2 face="serif">6.18</FONT>
    </div></TD>
	<TD align=left>
      <div align="left"><FONT size=2 face="serif">%</FONT>&nbsp;
    </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.80</FONT>&nbsp;
      </div></TD>
	<TD align=center>
      <div align="center"><FONT size=2 face="serif">$12.51</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
	<TD>
<HR align="left" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.34</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.28</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="right"><FONT size=2 face="serif">7.98</FONT>
    </div></TD>
	<TD align=left>
      <div align="left"><FONT size=2 face="serif">%</FONT>&nbsp;
    </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.16</FONT>&nbsp;
      </div></TD>
	<TD align=center>
      <div align="center"><FONT size=2 face="serif">$13.17</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=62% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="8%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">22</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">18</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">18</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD width="62%"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD width="9%"><HR noshade size=1>
    </TD>
    <TD width="12%"><HR noshade size=1>
    </TD>
    <TD width="7%"><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">28</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">29</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">27</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">CCC/Caa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<p>&nbsp;</p>
<p>__________<BR>
  <SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></p>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2004, the market value of these securities was
$13,739,067 representing 2.7% of the Trust&#146;s long-term investments. </FONT></P>
<P align="center">
<FONT size=2 face="serif">4</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_12"></A>




<A name="page_13"></A>

<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B><BR>
<B><FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT></B><BR>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=81% align=left>
<FONT size=2 face="serif">Symbol on the New York Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=2 face="serif">BCK</FONT>
      </div></TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="8%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=2 face="serif">October 31, 2002</FONT>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$14.00</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$14.01</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/04 ($14.00):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.43</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.075</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.900</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Leverage as of 8/31/04:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">39</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.</FONT></P>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/03</FONT></B>&nbsp;
      </div></TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Change</FONT></B>
      </div>

	  <div align="center"></div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </div></TD>
	<TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.00</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.01</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">7.61</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.77</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$12.41</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.01</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.09</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">7.03</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.05</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$12.94</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=59% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">30</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">30</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD width="59%"><HR noshade size=1>
    </TD>
    <TD width="11%"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD width="11%"><HR noshade size=1>
    </TD>
    <TD width="9%"><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">81</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">84</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<p>&nbsp;</p>
<p>___________<BR>
  <SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></p>
<P align="center">
<FONT size=2 face="serif">5</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_14"></A>




<A name="page_15"></A>

<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B><BR>
<B><FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA)</FONT></B><BR>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=84% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=2 face="serif">BZA</FONT>
      </div></TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="6%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$13.90</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$14.67</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/04 ($13.90):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.88</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.079656</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.955872</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Leverage as of 8/31/04:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">38</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT></P>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/03</FONT></B>&nbsp;
      </div></TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Change</FONT></B>
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </div></TD>
	<TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.90</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.15</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">5.70</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.64</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$12.45</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.67</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.71</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">7.00</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.50</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$13.59</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD width="64%"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD width="9%"><HR noshade size=1>
    </TD>
    <TD width="9%"><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">24</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">24</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">18</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Other</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="64%"><HR noshade size=1>
    </TD>
    <TD width="11%"><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD width="7%"><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">22</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">31</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">31</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">26</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">24</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">CCC/Caa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<p>___________<BR>
  <SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></p>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2004, the market value of these securities was
$8,834,282 representing 11.6% of the Trust&#146;s long-term investments. </FONT></P>
<P align="center">
<FONT size=2 face="serif">6</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_16"></A>




<A name="page_17"></A>

<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B><BR>
<B><FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL)</FONT></B><BR>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=85% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=2 face="serif">BCL</FONT>
      </div></TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="6%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=2 face="serif">July 30, 2002</FONT>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$13.71</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$13.77</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/04 ($13.71):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">7.11</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.08125</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.97500</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Leverage as of 8/31/04:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">40</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT></P>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/03</FONT></B>&nbsp;
      </div></TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Change</FONT></B>
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </div></TD>
	<TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.71</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.01</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">5.38</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.36</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$12.53</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.77</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$12.76</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">7.92</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.63</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$12.62</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=67% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="8%">
<HR noshade size=1>
	</TD>
	<TD width="7%">
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="8%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">25</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">25</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">19</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=67% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="8%">
<HR noshade size=1>
	</TD>
	<TD width="7%">
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="7%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">33</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">47</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">25</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">19</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">CCC/Caa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<p>___________<BR>
  <SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></p>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2004, the market value of these securities was
$4,211,315 representing 2.4% of the Trust&#146;s long-term investments. </FONT></P>
<P align="center">
<FONT size=2 face="serif">7</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_18"></A>




<A name="page_19"></A>

<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B><BR>
<B><FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=80% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=2 face="serif">BAF</FONT>
      </div></TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="12%">
<HR noshade size=1>
	</TD>
	<TD width="8%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=2 face="serif">October 31, 2002</FONT>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$14.14</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$14.34</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/04 ($14.14):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.36</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.075</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.900</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Leverage as of 8/31/04:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">38</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT></P>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/03</FONT></B>&nbsp;
      </div></TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Change</FONT></B>
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </div></TD>
	<TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.14</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.20</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">7.12</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.10</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$12.42</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.34</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.74</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">4.37</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.29</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$13.60</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=61% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">22</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">22</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">25</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=61% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">82</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">82</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>___________<br>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor had deemed all of these non-rated securities as of August 31, 2004, to be of investment grade quality at the time of purchase.</FONT></P>
<P align="center">
<FONT size=2 face="serif">8</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_20"></A>




<A name="page_21"></A>

<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B><BR>
<B><FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT></B><BR>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=84% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
      <div align="center"><FONT size=2 face="serif">BIE</FONT>
      </div></TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="6%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$14.17</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$15.53</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/04 ($14.17):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.59</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.077808</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.933696</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Leverage as of 8/31/04:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">37</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.</FONT></P>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/03</FONT></B>&nbsp;
      </div></TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Change</FONT></B>
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </div></TD>
	<TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.17</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.55</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">4.58</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.09</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$12.87</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.53</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.52</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">6.96</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$16.02</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$14.41</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=59% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">27</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">24</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Other</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=59% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="8%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">38</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">41</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">23</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Not Rated</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<p>___________<BR>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></p>
<P align="center">
<FONT size=2 face="serif">9</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_22"></A>




<A name="page_23"></A>

<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B><BR>
<B><FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT></B><BR>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=84% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=2 face="serif">BZM</FONT>
      </div></TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="6%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$14.99</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$15.24</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/04 ($14.99):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5.71</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.07135</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.85620</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Leverage as of 8/31/04:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">37</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.</FONT></P>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/03</FONT></B>&nbsp;
      </div></TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Change</FONT></B>
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </div></TD>
	<TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.99</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.90</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">7.84</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$16.27</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$13.21</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.24</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.36</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">6.13</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.94</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$14.24</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=60% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">26</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Other</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=60% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">35</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">34</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">37</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">36</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<p>___________<BR>
  <SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></p>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2004, the market value of these securities was
$1,044,840 representing 2.2% of the Trust&#146;s long-term investments. </FONT></P>
<P align="center">
<FONT size=2 face="serif">10</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_24"></A>




<A name="page_25"></A>

<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B><BR>
<B><FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT></B><BR>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=84% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
      <div align="center"><FONT size=2 face="serif">BLJ</FONT>
      </div></TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="6%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$13.91</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$14.71</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/04 ($13.91):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.78</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.078582</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.942984</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Leverage as of 8/31/04:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">38</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.</FONT></P>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/03</FONT></B>&nbsp;
      </div></TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Change</FONT></B>
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </div></TD>
	<TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.91</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.64</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">1.98</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.05</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$12.82</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.71</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.77</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">6.83</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.58</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$13.66</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=64% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="8%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">29</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">24</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Other</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="64%"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD width="9%"><HR noshade size=1>
    </TD>
    <TD width="9%"><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">25</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">28</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">29</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">31</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">43</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">33</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Not Rated</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<p>___________<BR>
  <SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></p>
<P align="center">
<FONT size=2 face="serif">11</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_26"></A>




<A name="page_27"></A>

<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B><BR>
<B><FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></B><BR>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=81% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=2 face="serif">BSE</FONT>
      </div></TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="8%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=2 face="serif">October 31, 2002</FONT>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$14.08</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$14.18</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/04 ($14.08):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.39</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.075</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.900</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Leverage as of 8/31/04:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">38</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.</FONT></P>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/03</FONT></B>&nbsp;
      </div></TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Change</FONT></B>
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </div></TD>
	<TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.08</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.28</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">6.02</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.00</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$12.21</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.18</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.45</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">5.43</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.34</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$13.31</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=59% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">33</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">29</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">33</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">33</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=59% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">82</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">82</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<p>___________<BR>
  <SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></p>
<P align="center">
<FONT size=2 face="serif">12</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_28"></A>




<A name="page_29"></A>

<P>
<B><FONT face="serif">TRUST SUMMARIES AUGUST 31, 2004</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=85% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=2 face="serif">BQH</FONT>
      </div></TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="6%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$13.97</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$15.09</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/04 ($13.97):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6.62</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.077099</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.925188</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Leverage as of 8/31/04:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">37</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT></P>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/03</FONT></B>&nbsp;
      </div></TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Change</FONT></B>
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </div></TD>
	<TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.97</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$13.35</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">4.64</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.86</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$12.55</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.09</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.15</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">6.64</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.89</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$14.04</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=63% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">14</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">2</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Other</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=63% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="8%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">22</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">25</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">26</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">32</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">38</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">CCC/Caa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Not Rated</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<p>___________<BR>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></p>
<P align="center">
<FONT size=2 face="serif">13</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_30"></A>




<A name="page_31"></A>

<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B><BR>
<B><FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></B><BR>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
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<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
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	<TD colspan="2" align=right>
      <div align="center"><FONT size=2 face="serif">BFY</FONT>
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<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
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<FONT size=2 face="serif">July 30, 2002</FONT>
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<FONT size=2 face="serif">Closing Market Price as of 8/31/04:</FONT>&nbsp;
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<FONT size=2 face="serif">$13.70</FONT>
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	<TD align=left>&nbsp;

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<FONT size=2 face="serif">Net Asset Value as of 8/31/04:</FONT>&nbsp;
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<FONT size=2 face="serif">$14.16</FONT>
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<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/04 ($13.70):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
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<FONT size=2 face="serif">6.90</FONT>
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<FONT size=2 face="serif">%</FONT>&nbsp;
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<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
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<FONT size=2 face="serif">$0.07875</FONT>
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<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
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<FONT size=2 face="serif">$0.94500</FONT>
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<FONT size=2 face="serif">Leverage as of 8/31/04:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
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<FONT size=2 face="serif">39</FONT>
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<FONT size=2 face="serif">%</FONT>&nbsp;
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<BR>
<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.</FONT></P>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
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	<TD align=left>&nbsp;

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      <div align="center"><B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
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      <div align="center"><B><FONT size=2 face="serif">8/31/03</FONT></B>&nbsp;
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      <div align="center"><B><FONT size=2 face="serif">Change</FONT></B>
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      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>&nbsp;
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<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
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<FONT size=2 face="serif">Market Price</FONT>&nbsp;
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      <div align="center"><FONT size=2 face="serif">$13.70</FONT>&nbsp;
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      <div align="center"><FONT size=2 face="serif">$13.12</FONT>&nbsp;
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<FONT size=2 face="serif">4.42</FONT>
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<FONT size=2 face="serif">%</FONT>&nbsp;
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      <div align="center"><FONT size=2 face="serif">$14.63</FONT>&nbsp;
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<FONT size=2 face="serif">$12.10</FONT>&nbsp;
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<FONT size=2 face="serif">NAV</FONT>&nbsp;
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      <div align="center"><FONT size=2 face="serif">$14.16</FONT>&nbsp;
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      <div align="center"><FONT size=2 face="serif">$13.36</FONT>&nbsp;
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	<TD align=right>
<FONT size=2 face="serif">5.99</FONT>
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<FONT size=2 face="serif">%</FONT>&nbsp;
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	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.14</FONT>&nbsp;
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<FONT size=2 face="serif">$13.24</FONT>&nbsp;
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<BR>
<P align="left">
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
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<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
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	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
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	<TD width="9%">
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	<TD width="10%">
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	<TD width="9%">
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<FONT size=2 face="serif">Transportation</FONT>&nbsp;
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	<TD align=right>
<FONT size=2 face="serif">20</FONT>
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	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
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	<TD align=right>
<FONT size=2 face="serif">21</FONT>
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<FONT size=2 face="serif">Education</FONT>&nbsp;
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	<TD align=right>
<FONT size=2 face="serif">19</FONT>
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	</TD>
	<TD align=right>
<FONT size=2 face="serif">23</FONT>
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<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">14</FONT>
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	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
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<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
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	<TD align=right>
<FONT size=2 face="serif">10</FONT>
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	</TD>
	<TD align=right>
<FONT size=2 face="serif">10</FONT>
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<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
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	<TD align=right>
<FONT size=2 face="serif">9</FONT>
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	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
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<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
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	<TD align=right>
<FONT size=2 face="serif">9</FONT>
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	</TD>
	<TD align=right>
<FONT size=2 face="serif">9</FONT>
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<FONT size=2 face="serif">Housing</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">7</FONT>
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	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
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<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">6</FONT>
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	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">8</FONT>
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	<TD align=left>&nbsp;

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<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
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<FONT size=2 face="serif">Power</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
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	<TD align=left>&nbsp;

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<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
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<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
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	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
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<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">21</FONT>
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<FONT size=2 face="serif">%</FONT>&nbsp;
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<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">43</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">45</FONT>
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	<TD align=left>&nbsp;

	</TD>
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	<TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">20</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">27</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
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<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
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	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">CCC/Caa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>___________<br>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P align="center">
<FONT size=2 face="serif">14</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_32"></A>




<A name="page_33"></A>

<B><FONT face="serif">TRUST SUMMARIES </FONT></B><BR>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B><BR>
<B><FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT></B><BR>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=84% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=2 face="serif">BHV</FONT>
      </div></TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="6%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$15.34</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 8/31/04:</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$15.47</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 8/31/04 ($15.34):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5.67</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.072428</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">$0.869136</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Leverage as of 8/31/04:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">37</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT></P>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR align="center" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">8/31/03</FONT></B>&nbsp;
      </div></TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Change</FONT></B>
      </div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </div></TD>
	<TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.34</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.40</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">6.53</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$17.25</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$13.70</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR align="center" size=1 noshade>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$15.47</FONT>&nbsp;
      </div></TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$14.46</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=2 face="serif">6.98</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
      <div align="center"><FONT size=2 face="serif">$16.25</FONT>&nbsp;
      </div></TD>
	<TD align=center>
<FONT size=2 face="serif">$14.35</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD width=62% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="11%">
<HR noshade size=1>
	</TD>
	<TD width="9%">
<HR noshade size=1>
	</TD>
	<TD width="10%">
<HR noshade size=1>
	</TD>
	<TD width="8%">
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">18</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">19</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">17</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">19</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Other</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">5</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">4</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR>
    <TD width="62%"><HR noshade size=1>
    </TD>
    <TD width="11%"><HR noshade size=1>
    </TD>
    <TD width="9%"><HR noshade size=1>
    </TD>
    <TD width="10%"><HR noshade size=1>
    </TD>
    <TD width="8%"><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2003</FONT></B>
	</TD>
  </TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">46</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">47</FONT>
	</TD>
	<TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">16</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">15</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">21</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">12</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">3</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="serif">11</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=2 face="serif">13</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P>___________<br>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2004, the market value of these securities was
$2,545,242 representing 7.0% of the Trust&#146;s long-term investments.</FONT></P>
<P align="center">
<FONT size=2 face="serif">15</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_34"></A>




<A name="page_35"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan=4 align=left>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS</FONT></B>&nbsp;
	</TD>
	<TD width=3%>&nbsp;
	</TD>
	<TD width=6% align=left>

	</TD>
	<TD width=6% align=left>&nbsp;

	</TD>
	<TD width=2%>&nbsp;
	</TD>
	<TD width=1% align=left>

	</TD>
	<TD width=5% align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan=4 align=left>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan=4 align=left>
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM)</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=10>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD width=15% align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;
	</TD>
	<TD colspan=2 align=left><div align="center"><b><font size=2 face="serif">Principal</font></b></div></TD>
	<TD width=51% align=left>&nbsp;</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD colspan=2 align=left>
      <div align="center"><B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </div></TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;
	</TD>
	<TD colspan=2 align=left>
      <div align="center"><B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
      </div></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
      </div>	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="7%">
<HR noshade size=1>
	</TD>
	<TD width="4%">
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD><HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD><HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;154.7%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Alabama&#151;11.8%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA </FONT>
      </div></TD>
	<TD align=right><font size=1 face="serif">$ 40,000</font><sup></sup></TD>
	<TD align=left><sup><font size=1 face="serif">3</font></sup>

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Jefferson Cnty. Swr., Ser. D, 5.00%, 08/01/12, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">$</FONT>
	</TD>
	<TD align=right>
<FONT size=1 face="serif">44,966,400</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=2>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">California&#151;28.9%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A2</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">14,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.375%, 5/01/22</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">05/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">14,924,700</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,100</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">California Infrastructure &amp; Econ. Dev., Bay Area Toll Brdgs., Ser. A, 5.00%, 7/01/36, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,267,054</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Golden St. Tobacco Sec. Corp.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">6,500</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.625%, 6/01/40</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,959,135</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">22,500</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.00%, 6/01/43, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">22,596,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">17,500</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Met. Wtr. Dist. So. California, Ser. B-1, 5.00%, 10/01/33, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">17,861,725</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">15,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">San Francisco City &amp; Cnty. Pub. Utils. Comm., Wtr. Rev., Ser. A, 5.00%, 11/01/31, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">11/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">15,260,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">53,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">San Joaquin Hills Transp. Corridor Agcy., Toll Road Rev., Ser. A, Zero Coupon, 1/15/31, MBIA .</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">12,480,440</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,910</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Univ. of California, Ser. O, 5.00%, 9/01/28, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">09/10</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">11,148,820</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">110,499,024</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Colorado&#151;4.1%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">15,250</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Colorado Wtr. Rec. &amp; Pwr. Dev. Auth., Parker Wtr. &amp; San. Dist., Ser. D,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 9/01/43, MBIA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">09/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">15,770,635</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">District of Columbia&#151;2.3%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">9,500</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp., 6.75%, 5/15/40</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">05/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">8,770,210</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Georgia&#151;5.3%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">9,555</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Atlanta Wtr. &amp; Wstwtr., Ser. A, 5.00%, 11/01/38, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">05/09</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">9,710,269</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">De Kalb Cnty. Dev. Auth., PCR, General Mtrs. Corp. Proj., 6.00%, 3/15/21</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">12/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,628,200</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">20,338,469</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Illinois&#151;11.9%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">11,550</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Chicago Spec. Transp., 5.25%, 1/01/31, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">01/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">11,924,797</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">9,150</FONT>
	</TD>
	<TD align=left><sup><font size=1 face="serif">3</font></sup>

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Chicago Wtr., 5.00%, 11/01/11, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">N/A</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,252,209</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD colspan=3 align=left>
<FONT size=1 face="serif">Met. Pier &amp; Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj., MBIA,</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">18,835</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 12/15/28</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">19,131,463</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">15,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 6/15/28</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">4,264,350</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">45,572,819</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Massachusetts&#151;6.3%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">24,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Massachusetts Tpke. Auth., Met. Hwy. Sys. Rev., Ser. A, 5.00%, 1/01/39, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">01/09</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">24,090,960</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Michigan&#151;1.3%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Detroit City Sch. Dist., GO, Ser. A, 5.125%, 5/01/31, FSA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">05/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,119,100</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Nevada&#151;9.6%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">8,335</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Clark Cnty. Arpt., Ser. A-2, 5.00%, 7/01/36, FGIC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">8,388,427</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">6,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Reno Transp. Proj., 5.125%, 6/01/32, AMBAC</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">6,120,840</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Truckee Meadows Wtr. Auth., Ser. A, FSA,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 7/01/25</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,248,400</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">6,500</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.125%, 7/01/30</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">6,700,980</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 7/01/34</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,182,000</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">36,640,647</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">New Jersey&#151;4.0%</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp.,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">2,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.125%, 6/01/24</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,908,100</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,510</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 6/01/43</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,023,690</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,670</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.00%, 6/01/41</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,287,480</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">15,219,270</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">16</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_36"></A>




<A name="page_37"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM) (continued)</FONT></B>&nbsp;
	</TD>
	<TD width=8% align=left>

	</TD>
	<TD width=8% align=left>&nbsp;

	</TD>
	<TD width=2%>&nbsp;
	</TD>
	<TD width=10% align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD width=9% align=left>&nbsp;</TD>
  <TD width=2% align=left></TD>
  <TD colspan=3 align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD width=8% align=left>
      <div align="center"><B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
      </div></TD>
	<TD width=6% align=left>&nbsp;</TD>
	<TD width=47% align=left>&nbsp;</TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD>
	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left><div align="center"><B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;</div></TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD colspan="2" align=center>
      <div align="center"><B><FONT size=2 face="serif">Option Call</FONT></B>
      </div>

	  <div align="center"></div></TD>
	<TD>
	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=center><div align="center"><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
	    </div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=right><div align="center"><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp;</div>
    </TD>
	<TD>
	  <div align="center"></div></TD>
	<TD align=left><div align="center"><B><FONT size=2
face="serif">Description</FONT></B>&nbsp;    </div></TD>
	<TD colspan="2" align=center><div align="center"><B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
	    </div>

	  <div align="center"></div></TD>
	<TD>
	  <div align="center"></div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD><HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD><HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">New York&#151;4.6%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">$</FONT>
	</TD>
	<TD align=right>
<FONT size=1 face="serif">7,305</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">New York City Mun. Wtr. Fin. Auth., Wtr. &amp; Swr. Sys. Rev., Ser. C, 5.00%, 6/15/35, AMBAC</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100 </FONT>&nbsp;
	</TD>
	<TD><font size=1 face="serif">$</font>
	</TD>
	<TD align=right>
<FONT size=1 face="serif">7,419,762</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">New York City Trust Cultural Resources, American Museum of Natural History, Ser. A,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 7/01/44, MBIA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,118,600</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">17,538,362</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Pennsylvania&#151;3.9%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Lebanon Cnty. Hlth. Facs. Auth., Good Samaritan Hosp. Proj., 6.00%, 11/15/35</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">11/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,081,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">4,560</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Pennsylvania Tpke. Comm., 5.00%, 7/15/41, AMBAC</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">4,602,864</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,200</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Philadelphia Gas Wks., Ser. 3, 5.125%, 8/01/31, FSA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">08/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,297,812</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">14,982,276</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">South Carolina&#151;14.5%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">So. Carolina Pub. Svc. Auth., Ser. B, 5.50%, 1/01/36, FSA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">01/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,286,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">So. Carolina Transp. Infrastructure Bank, AMBAC,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">9,000</FONT>
	</TD>
	<TD><sup><font size=1 face="serif">3</font></sup>
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 10/01/11</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,121,670</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">12,750</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 10/01/33</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">12,945,330</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">12,660</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.125%, 10/01/26</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">13,087,782</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">15,385</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Tobacco Settlement Rev. Mgmt. Auth., Ser. B, 6.375%, 5/15/28</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">05/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">13,850,192</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">55,291,574</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Tennessee&#151;3.8%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Knox Cnty. Hlth. Edl. &amp; Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A, FSA,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">11,705</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 1/01/22</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">01/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 59.566</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">4,517,545</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">9,260</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 1/01/23</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">01/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 56.016</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,341,101</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">8,500</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 1/01/24</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">01/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 52.749</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">2,868,665</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">6,850</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 1/01/25</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">01/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 49.712</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">2,167,545</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 1/01/26</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">01/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 46.781</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,477,650</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">14,372,506</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Texas&#151;29.9%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,700</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Comal Cnty. Hlth. Facs., Hlth. Care Sys., McKenna Mem. Proj., Ser. A, 6.25%, 2/01/32</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">02/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,757,979</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,030</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Coppell Indpt. Sch. Dist., Zero Coupon, 8/15/30</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">2,441,202</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">2,350</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Dallas Area Rapid Trans., 5.00%, 12/01/31, AMBAC</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">12/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">2,371,056</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Harris Cnty.,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">7,485</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">GO, Zero Coupon, 8/15/25, MBIA</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">2,512,939</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,915</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">GO, Zero Coupon, 8/15/28, MBIA</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,032,842</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,510</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Toll Road Rev., 5.00%, 8/15/30, FSA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">08/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,567,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Harris Cnty. Sports Auth., MBIA,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">26,890</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-3, Zero Coupon, 11/15/38</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">11/24</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 43.826</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,753,306</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">27,675</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-3, Zero Coupon, 11/15/39</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">11/24</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 41.258</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,634,558</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,785</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. H, Zero Coupon, 11/15/38</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">11/31</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 64.91</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">806,950</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">6,160</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. H, Zero Coupon, 11/15/39</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">11/31</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 60.976</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">806,713</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">25,000</FONT></TD>
	<TD><sup><font size=1 face="serif">3,4</font></sup>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Houston Wtr. &amp; Swr. Sys., Ser. A, 5.00%, 12/01/12, FSA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">N/A</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">28,025,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">9,500</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Northside Indpt. Sch. Dist., Sch. Bldg. Rmkt, 5.125%, 6/15/29</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">9,711,280</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">San Antonio Wtr., FGIC,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">9,350</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.125%, 5/15/29</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">05/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">9,607,686</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.125%, 5/15/34</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">05/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,236,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">25,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Texas Tpke. Auth., Central Sys. Rev., Ser. A, 5.00%, 8/15/42, AMBAC</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">08/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">25,049,500</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Tyler Cnty. Hlth. Facs. Dev., Mother Frances Hosp., 6.00%, 7/01/31</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,082,680</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">114,398,491</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Virginia&#151;2.0%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Chesterfield Cnty. Indl. Dev. Auth., PCR, Elec. &amp; Pwr. Co.,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.875%, 6/01/17</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">11/10</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 102</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,308,310</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">4,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.875%, 6/01/17</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">11/10</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 102</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">4,411,080</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">7,719,390</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Washington&#151;6.4%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,655</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Chelan Cnty. Pub. Util. Dist. 1, Chelan Hydro Sys., Ser. C, 5.125%, 7/01/33, AMBAC</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,726,930</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">4,500</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Port of Seattle, Ser. A, 5.00%, 4/01/31, FGIC</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">4,526,190</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">9,500</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Seattle, GO, Ser. F, 5.125%, 12/15/28, MBIA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">12/08</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">9,627,680</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">6,380</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Washington, GO, Ser. A, 5.00%, 7/01/25, FSA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">6,504,729</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">24,385,529</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">17</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_38"></A>




<A name="page_39"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan=6 align=left>
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM) (continued)</FONT></B>&nbsp;
	</TD>
	<TD width=8% align=left>

	</TD>
	<TD width=7% align=left>&nbsp;

	</TD>
	<TD width=1% align=left>&nbsp;

	</TD>
	<TD width=9% align=left>

	</TD>
	<TD width=1% align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=11>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD width=7% align=left>

	  <div align="center"></div></TD>
	<TD width=3% align=left>

	  <div align="center"></div></TD>
	<TD width=1% align=left>

	  <div align="center"></div></TD>
	<TD width=8% align=left>
      <div align="center"><B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
      </div></TD>
	<TD width=4% align=left><div align="center"></div></TD>
	<TD width=51% align=left><div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>
      <div align="center"><B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
      </div></TD>
	<TD align=left><div align="center"></div></TD>
	<TD align=left><div align="center"></div></TD>
	<TD colspan="2" align=center>
      <div align="center"><B><FONT size=2 face="serif">Option Call</FONT></B>
      </div>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
      </div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp;
      </div></TD>
	<TD>
	  <div align="center"></div></TD>
	<TD align=left> <div align="center"><B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </div></TD>
	<TD colspan="2" align=center>
      <div align="center"><B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
      </div>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>
      </div></TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD><HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">West Virginia&#151;0.3%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">$</FONT>
	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,295</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">West Virginia Econ. Dev. Auth., Correctional Juvenile Safety, Ser. A, 5.00%, 6/01/29, MBIA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">$</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,313,259</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	  <div align="center"></div></TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Wisconsin&#151;3.8%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
      <div align="center"><FONT size=1 face="serif">BBB</FONT>
      </div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">16,165</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">14,322,190</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	  <div align="center"></div></TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost $563,877,772)</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">591,311,111</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	  <div align="center"></div></TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR>
	<TD colspan=11>

	  <div align="center"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">SHORT-TERM INVESTMENTS&#151;6.3%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">California&#151;0.3%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
      <div align="center"><FONT size=1 face="serif">A1</FONT><font size=1 face="serif">+</font> </div></TD>
	<TD align=left>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,300</FONT>
	</TD>
	<TD><sup><font size=1 face="serif">5</font></sup>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">California Econ. Recovery, Ser. C-5, 1.26%, 9/01/04, FRDD</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,300,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	  <div align="center"></div></TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	  <div align="center"></div></TD>
	<TD>
	  <div align="center"></div></TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">New York&#151;0.8%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
      <div align="center"><FONT size=1 face="serif">A1</FONT><font size=1 face="serif">+</font> </div></TD>
	<TD align=left>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,000</FONT>
	</TD>
	<TD><sup><font size=1 face="serif">5</font></sup>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">New York City Transl. Fin. Auth., Ser. A-1, 1.32%, 9/01/04, FRWD</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,000,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	  <div align="center"></div></TD>
	<TD>
	  <div align="center"></div></TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Ohio&#151;1.2%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">VMIG1</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">4,500 </FONT><SUP></SUP>
	</TD>
	<TD><sup><font size=1 face="serif">5</font></sup>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Hamilton Cnty. Hosp. Facs., 1.33%, 9/02/04, FRWD</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">4,500,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	  <div align="center"></div></TD>
	<TD>
	  <div align="center"></div></TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR>
	<TD>&nbsp;

	</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><hr noshade size=1></TD>
    <TD><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD><div align="center"></div></TD>
    <TD><div align="center"></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD colspan=2 align=left><div align="center"><B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;    </div></TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">(000)</FONT></B>
      </div>	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD><hr noshade size=1>
	</TD>
	<TD>
	</TD>
	<TD>
	  <div align="center"></div></TD>
	<TD>
	  <div align="center"></div></TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;4.0%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>

	  <div align="center"></div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">15,300</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">15,300,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=1 face="serif">Total Short-Term Investments (cost $24,100,000)</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">24,100,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;161.0% (cost $587,977,772)</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">$</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">615,411,111</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Liabilities in excess of other assets&#151;(1.1)%</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">(4,152,823</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(59.9)%</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">(228,992,973</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">$</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">382,265,315</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
</TABLE>
<BR>
<P>___________<br>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or
the next date on which the rate of interest is adjusted. Rate shown as of August 31, 2004.</FONT></P>
<P>
<FONT size=1 face="serif">The value (market value plus accrued interest) of securities that are covered by insurance, which insures the payment of principal and interest, represents approximately 82.5% of the Trust&#146;s managed assets.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=center colspan=5><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=5>
<B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=8% align=left>
<FONT size=2 face="serif">AMBAC</FONT>&nbsp;
	</TD>
	<TD width=47% align=left>
<FONT size=2 face="serif">&#151; American Municipal Bond Assurance Corporation</FONT>&nbsp;
	</TD>
	<TD width=2%>&nbsp;
	</TD>
	<TD width=4% align=left>
<FONT size=2 face="serif">FSA</FONT>&nbsp;
	</TD>
	<TD width=39% align=left>
<FONT size=2 face="serif">&#151; Financial Security Assurance</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">FGIC</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">&#151; Financial Guaranty Insurance Company</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">GO</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">&#151; General Obligation</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">FRDD</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">&#151; Floating Rate Daily Demand</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">MBIA</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">&#151; Municipal Bond Insurance Association</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">FRWD</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">&#151; Floating Rate Weekly Demand</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">PCR</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">&#151; Pollution Control Revenue</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
  <TD><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
</TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">18</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_40"></A>




<A name="page_41"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan=5 align=left>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS</FONT></B>&nbsp;
	</TD>
	<TD width=7% align=left>

	</TD>
	<TD width=7% align=left>&nbsp;

	</TD>
	<TD width=1%>&nbsp;
	</TD>
	<TD width=8% align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan=5 align=left>
<B><FONT face="serif">AUGUST</FONT></B>&nbsp;
<B><FONT face="serif">31, 2004</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK)</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=9>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD width=8% align=left>&nbsp;

	</TD>
	<TD colspan=2 align=left>
      <div align="center"><B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
      </div></TD>
	<TD width=4% align=left>&nbsp;</TD>
	<TD width=56% align=left>&nbsp;</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD colspan=2 align=left><div align="center"><B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;    </div></TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
	</TD>
	<TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp;
      </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="3%">
<HR noshade size=1>
	</TD>
	<TD width="6%">
<HR noshade size=1>
	</TD>
	<TD><HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD><HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;151.1%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Alabama&#151;11.5%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=left>
      <div align="right"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
	<TD align=right>
<FONT size=1 face="serif">9,250</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Ser. A, 6.50%, 9/01/25</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">09/05</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 102 </FONT>&nbsp;
	</TD>
	<TD><div align="right"><font size=1 face="serif">$</font>
    </div></TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">9,653,855</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A2</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">7,500</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Huntsville Hlth. Care Auth., Ser. A, 5.75%, 6/01/31</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">7,764,675</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">17,418,530</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">California&#151;14.2%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Golden St. Tobacco Sec. Corp., Ser. B,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">7,300</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 6/01/43</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">7,468,338</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">4,200</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.625%, 6/01/38</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">4,339,398</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">B-</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">8,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. B, 7.50%, 12/01/24</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">12/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 102</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">6,801,920</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">San Marcos Spl. Tax, Cmnty. Facs. Dist. No. 02-01,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">465</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.90%, 9/01/28</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">09/10</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 102</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">470,013</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">865</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.95%, 9/01/35</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">09/10</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 102</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">874,307</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,585</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Val Verde Unified Sch. Dist. Fin. Auth., Spec. Tax Rev., 6.25%, 10/01/28</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 102</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">1,646,546</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">21,600,522</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Colorado&#151;6.8%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Colorado Wtr. Rec. &amp; Pwr. Dev. Auth., Parker Wtr. &amp; San. Dist., Ser. D, 5.25%, 9/01/43, MBIA .</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">09/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">10,341,400</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Connecticut&#151;3.2%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Connecticut Dev. Auth., Connecticut Lt. &amp; Pwr., PCR,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">2,200</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.85%, 9/01/28</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10/08</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 102</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">2,307,162</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,750</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.95%, 9/01/28</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10/08</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 102</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">1,825,110</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">690</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Mohegan Tribe Indians Gaming Auth., Pub. Impvt., 5.25%, 1/01/33</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">01/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">691,608</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">4,823,880</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">District of Columbia&#151;10.9%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">595</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Friendship Pub. Charter Sch. Inc., 5.25%, 6/01/33, ACA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">585,522</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">33,450</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Georgetown Univ., Ser. A, Zero Coupon, 4/01/38, MBIA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">04/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 20.243</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">4,627,808</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">6,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Tax Incr., Gallary Place Proj., 5.40%, 7/01/31, FSA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">6,256,500</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,580</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp., 6.75%, 5/15/40</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">05/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">5,151,344</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">16,621,174</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Florida&#151;18.5%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">6,200</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Martin Cnty. Indl. Dev. Auth., Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">12/04</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 102</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">6,350,226</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BB</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">2,810</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Miami Beach Hlth. Facs. Auth., Mt. Sinai Med. Ctr., 6.75%, 11/15/21</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">11/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">2,916,021</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Orange Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys., 5.625%, 11/15/32</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">11/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">10,367,900</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">7,255</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Palm Beach Cnty. Hsg. Fin. Auth., Multi-Fam. Rev., Indian Trace Apts., Ser. A,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.625%, 1/01/44, FSA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">01/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">7,484,911</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Stevens Plantation Cmnty. Dev. Dist., Spl. Assmt. Rev., Ser. A, 7.10%, 5/01/35</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">05/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">1,016,240</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">28,135,298</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Illinois&#151;18.9%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">23,065</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Bolingbrook, GO, Ser. B, Zero Coupon, 1/01/36, FGIC</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">01/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 23.018</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">3,543,707</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,150</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Centerpoint Intermodal Ctr., Ser. A, 8.00%, 6/15/23</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">1,143,583</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,880</FONT><SUP></SUP>
	</TD>
	<TD><sup><font size=1 face="serif">4</font></sup>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Chicago, GO, Ser. A, 5.50%, 1/01/38, MBIA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">01/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">6,247,147</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">6,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Illinois Edl. Facs. Auth., Student Hsg. Rev., Edl. Advancement Fund Univ. Ctr. Proj.,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 5/01/34</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">05/07</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">6,139,200</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">6,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Illinois Hlth. Facs. Auth., Lake Forest Hosp., Ser. A, 5.75%, 7/01/29</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">6,260,820</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Met. Pier &amp; Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj.,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, MBIA,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 6/15/35</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">1,909,400</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 12/15/36</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">1,755,500</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,000</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 12/15/37</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">1,652,300</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">28,651,657</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Indiana&#151;1.3%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=right>
<FONT size=1 face="serif">2,020</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="serif">Multi-Fam. Hsg., Canterbury House Apts., Ser. 1, 5.90%, 12/01/34</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">12/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="right"><FONT size=1 face="serif">1,962,874</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR align="right" size=1 noshade>
	</TD>
</TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">19</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_42"></A>




<A name="page_43"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK) (continued)</FONT></B>&nbsp;
	</TD>
	<TD width=8% align=left>

	</TD>
	<TD width=8% align=left>&nbsp;

	</TD>
	<TD width=1% align=left>

	</TD>
	<TD width=9% align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=9>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD width=8% align=left>&nbsp;

	</TD>
	<TD width=4% align=left>

	</TD>
	<TD colspan=2 align=left>
      <div align="center"><B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
      </div></TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD colspan=2 align=left><div align="center"><B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;    </div></TD>
	<TD align=left>&nbsp;</TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Option Call</FONT></B>
      </div></TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp;
      </div></TD>
	<TD width=51% align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
      </div></TD>
	<TD align=left>

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="6%">
<HR noshade size=1>
	</TD>
	<TD width="5%">
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Kansas&#151;3.5%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">$</FONT>
	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Wichita Arpt. Auth., Arpt. Facs. Rev., Cessna Citation Svc. Ctr., Ser. A, 6.25%, 6/15/32</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">$</FONT>
	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,265,950</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Louisiana&#151;0.8%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,165</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Louisiana Local Gov&#146;t. Env. Facs. &amp; Cmnty. Dev. Auth., Oakleigh Apts. Proj., Ser. A,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.375%, 6/01/38</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 102</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,173,866</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Maryland&#151;3.5%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,250</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Baltimore, Spec. Oblig. Rev., Harborview Lot No. 2, 6.50%, 7/01/31</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,299,237</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Frederick Cnty. Spl. Oblig., Urbana Cmnty. Dev. Auth., Ser. B, 6.25%, 7/01/30</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/07</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 102</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,002,070</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,040</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Maryland Hlth. &amp; Higher Edl. Facs. Auth., Medstar Hlth., 5.50%, 8/15/33</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">08/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,047,384</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,348,691</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Nevada&#151;6.2%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">8,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Clark Cnty. Arpt., Ser. A-2, 5.00%, 7/01/36, FGIC</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">8,051,280</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,400</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Las Vegas Spec. Impvt. Dist. No. 809, Summerlin Area, 5.65%, 6/01/23</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">12/04</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 103</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,391,558</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">9,442,838</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">New Jersey&#151;12.2%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">New Jersey Econ. Dev. Auth.,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">B</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Continental Airlines Inc. Proj., 7.20%, 11/15/30</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">11/10</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">2,389,260</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">7,500</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kapkowski Road Landfill Proj., 6.50%, 4/01/28</FONT>&nbsp;
	</TD>
	<TD colspan="2" align=right>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">8,529,975</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,500</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Winchester, Ser. A, 5.80%, 11/01/31</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">11/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,475,925</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp.,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">2,305</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 6/01/43</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,985,642</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">4,330</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.00%, 6/01/41</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">4,174,770</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">18,555,572</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">New York&#151;2.1%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,330</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Env. Facs. Corp., St. Clean Wtr. &amp; Drinking Wtr. Rev., NYC Mun. Wtr. Proj. B, 5.00%, 6/15/31</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,353,129</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,760</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Met. Transp. Auth., Svc. Contract, Ser. A, 5.00%, 7/01/30, AMBAC</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,786,171</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">3,139,300</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Ohio&#151;1.0%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,500</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Port Greater Cincinnati Dev. Auth., Cooperative Pub. Parking Infrastructure Proj.,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.40%, 2/15/34</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">02/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 102</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,515,615</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Oregon&#151;0.6%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Multi-Fam. Hsg., Pacific Tower Apts., Ser. 6, 6.05%, 11/01/34</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">962,420</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">South Carolina&#151;0.7%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev., Palmetto Hlth. Alliance, Ser. C,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.00%, 8/01/30</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">08/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,101,020</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Texas&#151;15.9%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,230</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Brazos River Auth., PCR, TXU Elec. Co. Proj., Ser. C, 6.75%, 10/01/38</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,299,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">940</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Dallas Area Rapid Trans., 5.00%, 12/01/31, AMBAC</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">12/11</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">948,422</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">11,690</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Harris Cnty. Houston Sports Auth., Ser. G, Zero Coupon, 11/15/41, MBIA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">11/31</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 53.779</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,348,442</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">2,840</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Multi-Fam. Hsg., Copperwood Ranch Apts., Ser. 9, 5.95%, 11/01/35</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">2,754,573</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Sabine River Auth., PCR, TXU Elec. Co. Proj., Ser. B, 6.15%, 8/01/22</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">08/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,047,380</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">60,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Texas Tpke. Auth., Central Sys. Rev., Zero Coupon, 8/15/35, AMBAC</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">08/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 25.665</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">9,655,800</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">6,840</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Tyler Cnty. Hlth. Facs. Dev., Mother Frances Hosp., 6.00%, 7/01/31</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">7,028,510</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">24,082,327</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">West Virginia&#151;0.4%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">520</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">West Virginia Econ. Dev. Auth., Correctional Juvenile Safety, Ser. A, 5.00%, 6/01/29, MBIA</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">06/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">527,332</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Wisconsin&#151;5.7%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Wisconsin Hlth. &amp; Edl. Facs. Auth.,</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,350</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Aurora Hlth. Care, 6.40%, 4/15/33</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">04/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,431,660</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">7,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wheaton Franciscan Svcs., 5.75%, 8/15/30</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">02/12</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 101</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">7,290,500</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">8,722,160</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;5.3%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">8,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Puerto Rico Hwy. &amp; Transp. Auth., Ser. G, 5.00%, 7/01/42</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">07/13</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">8,034,800</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;7.9%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">10,500</FONT><SUP></SUP>
	</TD>
	<TD align=left><sup><font size=1 face="serif">3</font></sup>

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">10/14</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">@ 100</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">12,059,775</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost $220,972,623)</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">229,487,001</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">20</FONT></P>

<HR noshade align="center" width="100%" size=2>
<PAGE>

<A name="page_44"></A>




<A name="page_45"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK) (continued)</FONT></B>&nbsp;
	</TD>
	<TD width=1% align=left>

	</TD>
	<TD width=8% align=left>

	</TD>
	<TD width=1% align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=8>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD width=10% align=left>

	</TD>
	<TD width=4% align=left>

	</TD>
	<TD colspan=2 align=left>
      <div align="center"><B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
      </div></TD>
	<TD width=64% align=left>&nbsp;</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD colspan=2 align=left>
      <div align="center"><B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
      </div></TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
	</TD>
	<TD align=left>

	</TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp;
      </div></TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>
      </div></TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD width="7%">
<HR noshade size=1>
	</TD>
	<TD width="5%">
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">SHORT-TERM INVESTMENTS&#151;7.9%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">New York&#151;3.3%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
      <div align="center"><FONT size=1 face="serif">A1</FONT><font size=1 face="serif">+</font> </div></TD>
	<TD align=right>
<FONT size=1 face="serif">$</FONT>
	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,000</FONT><SUP></SUP>
	</TD>
	<TD align=left><sup><font size=1 face="serif">6</font></sup>

	</TD>
	<TD align=left>
<FONT size=1 face="serif">New York City Transl. Fin. Auth., Ser. A-1, 1.32%, 9/01/04, FRWD</FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">$</FONT>
	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,000,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">Ohio&#151;3.3%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="serif">VMIG1</FONT>
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,000</FONT><SUP></SUP>
	</TD>
	<TD align=left><sup><font size=1 face="serif">6</font></sup>

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Hamilton Cnty. Hosp. Facs., Ser. A, 1.32%, 9/01/04, FRWD</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">5,000,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR>
	<TD>&nbsp;

	</TD>
    <TD>&nbsp;</TD>
    <TD><hr noshade size=1></TD>
    <TD><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD colspan=2 align=left><div align="center"><B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
    </div></TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp;
      </div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;1.3%</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,950</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">1,950,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=1 face="serif">Total Short-Term Investments (cost $11,950,000)</FONT></B>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">11,950,000</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;159.0% (cost $232,922,623)</FONT></B>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">$</FONT>
	</TD>
	<TD align=right>
<FONT size=1 face="serif">241,437,001</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;0.6%</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">970,515</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(59.6)%</FONT>&nbsp;
	</TD>
	<TD align=left>

	</TD>
	<TD align=right>
<FONT size=1 face="serif">(90,515,884</FONT>
	</TD>
	<TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
      <HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>

	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
	</TD>
	<TD align=right>
<FONT size=1 face="serif">$</FONT>
	</TD>
	<TD align=right>
<FONT size=1 face="serif">151,891,632</FONT>
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
</TABLE>
<BR>
<P>___________<br>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2004, the Trust held 7.9% of its net assets, with a current market value of $12,059,775, in securities restricted as to resale.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts. </FONT></P>
<P><SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Security
  is deemed to be of investment grade quality by the investment advisor.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or
the next date on which the rate of interest is adjusted. Rate shown as of August 31, 2004.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=center colspan=4><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=4>
<B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=8% align=left>
<FONT size=2 face="serif">ACA</FONT>&nbsp;
	</TD>
	<TD width=45% align=left>
<FONT size=2 face="serif">&#151; American Capital Access</FONT>&nbsp;
	</TD>
	<TD width=6% align=left>
<FONT size=2 face="serif">FSA</FONT>&nbsp;
	</TD>
	<TD width=36% align=left>
<FONT size=2 face="serif">&#151; Financial Security Assurance</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">AMBAC</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">&#151; American Municipal Bond Assurance Corporation</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">GO</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">&#151; General Obligation</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">FGIC</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">&#151; Financial Guaranty Insurance Company</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">PCR</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">&#151; Pollution Control Revenue</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="serif">FRWD</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">&#151; Floating Rate Weekly Demand</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">MBIA</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="serif">&#151; Municipal Bond Insurance Association</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD colspan="4" align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">21</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS</FONT></B>&nbsp;
        </TD>
        <TD width=11% align=left>

        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=6% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">AUGUST</FONT></B>&nbsp;
<B><FONT face="serif">31, 2004</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE)</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=8>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=8% align=left>&nbsp;

        </TD>
        <TD width=2% align=left>&nbsp;
        </TD>
        <TD width=7% align=left><div align="center"><b><font size=2 face="serif">Principal</font></b></div></TD>
        <TD width=3% align=left>&nbsp;</TD>
        <TD width=62% align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left><div align="center"><b><font size=2 face="serif">Amount</font></b>&nbsp; </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=center>
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;157.0%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">California&#151;16.7%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Agua Caliente Band, Cahuilla Indians, 6.00%, 7/01/18</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/13</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD align=center>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
    </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,247,952</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Mobilehome Park Fin. Auth., Palomar Estates East &amp; West, Ser. A,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>

<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 3/15/34, ACA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">03/13</FONT>
          <FONT size=1 face="serif">@ 102</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,443,895</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Statewide Cmnty. Dev. Auth., Mem. Hlth. Svcs., Ser. A, 5.50%, 10/01/33</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,148,600</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Golden St. Tobacco Sec. Corp., Ser. B,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">16,850</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">17,238,561</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,800</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.625%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,092,072</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Caa2</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">11,410</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%, 12/01/24</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">12/12</FONT>
          <FONT size=1 face="serif">@ 102</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,797,425</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,620</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Francisco City &amp; Cnty. Redev. Agcy., Cmnty. Facs. Dist., Mission Bay South,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.625%, 8/01/27</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/11</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,820,092</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Marcos Spl. Tax, Cmnty. Facs. Dist. No. 02-01,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">990</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.90%, 9/01/28</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/10</FONT>
          <FONT size=1 face="serif">@ 102</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000,672</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,855</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.95%, 9/01/35</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/10</FONT>
          <FONT size=1 face="serif">@ 102</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,874,960</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">54,664,229</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Colorado&#151;4.4%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Colorado Hlth. Facs. Auth., Catholic Hlth. Initiatives, Ser. A, 5.50%, 3/01/32</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">03/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,347,400</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Northwest Pkwy. Pub. Hwy. Auth., Ser. A, 5.25%, 6/15/41, FSA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/11</FONT>
          <FONT size=1 face="serif">@ 102</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,110,920</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">14,458,320</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Connecticut&#151;1.2%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Connecticut Dev. Auth., Connecticut Lt. &amp; Pwr., PCR, Ser. B, 5.95%, 9/01/28</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/08</FONT>
          <FONT size=1 face="serif">@ 102</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,607,300</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,440</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Mohegan Tribe Indians, Pub. Impvt. Priority Dist., 5.25%, 1/01/33</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,443,355</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,050,655</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">District of Columbia&#151;5.7%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,265</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Friendship Pub. Charter Sch. Inc., 5.25%, 6/01/33, ACA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,244,849</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp., 6.50%, 5/15/33</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,731,475</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">11,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp., 6.75%, 5/15/40</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/11</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,616,570</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">18,592,894</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Florida&#151;19.2%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Capital Trust Agcy., Air Cargo Fort Lauderdale Proj., 5.75%, 1/01/32</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/14</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,297,365</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Fishhawk Cmnty. Dev. Dist. II, Spec. Assmnt. Rev,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 6.25%, 5/01/34</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/13</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,097,560</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,820</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.00%, 11/01/07</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,862,893</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,780</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lakes by the Bay So. Cmnty. Dev. Dist., Ser. A, 6.25%, 5/01/34</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/14</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,861,834</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,650</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Leesburg Hosp., Leesburg Regl. Med. Ctr. Proj., 5.50%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,685,166</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Live Oak Comm. Dev., Dist. No. 1 Spec. Assmnt. Rev., Ser. A, 6.30%, 5/01/34</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/13</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,299,200</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,230</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Miami Beach Hlth. Facs. Auth., Mt. Sinai Med. Ctr., 6.75%, 11/15/21</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,465,058</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,850</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Orange Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys., 5.625%, 11/15/32</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,102,011</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">

        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">14,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pinellas Cnty. Hlth. Fac. Auth., Baycare Hlth. Sys., 5.50%, 11/15/33</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">14,410,620</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,085</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Stevens Plantation Cmnty. Dev. Dist., Spl. Assmt. Rev., Ser. A, 7.10%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,118,860</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,625</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sumter Cnty. Ind. Dev. Auth., No. Sumter Util. Co. LLC, 6.90%, 10/01/34</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/09</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,684,061</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,715</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sumter Landing Cmnty. Dev., Spec. Assmnt. Rev, 6.875%, 5/01/23</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/13</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,866,312</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">62,750,940</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Georgia&#151;1.6%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Milledgeville-Baldwin Cnty. Dev. Auth., Georgia Coll. &amp; St. Univ. Fndtn., 5.625%, 9/01/30</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/14@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,080,450</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Illinois&#151;15.5%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Bolingbrook, GO, Ser. A, 5.375%, 1/01/38, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT> </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,140,400</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,470</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Centerpoint Intermodal Ctr., Ser. A, 8.00%, 6/15/23</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT> </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,456,217</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,500</FONT>
        </TD>
        <TD align=left><sup><font size=1 face="serif">3</font></sup>

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Illinois Dev. Fin. Auth., Hosp. Rev., Adventist Hlth. Sys. Sunbelt Oblig., 5.65%, 11/15/24</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/09</FONT>
          <FONT size=1 face="serif">@ 101</FONT> </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,730,550</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,880</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Illinois Fin. Auth. Rev., Northwestern Mem. Hosp., Ser. A, 5.50%, 8/15/43</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT> </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,926,850</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Illinois Hlth. Facs. Auth., Elmhurst Mem. Hlth. Care, 5.50%, 1/01/22</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT> </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,264,640</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">15,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Illinois Sports Facs. Auth., Dedicated St. Tax Supported Rev., Zero Coupon, 6/15/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/15</FONT>
          <FONT size=1 face="serif">@ 101</FONT> </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">11,476,050</FONT>&nbsp;
      </div></TD>
</TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">22</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_48"></A>




<A name="page_49"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE) (continued)</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=8>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan=2 align=left>
      <div align="center"><B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan=2 align=left><div align="center"><B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>
      <div align="center"><B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
      </div></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp;
      </div></TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Illinois&#151;(continued)</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Pier &amp; Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj.,</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, MBIA,</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">45,190</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 6/15/33</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">9,692,803</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 6/15/40</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">703,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,290</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">O&#146;Hare Intl. Arpt., Refdg. Gen. Arpt. 3rd Lien, Ser. C-2, 5.25%, 1/01/30, FSA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/14</FONT>
          <FONT size=1 face="serif"> @ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,369,923</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">50,761,183</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Indiana&#151;9.6%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Fort Wayne, PCR, Gen. Mtrs. Corp. Proj., 6.20%, 10/15/25</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">12/12</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,789,025</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Indiana Hlth. Fac. Fin. Auth., Ascension Hlth., Ser. F, 5.375%, 11/15/25</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,074,950</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">19,735</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Indianapolis Local Pub. Impvt. Bond Bank, Wtr. Wks. Proj., Ser. A, 5.25%, 7/01/33, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">20,373,822</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">31,237,797</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Louisiana&#151;0.8%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,485</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Louisiana Local Gov&#146;t. Env. Facs. &amp; Cmnty. Dev. Auth., Oakleigh Apts. Proj., Ser. A,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.375%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13</FONT>
          <FONT size=1 face="serif">@ 102</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,503,911</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Maryland&#151;3.5%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Frederick Cnty. Spl. Oblig., Urbana Cmnty. Dev. Auth., Ser. A, 5.95%, 7/01/30</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/07</FONT>
          <FONT size=1 face="serif">@ 102</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,002,160</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Maryland Econ. Dev. Corp., Student Hsg. Rev., Univ. of Maryland, Ser. A, 5.75%, 10/01/33</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,066,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Maryland Hlth. &amp; Higher Edl. Facs. Auth.,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,240</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Medstar Hlth., 5.50%, 8/15/33</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,255,904</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Union Hosp. of Cecil Cnty., 5.625%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,027,660</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">11,352,474</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Mississippi&#151;1.8%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,950</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lowndes Cnty. Sld. Wst. Disp., PCR, Weyerhaeuser Co. Proj., Ser. A, 6.80%, 4/01/22</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,767,196</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Missouri&#151;1.9%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dept. of Transp., Rt. 370/Missouri Bottom Rd./Taussig Rd. Transp. Dev., 7.20%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,206,880</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Nevada&#151;5.8%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Clark Cnty. Arpt., Ser. A-2, 5.00%, 7/01/36, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,064,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,990</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Henderson Local Impvt. Dist. No. T-14, 5.80%, 3/01/23</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">03/05</FONT>
          <FONT size=1 face="serif">@ 103</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,071,776</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">No. Las Vegas Local Impvt., Spec. Impvt. Dist. 60 Aliante,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.125%, 12/01/17</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">12/04</FONT>
          <FONT size=1 face="serif">@ 103</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,575,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.40%, 12/01/22</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">12/04</FONT>
          <FONT size=1 face="serif">@ 103</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,088,890</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">18,800,666</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New Jersey&#151;11.6%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New Jersey Econ. Dev. Auth.,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Continental Airlines Inc. Proj., 7.20%, 11/15/30</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/10</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,043,842</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,475</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kapkowski Road Landfill Proj., 6.50%, 4/01/28</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,501,542</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kapkowski Road Landfill Proj., 6.50%, 4/01/31</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">11,236,300</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">11,700</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp., 6.25%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,078,965</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">37,860,649</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New Mexico&#151;1.4%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New Mexico Hsg. Auth., Region III, Villa Delaware Oso Apts. Proj., Ser. A, 6.00%, 1/01/38</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/13</FONT>
          <FONT size=1 face="serif">@ 102</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,716,556</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New York&#151;4.8%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,845</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Env. Facs. Corp., St. Clean Wtr. &amp; Drinking Wtr. Rev., NYC Mun. Wtr. Proj. B, 5.00%, 6/15/31</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,894,475</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,775</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Transp. Auth., Svc. Contract, Ser. A, 5.00%, 7/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,831,134</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,800</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Port Auth. of NY &amp; NJ, Spec. Oblig. Rev., Contl/Eastern Proj. LaGuardia, 9.00%, 12/01/10</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/04</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,841,096</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">15,566,705</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Pennsylvania&#151;3.2%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Monroe Cnty. Hosp. Auth., Hospital Pocono Med Center, 6.00%, 1/01/43</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,107,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,175</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Ser. A, 6.375%, 11/01/41</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/11</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,362,956</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,470,856</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">South Carolina&#151;7.0%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Greenwood Cnty. Hosp., Self Mem. Hosp. Facs.,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,280</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 10/01/26</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/11</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,360,721</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 10/01/31</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/11</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,322,215</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,995</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lancaster Cnty. Assmnt., Edgewater Impvt. Dist. Ser. A, 6.875%, 11/01/35</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/13</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,115,689</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">23</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_50"></A>




<A name="page_51"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE) (continued)</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=8>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD colspan=2 align=left>
      <div align="center"><B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD colspan=2 align=left><div align="center"><B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp;
      </div></TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">South Carolina&#151;(continued)</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev.,</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AA</FONT>
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,750</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Georgetown Mem. Hosp., 5.375%, 2/01/30, RAA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/11</FONT><FONT size=1 face="serif">@100 </FONT>
      </div></TD>
        <TD><font size=1 face="serif">$</font>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,855,150</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">BBB</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,640</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Palmetto Hlth. Alliance, Ser. A, 6.25%, 8/01/31</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,761,308</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">BBB</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Palmetto Hlth. Alliance, Ser. C, 6.875%, 8/01/27</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,480,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>

        <TD align=right>
<FONT size=1 face="serif">22,895,083</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Tennessee&#151;2.6%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">20,405</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Knox Cnty. Hlth. Edl. &amp; Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A, Zero Coupon, 1/01/21, FSA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/13</FONT>
          <FONT size=1 face="serif">@ 63.44</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,457,668</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Texas&#151;19.5%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">BBB</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,300</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Brazos River Auth., PCR, TXU Elec. Co. Proj., Ser. C, 6.75%, 10/01/38</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,429,398</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A-</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,750</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Crawford Ed. Facs. Corp., Higher Ed. Rev., Univ. of St. Thomas Proj., 5.375%, 10/01/27</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,728,353</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,015</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dallas Area Rapid Trans., 5.00%, 12/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">12/11</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,033,054</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">BBB</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">20,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Gulf Coast Wst. Disp. Auth., Environ. Impvt. Rev., Ser. A, 6.10%, 8/01/24</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">20,891,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">25,375</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Harris Cnty. Houston Texas Sports Auth., Ser. A-3, Zero Coupon, 11/15/36, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/24</FONT>
          <FONT size=1 face="serif">@ 49.423</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,998,085</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sabine River Auth., PCR, TXU Elec. Co. Proj., Ser. B,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,900</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 11/01/11</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,365,805</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.15%, 8/01/22</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/13</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,094,760</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Texas Tpke. Auth., Central Sys. Rev., AMBAC,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">73,370</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/15/36</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
          <FONT size=1 face="serif">@ 24.171</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">11,114,821</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">65,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/15/37</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
          <FONT size=1 face="serif">@ 22.708</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,248,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">27,600</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/15/38</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
          <FONT size=1 face="serif">@ 21.384</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,695,916</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">63,600,192</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Utah&#151;1.2%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">BBB</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tooele Cnty. Hazardous Wst. Treat., Union Pacific Proj., Ser. A, 5.70%, 11/01/26</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/08</FONT>
          <FONT size=1 face="serif">@ 102</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,034,160</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Virginia&#151;7.1%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">13,375</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Alexandria Redev. &amp; Hsg. Auth., 3001 Park Cntr. Apts., Ser. A, 6.375%, 4/01/34</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/08</FONT>
        <FONT size=1 face="serif">@ 103</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">13,739,067</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Halifax Cnty. Indl. Dev. Auth., Exempt Fac. Rev., Old Dominion Elec. Coop. Proj.,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.625%, 6/01/28, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,495,900</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">23,234,967</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">West Virginia&#151;1.9%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">BBB+</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Mason Cnty., PCR, Refunding Appalachian Pwr. Co. Proj., Ser. L, 5.50%, 10/01/22</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/11</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,057,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,115</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">West Virginia Econ. Dev. Auth., Correctional Juvenile Safety, Ser. A, 5.00%, 6/01/29, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,130,722</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,188,522</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Wisconsin&#151;4.1%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Wisconsin Hlth. &amp; Edl. Facs. Auth.,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A-</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,930</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Aurora Hlth. Care, 6.40%, 4/15/33</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,167,726</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A-</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Synergy Hlth. Inc., 6.00%, 11/15/32</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,134,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wheaton Franciscan Svcs., 5.75%, 8/15/25</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">02/12</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,221,450</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">13,523,776</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;0.9%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Puerto Rico Hwy. &amp; Transp. Auth., Ser. G, 5.00%, 7/01/42</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,013,050</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;4.0%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A3</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.75%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,052,020</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A3</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 6.00%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,725,155</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">Baa1</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.00%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,256,850</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">Baa1</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.30%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,189,240</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">13,223,265</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost $497,686,989)</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">513,013,044</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=8>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">SHORT-TERM INVESTMENTS&#151;2.9%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">California&#151;0.0%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A1</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">75</FONT>
        </TD>
        <TD align=left><sup><font size=1 face="serif">5</font></sup>

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Hlth. Facs. Fin. Auth., Scripps Hlth., Ser. B, 1.28%, 9/01/04, MBIA, FRWD</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">75,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New York&#151;0.4%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A1</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">200</FONT></TD>
        <TD align=left><sup><font size=1 face="serif">5</font></sup>

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Mun. Wtr. Fin. Auth., Wtr. &amp; Swr. Sys. Rev., Ser. C, 1.26%, 9/01/04, FRDD</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">200,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A1</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left><sup><font size=1 face="serif">5</font></sup>

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Transl. Fin. Auth., Ser. A-1, 1.32%, 9/01/04, FRWD</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,200,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">24</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_52"></A>




<A name="page_53"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE) (continued)</FONT></B>&nbsp;
        </TD>
        <TD width=3% align=left>

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width="6%" align=right>&nbsp;</TD>
        <TD width="7%" align=right>
      <div align="center"><B><FONT size=2 face="serif">Shares</FONT></B>
      </div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=72% align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><div align="center"><B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD colspan="2">
    <HR noshade size=1>    </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD><hr noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;2.5%</FONT></B>&nbsp;
</TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">8,200</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">8,200,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Short-Term Investments (cost $9,475,000)</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">9,475,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;159.9% (cost $507,161,989)</FONT></B>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">522,488,044</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;3.0%</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">9,860,813</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(62.9)%</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">(205,579,051</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><HR align="left" size=1 noshade></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">326,769,806</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P><SUP><FONT size=1
face="serif">3</FONT></SUP><FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Security is deemed to be of investment grade quality by the investment advisor.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or
the next date on which the rate of interest is adjusted. Rate shown as of August 31, 2004.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=center colspan=4><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=4>
<B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">ACA</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Capital Access</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Security Assurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Municipal Bond Assurance Corporation</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">GO</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; General Obligation</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Guaranty Insurance Company</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Municipal Bond Insurance Association</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FRDD</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Floating Rate Daily Demand</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">PCR</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Pollution Control Revenue</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FRWD</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Floating Rate Weekly Demand</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">RAA</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Radian Asset Assurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="4" align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">25</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_54"></A>




<A name="page_55"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS</FONT></B>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=10% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=8% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=10><b><font size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK)</font></b>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width="8%" align=center>&nbsp;</TD>
  <TD width="1%" align=left></TD>
  <TD width="7%" align=right>&nbsp;
    <div align="center"><b><font size=2 face="serif">Principal</font></b>&nbsp; </div></TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="59%" align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Amount</font></b>&nbsp;</div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Option Call</font></b> </div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">(000</FONT></B><b><font size=2 face="serif">)</font></b>     </div></TD>
        <TD align=left>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;161.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Benicia Unified Sch. Dist., Ser. B, Zero Coupon, 8/01/23, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,476,695</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Cnty., Tobacco Sec. Agcy. Rev.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,405</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sonoma Cnty., 5.875%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">6,136,375</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,650</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Alameda Cnty., 6.00%, 6/01/42</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">6,393,258</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.25%, 5/01/20</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">6,958,380</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,385</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Edl. Facs. Auth., Scripps Coll., 5.00%, 8/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/11</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,418,104</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,500</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=1 face="serif">3</font></sup>

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Infrastructure &amp; Econ. Dev., Rand Corp., Ser. A, 5.25%, 4/01/42, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">4,641,750</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Pub. Wks. Brd., Dept. of Gen. Svcs., Ser. A, 5.00%, 12/01/27, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">12/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,077,850</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Ceres Unified Sch. Dist., Ser. B, FGIC,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,055</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">705,919</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,180</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">691,586</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,300</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">676,137</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,440</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">665,021</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,575</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">652,080</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,275</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">563,595</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,600</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Kaweah Delta Hlth. Care Dist., 6.00%, 8/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,754,050</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Long Beach Unified Sch. Dist., Ser. D, 5.00%, 8/01/31, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/10</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,033,660</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Dept. of Wtr. &amp; Pwr., Wtr. Wks. Rev., Ser. A, FGIC,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 7/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,032,050</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.125%, 7/01/41</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/11</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,087,050</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Unified Sch. Dist., Ser. E, 5.125%, 1/01/27, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,197,700</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Wstwtr. Sys., Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 6/01/27, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,125,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,025</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 6/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">6,133,209</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">No. California Pwr. Agcy., Pub. Pwr. Rev., Hydroelec. Proj. 1, Ser. A, 5.00%, 7/01/28, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/08</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,094,650</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">No. Orange Cnty. Cmnty. Coll. Dist., Ser. A, 5.00%, 2/01/27, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,563,675</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Riverside Unified Sch. Dist., Ser. A, 5.00%, 2/01/27, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">02/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,121,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,295</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Diego Cnty. Wtr. Auth., COP, Ser. A, 5.00%, 5/01/32, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,381,150</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,805</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Diego Redev. Agcy., Centre City Proj., Ser. A, 5.00%, 9/01/28, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/11</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">4,886,060</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Diego Univ. Fndtn Aux. Org., Ser. A, 5.00%, 3/01/37, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">03/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">4,057,440</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">20,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Joaquin Hills Transp. Corridor Agcy., Toll Road Rev., Ser. A, Zero Coupon, 1/15/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">4,709,600</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Jose Fin. Auth., Civic Ctr. Proj., Ser. B, 5.00%, 6/01/37, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">6,068,940</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">11,125</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Santa Rosa Wstwtr., Ser. B, Zero Coupon, 9/01/27, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">3,246,052</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tustin Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. 97-1, Ser. A, 5.00%, 9/01/38, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">3,045,660</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,280</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Westlands Wtr. Dist., COP, 5.00%, 9/01/34, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/12</FONT>
      </div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,369,074</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;161.1% (cost $119,223,258)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">118,963,170</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.9%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,362,390</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(63.0)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">(46,502,293</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">73,823,267</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P><P>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P><SUP><FONT size=1
face="serif">3</FONT></SUP><FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts.</FONT></P>
<P>
<FONT size=1 face="serif">The value (market value plus accrued interest) of securities that are covered by insurance, which insures the payment of principal and interest, represents approximately 81.3% of the Trust&#146;s managed assets.</FONT></P><BR>

<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr valign="bottom">
    <td align=center colspan=7><HR noshade size=1></td>
  </tr>
  <tr valign="bottom">
    <td align=center colspan=7><b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b> </td>
  </tr>
  <tr valign="bottom">
    <td align=left><font size=2 face="serif">AMBAC</font>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=left><font size=2 face="serif">&#151; American Municipal Bond Assurance Corporation</font>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=left><font size=2 face="serif">FSA</font>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=left><font size=2 face="serif">&#151; Financial Security Assurance</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left><font size=2 face="serif">COP</font>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=left><font size=2 face="serif">&#151; Certificate of Participation</font>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=left><font size=2 face="serif">MBIA</font>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=left><font size=2 face="serif">&#151; Municipal Bond Insurance Association</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left><font size=2 face="serif">FGIC</font>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=left><font size=2 face="serif">&#151; Financial Guaranty Insurance Company</font>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td colspan="7" align=left><HR noshade size=1></td>
  </tr>
</table>
<P>&nbsp;</P>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">26</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_56"></A>




<A name="page_57"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=5% align=left>

        </TD>
        <TD width=6% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=9% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width="7%" align=left></TD>
  <TD width="1%" align=left></TD>
  <TD colspan=3 align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2 align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD colspan=3 align=left>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=right>
<B></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;<b><font size=2 face="serif">Principal</font></b>&nbsp; </TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2 align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><b><font size=2 face="serif">Amount</font></b>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2 align=right><div align="center"><b><font size=2 face="serif">Option Call</font></b></div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
        </TD>
        <TD align=left>

        </TD>
        <TD width=6% align=right>
      <div align="center"><B><FONT size=2 face="serif">(000</FONT></B>
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=61% align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=right>
      <div align="center"><B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD height="22">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;154.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">California&#151;146.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Anaheim Pub. Fin. Auth., Pub. Impvt. Proj., Ser. C, Zero Coupon, 9/01/32, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
        </TD>
        <TD align=left><font size=1 face="serif">$</font>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,059,100</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A2</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Edl. Facs. Auth., Univ. of San Diego, Ser. A, 5.25%, 10/01/30</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10/12</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,106,120</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,270</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Hlth. Facs. Fin. Auth., Insured Hlth. Facs. Valleycare, Ser. A, 5.375%, 5/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">05/12</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,368,133</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">11,550</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Hsg. Fin. Agcy., Home Mtg., Ser. K, Zero Coupon, 2/01/33, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">02/12</FONT></div></TD>
        <TD align=left><font size=1 face="serif">@ 27.46</font> </TD>
        <TD align=left>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,101,869</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Infrastructure &amp; Econ. Dev.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 6/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">06/07</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 101</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,092,430</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,750</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">J. David Gladstone Inst. Proj., 5.25%, 10/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10/11</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 101</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,782,025</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Rand Corp., Ser. A, 5.25%, 4/01/42, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">04/12</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,610,250</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Statewide Cmnty. Dev. Auth.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kaiser Permanente, Ser. A, 5.50%, 11/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">11/12</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,152,450</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AA-</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,250</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sutter Hlth. Oblig. Grp., Ser. B, 5.625%, 8/15/42</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">08/12</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,347,630</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">BBB</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Statewide Fin. Auth., Tobacco Settlement Rev., Ser. B, 6.00%, 5/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">05/12</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,335,560</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">BBB</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,845</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., 5.75%, 1/15/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">01/10</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 101</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,861,918</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Golden St. Tobacco Sec. Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">BBB</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.625%, 6/01/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">06/13</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,833,580</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">BBB</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.75%, 6/01/39</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">06/13</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">933,060</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A-</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.50%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">06/13</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,557,650</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A-</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,300</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.625%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">06/13</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,343,147</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A3</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,745</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Kaweah Delta Hlth. Care Dist., 6.00%, 8/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">08/12</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 102</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,848,391</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lathrop Fin. Auth., Wtr. Sply. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">655</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.90%, 6/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">06/13</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">657,705</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,180</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.00%, 6/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">06/13</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,195,482</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">B-</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 7.50%, 12/01/24</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">12/12</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 102</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">850,240</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">Caa2</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">680</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 7.50%, 12/01/24</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">12/12</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 102</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">583,896</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Multi-Fam. Hsg.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,240</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">San Lucas Apts., Ser. 5, 5.95%, 11/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">06/12</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,165,834</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,425</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Westgate Courtyard Apts., Ser. 3, 5.80%, 11/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">12/11</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,344,029</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,400</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Orange Cnty. Cmnty. Facs. Dist., Spl. Tax Rev., Ladera Ranch, Ser. A, 6.00%, 8/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">08/10</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 101</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,471,232</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">BBB</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Palm Springs Mobile Home Park, Sahara Mobile Home Park, 5.75%, 5/15/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">05/12</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 102</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,056,280</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">NR</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Francisco City &amp; Cnty. Redev. Agcy., Cmnty. Facs. Dist., Mission Bay South, 6.25%, 8/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">08/11</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 101</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,554,525</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">15,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Santa Ana Unified Sch. Dist., COP, Zero Coupon, 4/01/29, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,962,850</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">AAA</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Santa Clara Valley Wtr. Dist., Wtr. Util. Sys. Rev., Ser. A, 5.125%, 6/01/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">06/10</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,561,025</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">BBB</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,250</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tobacco Sec. Auth. So. California, Tobacco Settlement Rev., Ser. A, 5.625%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">06/12</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,587,422</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A+</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Torrance Hosp. Rev., Torrance Mem. Med Ctr., Ser. A, 5.50%, 6/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">06/11</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 101</FONT>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,530,600</FONT>&nbsp;
          </div></TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">71,854,433</FONT>&nbsp;
          </div></TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;8.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">Baa1</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,500</FONT><SUP></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">5</font></sup>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10/14</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">@ 100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,019,925</FONT>&nbsp;
          </div></TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost $72,932,184)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">75,874,358</FONT>&nbsp;
          </div></TD>
</TR>
<TR>
        <TD>
          <div align="center"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">SHORT-TERM INVESTMENTS&#151;4.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">California&#151;4.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">A1</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT><SUP></SUP>
        </TD>
        <TD><sup><font size=1 face="serif">6</font></sup>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Dept. of Wtr. Resources, Power Supply Rev., Ser. B-2, 1.40%, 9/01/04, FRDD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=1 face="serif">N/A</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000,000</FONT>&nbsp;
          </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">27</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_58"></A>




<A name="page_59"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA) (continued)</FONT></B>&nbsp;
        </TD>
        <TD width=1% align=left>

        </TD>
        <TD width=5% align=left>

        </TD>
        <TD width=1% align=left></TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR>
  <TD width="7%">&nbsp;</TD>
  <TD width="7%"><div align="center"><b><font size=2 face="serif">Shares</font></b> </div></TD>
  <TD width="1%"><div align="center"></div></TD>
  <TD width="78%"><div align="center"></div></TD>
  <TD><div align="center"></div></TD>
  <TD><div align="center"></div></TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD><div align="center"><b><font size=2 face="serif">(000)</font></b> </div></TD>
  <TD><div align="center"></div></TD>
  <TD><div align="center"><b><font size=2
face="serif">Description</font></b></div></TD>
  <TD><div align="center"></div></TD>
  <TD><div align="center"><b><font size=2 face="serif">Value</font></b></div></TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD colspan="2">
    <HR noshade size=1>    </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;0.2%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left></TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Short-Term Investments (cost $2,100,000)</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,100,000</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;158.7% (cost $75,032,184)</FONT></B>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">77,974,358</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;2.3%</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,147,144</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(61.0)%</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">(29,976,396</FONT>
        </TD>
        <TD align=left nowrap><FONT size=1 face="serif">)</FONT>&nbsp; </TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">49,145,106</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. </FONT></P>
<P><SUP><FONT size=1
face="serif">3</FONT></SUP><FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Security is deemed to be of investment grade quality by the investment advisor.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2004, the Trust held 8.2% of its net assets, with a current market value of $4,019,925, in securities restricted as to resale.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or
the next date on which the rate of interest is adjusted. Rate shown as of August 31, 2004.</FONT></P><BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=center colspan=7><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=7>
<B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Municipal Bond Assurance Corporation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">FRDD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Floating Rate Daily Demand</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">COP</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Certificate of Participation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Security Assurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Guaranty Insurance Company</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Municipal Bond Insurance Association</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="7" align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">28</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_60"></A>




<A name="page_61"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS</FONT></B>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="11%" align=left>

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="9%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="7%" align=left>&nbsp;

        </TD>
        <TD width="2%" align=left>

        </TD>
        <TD colspan=3 align=left>&nbsp;
</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>&nbsp;
</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD align=left></TD>
  <TD width="6%" align=right>&nbsp;
    <div align="center"><b><font size=2 face="serif">Principal</font></b>&nbsp;</div></TD>
  <TD width="2%" align=left><div align="center"></div></TD>
  <TD width="59%" align=left><div align="center"></div></TD>
  <TD><div align="center"></div></TD>
  <TD align=center><div align="center"></div></TD>
  <TD><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Amount</font></b>&nbsp; </div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD><div align="center"></div></TD>
  <TD align=center><div align="center"><b><font size=2 face="serif">Option Call</font></b> </div></TD>
  <TD><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
</TR>
<TR valign="bottom">
  <TD align=center><b><font size=2 face="serif">Rating</font></b><b><sup><font size=2 face="serif">1</font></sup></b></TD>
  <TD align=left></TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">(000</font></b><b><font size=2 face="serif">)</font></b> </div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=left><div align="center"><b><font size=2
face="serif">Description</font></b>&nbsp; </div></TD>
  <TD><div align="center"></div></TD>
  <TD align=center><div align="center"><b><font size=2 face="serif">Provisions</font></b><b><sup><font size=2 face="serif">2</font></sup></b> </div></TD>
  <TD><div align="center"></div></TD>
  <TD align=left><div align="center"><b><font size=2 face="serif">Value</font></b>&nbsp;</div></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;160.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">California&#151;156.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Anaheim Pub. Fin. Auth., Pub. Impvt. Proj., Ser. C, FSA,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;
</TD>
        <TD align=right>
<FONT size=1 face="serif">$</FONT><FONT size=1 face="serif">15,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 9/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call </FONT></TD>
        <TD><div align="right"><font size=1 face="serif">$</font>         </div></TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">2,843,100</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 9/01/36</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">1,685,200</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California, GO, 5.50%, 11/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/13 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">8,473,680</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Cnty. Tobacco Sec. Agcy.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,515</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.00%, 6/01/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">4,828,107</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Gold Country Fdg. Corp., 6.00%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12</FONT><FONT size=1 face="serif"> @ 100</FONT>     </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">3,778,290</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=1 face="serif">3</font></sup>

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.375%, 5/01/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12@ 101</FONT>       </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">6,409,680</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Infrastructure &amp; Econ. Dev., Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Bay Area Toll Brdgs., 5.00%, 7/01/36, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/13@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">5,082,700</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,735</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kaiser Hosp. Asst. LLC, 5.55%, 8/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/11@ 102</FONT>       </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">1,788,091</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Rand Corp., 5.25%, 4/01/42, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/12</FONT><FONT size=1 face="serif">@ 100</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">2,578,750</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Mobilehome Park Fin. Auth., Palomar Estates East &amp; West, Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 3/15/34, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">03/13 @ 102</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">3,443,895</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Statewide Cmnty. Dev. Auth.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kaiser Permanente, Ser. A, 5.50%, 11/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">5,152,450</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Mem. Hlth. Svcs., Ser. A, 5.50%, 10/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/13 @ 100</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">7,208,040</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sutter Hlth. Oblig Corp., Ser. B, 5.50%, 8/15/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">8,228,400</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">California Statewide Fin. Auth., Tobacco Settlement Rev.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 6.00%, 5/01/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/1 2@ 100</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">4,242,550</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,750</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.00%, 5/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">1,459,308</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Corona Norco Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. No. 98-1,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.10%, 9/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/12 @ 100</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">6,130,800</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">15,470</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=1 face="serif">4</font></sup>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 1/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">ETM</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">5,232,573</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,890</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=1 face="serif">4</font></sup>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 1/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">ETM</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">1,313,209</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Golden St. Tobacco Sec. Corp.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,900</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.625%, 6/01/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13 @ 100</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">2,658,691</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.75%, 6/01/39</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13 @ 100</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">1,026,366</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,650</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.50%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13 </FONT><FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">5,780,289</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.625%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13 @ 100</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">3,099,570</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">La Quinta Redev. Agcy. Tax Allocation, Redev. Proj. Area No. 1, 5.125%, 9/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/12 @ 102</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">5,153,600</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lathrop Fin. Auth., Wtr. Sply. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,490</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.90%, 6/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13 @ 100</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">1,496,154</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>


        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,680</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.00%, 6/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13 @ 100</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">2,715,161</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Dept. of Wtr. &amp; Pwr., Wtr. Wks. Rev., Ser. A, 5.125%, 7/01/41, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/11 @ 100</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">5,595,755</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Caa2</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,785</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=1 face="serif">Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%, 12/01/24 .</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">12/12 @ 102</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">1,532,726</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Oxnard Impvt. Bond, Dist. No. 1 Spec. Assmt., 1 Rice Ave.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,920</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.625%, 9/02/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">03/05</FONT>
            <FONT size=1 face="serif">@ 103</FONT> </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">1,919,501</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,915</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.70%, 9/02/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">03/05</FONT>
        <FONT size=1 face="serif">@ 103</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">1,912,338</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Poway Unified Sch. Dist., Spl. Tax Rev., Cmnty. Facs. Dist. No. 6,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 9/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/10</FONT>
        <FONT size=1 face="serif">@ 102</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">1,479,795</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,700</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.60%, 9/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/10</FONT>
    <FONT size=1 face="serif">@ 102</FONT>          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">1,685,550</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,470</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Rohnert Park Fin. Auth., Rancho Feliz Mobile Home Park, Ser. A, 5.625%, 9/15/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/13</FONT>
    <FONT size=1 face="serif">@ 100</FONT>          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">2,361,913</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sacramento City Fin. Auth., Cap. Impvt., Ser. A, 5.00%, 12/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/11</FONT>
    <FONT size=1 face="serif">@ 100</FONT>          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">5,079,250</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Bernardino Cnty., Spl. Tax Rev., Cmnty. Facs., 5.90%, 9/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/12</FONT>
    <FONT size=1 face="serif">@ 102</FONT>          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">5,966,940</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,665</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Diego Unified Sch. Dist., Ser. D, 5.25%, 7/01/23, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
    <FONT size=1 face="serif">@ 101</FONT>          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">9,275,882</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=1 face="serif">San Francisco City &amp; Cnty. Redev. Agcy., Cmnty. Facs. Dist., Mission Bay South, 6.25%, 8/01/33</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/11</FONT>
    <FONT size=1 face="serif">@ 101</FONT>          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">5,109,050</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">30,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=1 face="serif">San Joaquin Hills Transp. Corridor Agcy., Toll Road Rev., Ser. A, Zero Coupon, 1/15/34, MBIA .</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">5,973,300</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Jose Multi-Fam. Hsg., Helzer Courts Apts. Proj., Ser. A, 6.40%, 12/01/41</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">12/09</FONT> <FONT size=1 face="serif">@ 102</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">7,526,320</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Santa Clarita Facs. Dist., Valencia Town Ctr.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,640</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.80%, 11/15/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/10</FONT>
        <FONT size=1 face="serif">@ 102</FONT></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">1,656,990</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.85%, 11/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/10</FONT>
    <FONT size=1 face="serif">@ 102</FONT>          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="right"><FONT size=1 face="serif">1,522,275</FONT>&nbsp;
      </div></TD>
</TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">29</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_62"></A>




<A name="page_63"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL) (continued)</FONT></B>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD width="6%" align=left>

        </TD>
        <TD width="1%" align=left></TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width="8%" align=center>&nbsp;</TD>
  <TD width="1%" align=left></TD>
  <TD width="10%" align=right><div align="center"><b><font size=2 face="serif">Principal</font></b>&nbsp; </div></TD>
  <TD width="1%" align=left>&nbsp;</TD>
  <TD width="56%" align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Amount</font></b>&nbsp; </div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center><b><font size=2 face="serif">Option Call</font></b> </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">(000)</FONT></B>
      </div></TD>
        <TD align=left>
<B><FONT size=2 face="serif"></FONT></B>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>
      </div></TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">California&#151;(continued)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;
</TD>
        <TD align=right>
<FONT size=1 face="serif">$</FONT> <FONT size=1 face="serif">2,685</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Santa Rosa Wstwtr., Ser. B, Zero Coupon, 9/01/25, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">893,837</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">So. Tahoe Joint Pwr. Fin. Auth., So. Tahoe Redev. Proj. 1-A, 5.45%, 10/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13 @ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,204,950</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,600</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tobacco Sec. Auth. So. California, Tobacco Settlement Rev., Ser. A, 5.625%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12 @ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,273,808</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tustin Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. 97-1, Ser. B, 5.60%, 9/01/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/12 @ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,017,560</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Univ. of California, Ser. A, 5.00%, 5/15/33, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/13 @ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,032,660</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,170</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Val Verde Unified Sch. Dist. Fin. Auth., Spec. Tax Rev., 6.25%, 10/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13 @ 102</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,215,431</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Vernon Elec. Sys., Malburg Generating Station Proj., 5.50%, 4/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/08 @ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,041,480</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">172,085,965</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;3.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.75%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">526,010</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 6.00%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,064,330</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.00%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,577,055</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.30%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,063,080</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,230,475</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost $174,488,747)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">176,316,440</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1>
    <div align="center"> </div></TD>
  <TD align=left><hr noshade size=1></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Shares</font></b>&nbsp;</div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">(000</FONT></B><B><FONT size=2 face="serif">)</FONT></B>
      </div></TD>
        <TD align=left>
<B></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD></TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;3.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">3,400</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $3,400,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,400,000</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;163.5% (cost $177,888,747)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">179,716,440</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;2.0%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,198,185</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(65.5)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(71,962,401</FONT>
        </TD>
        <TD align=right><div align="left"> <FONT size=1 face="serif">)</FONT>&nbsp; </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">109,952,224</FONT>
        </TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>

        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
</TR>
</TABLE>

<P>___________</P><P>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P><SUP><FONT size=1
face="serif">3</FONT></SUP><FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">This security is collaterized by U.S. Treasury obligations.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Security is deemed to be of investment grade quality by the investment advisor.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=center colspan=7><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=7>
<B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Capital Access</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Security Assurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Municipal Bond Assurance Corporation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">GO</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; General Obligation</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">ETM</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Escrowed to Maturity</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Municipal Bond Insurance Association</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Guaranty Insurance Company</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="7" align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">30</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_64"></A>




<A name="page_65"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=6 align=left>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS</FONT></B>&nbsp;
        </TD>
        <TD width=12% align=left>

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=6 align=left>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=6 align=left>
<B><FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width="7%" align=left><div align="center"></div></TD>
  <TD width="2%" align=left><div align="center"></div></TD>
  <TD colspan="2" align=left>
    <div align="center"><b><font size=2 face="serif">Principal</font></b> </div></TD>
  <TD width="3%" align=left><div align="center"></div></TD>
  <TD width="59%" align=left><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
</TR>
<TR valign="bottom">
  <TD align=left><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD colspan="2" align=left><div align="center"><b><font size=2 face="serif">Amount</font></b>&nbsp; </div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=left><div align="center"><b><font size=2 face="serif">Option Call</font></b></div></TD>
  <TD><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
</TR>
<TR valign="bottom">
  <TD align=left><div align="center"><b><font size=2 face="serif">Rating</font></b><b><sup><font size=2 face="serif">1</font></sup></b></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD colspan="2" align=left><div align="center"><b><font size=2 face="serif">(000)</font></b></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=left><div align="center"><b><font size=2 face="serif">Description</font></b>&nbsp; </div></TD>
  <TD align=left><div align="center"><b><font size=2 face="serif">Provisions</font></b><b><sup><font size=2 face="serif">2</font></sup></b></div></TD>
  <TD><div align="center"></div></TD>
  <TD align=left><div align="center"><b><font size=2 face="serif">Value</font></b>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
  <TD align=left><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
  <TD colspan="2" align=left><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
  <TD><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;158.9%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Florida&#151;152.3%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Capital Trust Agcy. Multi-Fam., American Oppty.,</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD width="6%" align=right><font size=1 face="serif">$</font>
        </TD>
        <TD width="3%" align=right><font size=1 face="serif">1,000</font></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.875%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13</FONT><FONT size=1 face="serif"> @ 102</FONT>
      </div></TD>
        <TD><div align="left"><font size=1 face="serif">$</font> </div></TD>
        <TD align=right>
<FONT size=1 face="serif">951,440</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">995</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 7.25%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13</FONT><FONT size=1 face="serif"> @ 102</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">975,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">3,935</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Colonial Cntry. Club Cmnty. Dev. Dist., 6.40%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/13 @ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,100,506</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Florida Brd. of Ed.,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">9,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">GO, Ser. A, 5.00%, 6/01/27, FSA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12 @ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,166,950</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">8,640</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Lottery Rev., Ser. C, 5.00%, 1/01/22, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/13 @ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,130,234</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">7,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Florida Dept. of Transp., 5.00%, 7/01/27, FSA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/1 2@ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,130,970</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">8,695</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Gainesville Util. Sys., Ser. A, 5.00%, 10/01/33, FSA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,829,772</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">8,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Highlands Cnty. Hlth. Facs. Auth., Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/11 @ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,009,235</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">7,580</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hillsborough Cnty. Sch. Brd., COP, Ser. A, 5.00%, 7/01/25, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/1 0@ 100</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,727,355</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Jacksonville,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">8,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Excise Tax, Ser. B, 5.00%, 10/01/26, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/12 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,160,240</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">9,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sales Tax, 5.00%, 10/01/27, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,682,305</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">9,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Transp., 5.00%, 10/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/11 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,617,705</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">2,865</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Jacksonville Cap. Impvt., Ser. A, 5.00%, 10/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/12 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,906,972</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">1,480</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Julington Creek Plantation Cmnty. Dev., Assmt. Rev., 5.00%, 5/01/29, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12 @ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,504,080</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">9,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lake Cnty. Sch. Brd., COP, Ser. A, 5.00%, 7/01/28, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/13 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,161,910</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">26,935</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Miami Dade Cnty., Spec. Oblig. Rev., Ser. B, Zero Coupon, 10/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD align=left>
      <div align="center"><FONT size=1 face="serif">04/08 @ 28.079</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,971,489</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">7,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Orange Cnty., Sales Tax, Ser. B, 5.125%, 1/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/13 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,184,822</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Orange Cnty. Sch. Brd., COP, Ser. A, 5.00%, 8/01/27, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12 @ 100</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,030,060</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">9,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Orange Cnty. Tourist Dev., Tax Rev., 5.125%, 10/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/12 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,480,325</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">4,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Osceola Cnty. Sch. Brd., COP, Ser. A, 5.25%, 6/01/27, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12 @ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,197,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Palm Bay Util., FGIC,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">4,015</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 10/01/28</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,161,459</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">5,570</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 10/01/31</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,365,764</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">9,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Palm Beach Cnty. Sch. Brd., COP, Ser. D, 5.00%, 8/01/28, FSA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,332,296</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pinellas Cnty. Hlth. Fac. Auth., Baycare Hlth. Sys., 5.50%, 11/15/33</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/13 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,146,650</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">9,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pinellas Cnty. Swr., 5.00%, 10/01/32, FSA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,647,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Polk Cnty. Util. Sys., 5.00%, 10/01/29, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,084,850</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">825</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Port St. Lucie Util., 5.125%, 9/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/11 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">843,678</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">2,945</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sarasota Cnty. Util. Sys., Ser. C, 5.25%, 10/01/22, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/12 @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,188,964</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">3,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">St. Petersburg Pub. Util., Ser. A, 5.00%, 10/01/28, FSA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/09 @ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,544,905</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tampa Bay Wtr. Util. Sys., Ser. A, 5.00%, 10/01/28, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/11 @ 100</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,029,580</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tohopekaliga Wtr. Auth., Ser. B, FSA,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">1,980</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 10/01/21</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13</FONT><FONT size=1 face="serif"> @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,097,533</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 10/01/23</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13 @ 100</FONT>      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,043,220</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Village Cmnty. Dev. Dist., Assmt. Rev.,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">4,935</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 6.50%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/13 </FONT><FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,208,596</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">640</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.40%, 5/01/07</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">650,560</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
<FONT size=1 face="serif">12,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Village Ctr. Cmnty. Dev. Dist., Ser. A, 5.00%, 11/01/32, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/13 </FONT><FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">12,156,120</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">190,420,795</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">31</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_66"></A>




<A name="page_67"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=6 align=left>
<B><FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF) (continued)</FONT></B>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="16%" align=left>

        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD width="7%" align=left>

        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=11>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width="8%" align=left><div align="center"></div></TD>
  <TD width="3%" align=left><div align="center"></div></TD>
  <TD colspan="2" align=right><div align="center"><b><font size=2 face="serif">Principal</font></b>&nbsp;</div></TD>
  <TD width="2%" align=left><div align="center"></div></TD>
  <TD width="52%" align=left><div align="center"></div></TD>
  <TD><div align="center"></div></TD>
  <TD align=right><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=center><div align="center"></div></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD colspan="2" align=right><div align="center"><b><font size=2 face="serif">Amount</font></b>&nbsp; </div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD><div align="center"></div></TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Option Call</font></b></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=center><div align="center"></div></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="center"><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">(000)</FONT></B>
      </div></TD>
        <TD align=left>
      <div align="center"><B><FONT size=2 face="serif"></FONT></B>
      </div></TD>
        <TD align=left>

 <div align="center"><B><FONT size=2
face="serif">Description</FONT></B>
    </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>
      </div></TD>
        <TD align=left>

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;6.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <div align="center"><FONT size=1 face="serif">BBB</FONT>
    </div></TD>
        <TD align=right>&nbsp;
</TD>
        <TD width="4%" align=right><div align="left"><font size=1 face="serif">$</font>
    </div></TD>
        <TD width="5%" align=right><div align="left"><font size=1 face="serif">9,405</font> </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Children&#146;s Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12</FONT><FONT size=1 face="serif"> @ 100</FONT>
      </div></TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">8,268,406</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;158.9% (cost $196,369,893)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">198,689,201</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.9%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,366,988</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(60.8)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">(76,001,833</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">125,054,356</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
</TABLE>
<P>___________</P><P>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. </FONT></P>
<P><SUP><FONT size=1
face="serif">3</FONT></SUP><FONT size=1 face="serif">Security was deemed to be of investment grade quality by the investment advisor at the time of purchase.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts.</FONT></P>
<P>
<FONT size=1 face="serif">The value (market value plus accrued interest) of securities that are covered by insurance, which insures the payment of principal and interest, represents approximately 82.9% of the Trust&#146;s managed assets.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=center colspan=7><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=7>
<B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Municipal Bond Assurance Corporation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Security Assurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">COP</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Certificate of Participation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">GO</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; General Obligation</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Guaranty Insurance Company</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Municipal Bond Insurance Association</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="7" align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">32</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_68"></A>




<A name="page_69"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan=5 align=left><B><FONT face="serif">PORTFOLIO OF INVESTMENTS</FONT></B>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD colspan="2" align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=12% align=left>

        </TD>
        <TD colspan="2" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width="9%" align=center>&nbsp;</TD>
  <TD width="2%" align=left><div align="center"></div></TD>
  <TD width="9%" align=right>
    <div align="center"><b><font size=2 face="serif">Principal</font></b></div></TD>
  <TD width="2%" align=left><div align="center"></div></TD>
  <TD width="56%" align=center><div align="center"></div></TD>
  <TD><div align="center"></div></TD>
  <TD align=center><div align="center"></div></TD>
  <TD colspan="2" align=center><div align="center"></div></TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Amount</font></b>&nbsp;</div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=center><div align="center"></div></TD>
  <TD><div align="center"></div></TD>
  <TD align=center><div align="center"><b><font size=2 face="serif">Option Call</font></b> </div></TD>
  <TD colspan="2" align=center><div align="center"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">(000)</FONT></B>
      </div></TD>
        <TD align=left>
      <div align="center"><B><FONT size=2 face="serif"></FONT></B>&nbsp;
      </div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD colspan="2">
          <HR noshade size=1>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;156.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Florida&#151;142.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Bay Cnty., Sales Tax Rev., 5.125%, 9/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/12 @ 100</FONT>
      </div></TD>
        <TD width=3% align=center>
      <div align="left"><font size=1 face="serif">$</font> </div></TD>
    <TD width=6% align=center><div align="right"><font size=1 face="serif">1,286,013</font>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Boynton Beach Multi-Fam., Clipper Cove Apts., 5.30%, 1/01/23, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/13 @ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">1,016,860</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Capital Trust Agcy. Multi-Fam., American Oppty., Ser. A, 5.875%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13 @ 102</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">951,440</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,670</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Colonial Cntry. Club Cmnty. Dev. Dist., 6.40%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/13</FONT><FONT size=1 face="serif"> @ 101</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">1,740,240</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,150</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Florida Mun. Loan Council, Ser. A, 5.125%, 5/01/32, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12 @ 101</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">3,235,712</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,460</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Gateway Svcs. Cmnty. Dev. Dist., Spec. Assmt., Stoneybrook Proj., 5.50%, 7/01/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">1,494,368</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Greater Orlando Aviation Auth., Orlando Arpt. Facs., Ser. A, 5.125%, 10/01/32, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/12 @ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">3,164,883</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,900</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Highlands Cnty. Hlth. Facs. Auth., Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/11 @ 101</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">5,193,559</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,810</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hillsborough Cnty. Ind. Dev. Auth., PCR, Tampa Elec. Co. Proj., 5.50%, 10/01/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/12 @ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">1,819,376</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Jacksonville Econ. Dev. Comm. Hlth. Facs., Mayo Clinic, Ser. B, 5.50%, 11/15/36</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/11 @ 101</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">3,626,175</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">JEA, Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Elec. Sys. Rev., 5.50%, 10/01/41</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/07 @ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">5,419,650</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,425</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=1 face="serif">3</font></sup>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wtr. &amp; Swr. Sys., 5.375%, 10/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/07 @ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">5,527,207</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A1</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lakeland Hosp. Sys., Lakeland Regl. Hlth. Sys., 5.50%, 11/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12 @ 101</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">3,039,240</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Miami Beach Hlth. Facs. Auth., Mt. Sinai Med. Ctr., 6.75%, 11/15/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/14 @ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">1,556,595</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Miami Dade Cnty., Spec. Oblig. Rev., MBIA,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 10/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="center"><FONT size=1 face="serif">04/08</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">1,634,820</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 10/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="center"><FONT size=1 face="serif">04/08</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">2,347,400</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,410</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 10/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="center"><FONT size=1 face="serif">04/08</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">1,132,205</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Orange Cnty. Hlth. Facs. Auth., Orlando Regl. Hlth. Care, 5.75%, 12/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">12/12 @ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">5,182,550</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,350</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Orange Cnty. Tourist Dev., Tax Rev., 5.125%, 10/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/12 @ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">3,433,415</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,105</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Osceola Cnty. Tourist Dev., Tax Rev., Ser. A, 5.00%, 10/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/12 @ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">3,148,408</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,630</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Palm Bay Util., Zero Coupon, 10/01/28, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">1,050,086</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Palm Beach Cnty. Sch. Brd., COP, Ser. C, 5.00%, 8/01/27, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12 @ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">3,045,090</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Port St. Lucie Util., 5.125%, 9/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/11 @ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">1,533,960</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">So. Broward Hosp. Dist., 5.60%, 5/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12 @ 101</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">2,086,600</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,765</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Stevens Plantation Impvt. Proj., 6.375%, 5/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">1,802,824</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,850</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sumter Cnty. Indl. Dev. Auth., No. Sumter Util. Co. LLC, 6.80%, 10/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/09 @ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">2,892,665</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,875</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Village Cmnty. Dev. Dist., Assmt. Rev., Ser. A, 6.50%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/13 @ 101</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">1,978,950</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Volusia Cnty Edl. Fac. Auth., Embry Riddle Aeronautical, RAA,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.20%, 10/15/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13@ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">1,280,300</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,610</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.20%, 10/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13@ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">1,643,069</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2">
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">73,263,660</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2">
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;7.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Puerto Rico Pub. Bldgs. Auth., Gov&#146;t Facs., Ser. D,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,565</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=1 face="serif">4</font></sup>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">2,915,020</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">935</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 7/01/36</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12 </FONT><FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">959,721</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2">
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=center>
      <div align="right"><FONT size=1 face="serif">3,874,741</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2">
<HR align="right" size=1 noshade>
        </TD>
</TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">33</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_70"></A>




<A name="page_71"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT></B>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="12%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="8%" align=left>

        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="9%" align=left>&nbsp;

        </TD>
        <TD width="2%" align=left>

        </TD>
        <TD colspan=3 align=left>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD width="8%" align=right><div align="center"><b><font size=2 face="serif">Amount</font></b>&nbsp;</div></TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="54%" align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Option Call</font></b> </div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="center"><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">(000)</FONT></B>
      </div></TD>
        <TD align=left>
<B><FONT size=2 face="serif"></FONT></B>
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Value</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;6.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <div align="center"><FONT size=1 face="serif">Baa1</FONT>&nbsp;
    </div></TD>
        <TD align=right>&nbsp;
</TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">$</FONT><FONT size=1 face="serif">3,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/14</FONT><FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">3,445,650</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;156.8% (cost $76,421,167)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">80,584,051</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.1%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">578,900</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(57.9)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">(29,780,135</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">51,382,816</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P><P>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P><SUP><FONT size=1
face="serif">3</FONT></SUP><FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2004, the Trust held 6.7% of its net assets, with a current market value of $3,445,650, in securities restricted as to resale.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=center colspan=7><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=7>
<B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Capital Access</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Security Assurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Municipal Bond Assurance Corporation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Municipal Bond Insurance Association</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">COP</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Certificate of Participation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">PCR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Pollution Control Revenue</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Guaranty Insurance Company</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">RAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Radian Asset Assurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="7" align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">34</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_72"></A>




<A name="page_73"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS</FONT></B>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="13%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="8%" align=left>

        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width="8%" align=center>&nbsp;</TD>
  <TD width="1%" align=left></TD>
  <TD width="9%" align=right>
    <div align="center"><b><font size=2 face="serif">Principal</font></b>&nbsp; </div></TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="56%" align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Amount</font></b>&nbsp; </div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><div align="center"><b><font size=2 face="serif">Option Call</font></b>&nbsp; </div></TD>
  <TD>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">(000)</FONT></B>
      </div></TD>
        <TD align=left>
<B><FONT size=2 face="serif"></FONT></B>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="center"><B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Value</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;156.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Maryland&#151;122.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,870</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Anne Arundel Cnty. Econ. Dev., Cmnty. Coll. Proj., 5.25%, 9/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/12</FONT>
          <FONT size=1 face="serif"> @ 102</FONT>
      </div></TD>
        <TD><font size=1 face="serif">$</font>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,967,982</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Baltimore, Spec. Oblig. Rev., Harborview Lot No. 2, 6.50%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/13</FONT>
          <FONT size=1 face="serif"> @ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,039,390</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Baltimore Cnty., GO,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=1 face="serif">3</font></sup>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Met. 67th Dist., 5.00%, 6/01/22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/11</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,108,020</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Met. 68th Dist., 5.00%, 8/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,048,640</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Baltimore Wstwtr. Proj., Ser. A, FGIC,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.125%, 7/01/42</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif"> @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,044,600</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.20%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif"> @ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,648,505</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Frederick Cnty., Urbana Cmnty. Dev. Auth., 6.625%, 7/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/07</FONT>
          <FONT size=1 face="serif"> @ 102</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,044,840</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Maryland Econ. Dev. Corp., Student Hsg. Rev., Univ. of Maryland, Ser. A, 5.75%, 10/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,520,025</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Maryland Hlth. &amp; Higher Edl. Facs. Auth.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Brd. of Child Care, 5.375%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,072,980</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,990</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Carroll Cnty. Gen. Hosp., 6.00%, 7/01/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,082,137</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">750</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Goucher Coll., 5.375%, 7/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">785,482</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Johns Hopkins Univ., Ser. B, 5.00%, 7/01/41</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/11</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,026,240</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loyola Coll. Issue, 5.00%, 10/01/39</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/09</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,012,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Union Hosp. of Cecil Cnty., 5.625%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,055,320</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Univ. of Maryland Med. Sys., 5.25%, 7/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/11</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,022,520</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,905</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Maryland Ind. Dev. Fin. Auth., Econ. Dev. Rev., Nat&#146;l. Aquarium Baltimore Fac., Ser. B,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.20%, 11/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,946,986</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Maryland Transp. Auth., Arpt. Pkg. Rev., Baltimore/Wash Intl. Arpt., Ser. B,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.125%, 3/01/24, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">03/12</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,052,740</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Montgomery Cnty. Lease, Metrorail Garage Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 6/01/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">520,515</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,435</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 6/01/24</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,487,191</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">St. Marys Coll., Academic &amp; Auxil. Fees, Ser. A, AMBAC,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 9/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/12</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,022,760</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 9/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">09/12</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,019,810</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">37,528,683</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;26.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Children&#146;s Trust Fund, Tobacco Settlement Rev., 5.50%, 5/15/39</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,755,140</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,060</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Puerto Rico Elec. Pwr. Auth., Ser. HH, 5.25%, 7/01/29, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/10</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,147,241</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Puerto Rico Hwy. &amp; Transp. Auth.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.25%, 7/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,046,340</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. J, 5.00%, 7/01/29, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">515,015</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Puerto Rico Pub. Bldgs. Auth., Gov&#146;t Facs., Ser. D,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,100</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=1 face="serif">5</font></sup>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.375%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,259,544</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">400</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.375%, 7/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">413,804</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,137,084</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;7.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=1 face="serif">6</font></sup>

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,297,100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;156.2% (cost $45,860,040)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD><font size=1 face="serif">$</font>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">47,962,867</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;2.4%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">753,842</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(58.6)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">(18,001,975</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD><font size=1 face="serif">$</font>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">30,714,734</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
</TABLE>
<BR><P>___________</P>
<P>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. </FONT></P>
<P><SUP><FONT size=1
face="serif">3</FONT></SUP><FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Security is deemed to be of investment grade quality by the investment advisor.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2004, the Trust held 7.5% of its net assets, with a current market value of $2,297,100, in securities restricted as to resale.</FONT></P>
<div align="center">
</div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="7" align=left><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
  <TD colspan="7" align=left><div align="center"><b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b></div></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Municipal Bond Assurance Corporation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">GO</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; General Obligation</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Guaranty Insurance Company</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Municipal Bond Insurance Association</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Security Assurance</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="7" align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">35</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_74"></A>




<A name="page_75"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS</FONT></B>&nbsp;
        </TD>
        <TD width="12%" align=left>

        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD width="7%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=8>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width="9%" align=center></TD>
  <TD width="2%" align=left></TD>
  <TD width="8%" align=right>
    <div align="center"><b><font size=2 face="serif">Principal</font></b> </div></TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="59%" align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Amount</font></b>&nbsp; </div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Option Call</font></b></div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">(000)</FONT></B>
      </div></TD>
        <TD align=left>
<B><FONT size=2 face="serif"></FONT></B>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;156.3%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New Jersey&#151;122.3%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=1 face="serif">Garden St. Pres. Trust, Open Space &amp; Farmland Pres., Ser. B, Zero Coupon, 11/01/27, FSA</FONT>&nbsp;
      </div></TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left><font size=1 face="serif">$</font>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,213,120</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New Jersey Econ. Dev. Auth.,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,335</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Continental Airlines Inc. Proj., 7.00%, 11/15/30</FONT>
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/10</FONT>
          <FONT size=1 face="serif">@ 101</FONT> </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,813,898</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Fellowship Village, Ser. A, 5.50%, 1/01/25</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/08</FONT>
          <FONT size=1 face="serif">@ 102</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,965,960</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kapkowski Road Landfill Proj., 6.50%, 4/01/28</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,558,993</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sld. Wst. Rev., Disp. Wst. Mgmt., Ser. A, 5.30%, 6/01/15</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,029,680</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,760</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Victoria Hlth., Ser. A, 5.20%, 12/20/36</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">12/11</FONT>
        <FONT size=1 face="serif">@ 103</FONT>&nbsp;
          </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,827,408</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Winchester, Ser. A, 5.80%, 11/01/31</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,459,875</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New Jersey Edl. Facs. Auth.,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Fairleigh Dickinson Univ., Ser. C, 5.50%, 7/01/23</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">512,310</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Fairleigh Dickinson Univ., Ser. C, 6.00%, 7/01/20</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,077,990</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Fairleigh Dickinson Univ., Ser. D, 6.00%, 7/01/25</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,053,280</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">630</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Georgian Court Coll. Proj., Ser. C, 6.50%, 7/01/33</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">690,285</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New Jersey Hlth. Care Fac. Fin. Auth.,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Atlantic City Med. Ctr., 5.75%, 7/01/25</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,088,260</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Catholic Hlth. East, Ser. A, 5.375%, 11/15/33</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,035,160</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left><font size=1 face="serif">&nbsp;</font><sup><font size=1 face="serif">3</font></sup>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kennedy Hlth. Sys., 5.625%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/11</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,054,920</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">So. Jersey Hosp., 6.00%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,597,850</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=1 face="serif">New Jersey Hsg. &amp; Mtg. Fin. Agcy., Mult. Fam. Hsg. Rev., Ser. A, 5.65%, 5/01/40, AMBAC</FONT>&nbsp;
      </div></TD>
        <TD align=left>
      <div align="center"><FONT size=1 face="serif">11/07</FONT>
          <font size=1 face="serif">@ 101.5</font>      </div></TD>
        <TD align=left>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,335,365</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Port Auth. of NY &amp; NJ,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. 125, 5.00%, 4/15/32, FSA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/12</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;


        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,530,210</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. 126, 5.25%, 5/15/37, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,310,750</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Caa2</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">130</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Spec. Oblig., Contl./Eastern Proj. LaGuardia, 9.125%, 12/01/15</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/04</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">131,106</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp., 6.125%, 6/01/42</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,923,260</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Univ. of Med. &amp; Dentistry, Ser. A, 5.00%, 12/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">12/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,018,300</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Vineland, GO, MBIA,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.30%, 5/15/29</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/10</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,040,400</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.375%, 5/15/32</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/10</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,550,400</FONT>&nbsp;
    </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">40,818,780</FONT>&nbsp;
    </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;27.1%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Puerto Rico Elec. Pwr. Auth., Ser. 2, 5.25%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,309,423</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Puerto Rico Hwy. &amp; Transp. Auth., Ser. D, 5.25%, 7/01/38</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,194,997</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Puerto Rico Pub. Bldgs. Auth., Gov&#146;t Facs., Ser. D,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,685</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=1 face="serif">4</font></sup>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,914,935</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">615</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 7/01/27</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">636,131</FONT>&nbsp;
    </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,055,486</FONT>&nbsp;
    </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;6.9%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,297,100</FONT>&nbsp;
    </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost $51,313,438)</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">52,171,366</FONT>&nbsp;
    </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">36</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_76"></A>




<A name="page_77"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=3 align=left>
<B><FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ) (continued)</FONT></B>&nbsp;
        </TD>
        <TD width=1% align=left>

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=6>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=6>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width=13% align=right>&nbsp;</TD>
        <TD width=10% align=right>
      <div align="center"><B><FONT size=2 face="serif">Shares</FONT></B>
      </div></TD>
        <TD width=68% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width=13% align=right>&nbsp;</TD>
        <TD width=10% align=right>
      <div align="center"><B><FONT size=2 face="serif">(000)</FONT></B>
      </div></TD>
        <TD width=68% align=left>
<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD width=1% align=left>

        </TD>
        <TD width=7% align=right>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD colspan="2">
    <HR align="center" size=1 noshade>    </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD width=13% align=left></TD>
        <TD width=10% align=left>

          <div align="center"></div></TD>
        <TD width=68% align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;1.5%</FONT></B>&nbsp;
        </TD>
        <TD width=1% align=left>

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width=13% align=right>&nbsp;</TD>
        <TD width=10% align=right>
      <div align="center"><FONT size=1 face="serif">500</FONT>
      </div></TD>
        <TD width=68% align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $500,000)</FONT>&nbsp;
        </TD>
        <TD width=1% align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">500,000</FONT>
        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD width=13% align=left></TD>
        <TD width=10% align=left>

        </TD>
        <TD width=68% align=left>
<B><FONT size=1 face="serif">Total Investments&#151;157.8% (cost $51,813,438)</FONT></B>&nbsp;
        </TD>
        <TD width=1% align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">52,671,366</FONT>
        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width=13% align=left></TD>
        <TD width=10% align=left>

        </TD>
        <TD width=68% align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;2.8%</FONT>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">938,159</FONT>
        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width=13% align=left></TD>
        <TD width=10% align=left>

        </TD>
        <TD width=68% align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(60.6)%</FONT>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">(20,225,389</FONT>
        </TD>
        <TD width=1% align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD width=13% align=left></TD>
        <TD width=10% align=left>

        </TD>
        <TD width=68% align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD width=1% align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">33,384,136</FONT>
        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
</TABLE>
<BR><P>___________</P>
<P>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. </FONT></P>
<P><SUP><FONT size=1
face="serif">3</FONT></SUP><FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2004, the Trust held 6.9% of its net assets, with a current market value of $2,297,100, in securities restricted as to resale.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=center colspan=7><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=7>
<B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Municipal Bond Assurance Corporation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">GO</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; General Obligation</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Guaranty Insurance Company</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Municipal Bond Insurance Association</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Security Assurance</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="7" align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">37</FONT></P>

<hr noshade align="center" width="100%" size=2>
<PAGE> <A name="page_78"></A> <A name="page_79"></A>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS</FONT></B>&nbsp;
        </TD>
        <TD width=10% align=left>&nbsp;

        </TD>
        <TD width=6% align=left>&nbsp;

        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=8>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width="8%" align=left>&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="5%" align=left><div align="center"><b><font size=2 face="serif">Principal</font></b></div></TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="61%" align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><div align="center"><b><font size=2 face="serif">Amount</font></b></div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><div align="center"><b><font size=2 face="serif">Option Call</font></b>&nbsp;</div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left><div align="center"><b><font size=2 face="serif">Rating</font></b><b><sup><font size=2 face="serif">1</font></sup></b>&nbsp; </div></TD>
  <TD>&nbsp;</TD>
  <TD align=left><div align="center"><b><font size=2 face="serif">(000)</font></b> </div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><b><font size=2
face="serif">Description</font></b>&nbsp; </TD>
  <TD align=left><div align="center"><b><font size=2 face="serif">Provisions</font></b><b><sup><font size=2 face="serif">2</font></sup></b>&nbsp; </div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><div align="center"><b><font size=2 face="serif">Value</font></b>&nbsp;</div></TD>
</TR>
<TR valign="bottom">
  <TD align=left><HR noshade size=1></TD>
  <TD><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;159.7%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New York&#151;147.1%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD><font size=1 face="serif">$</font>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=1 face="serif">Herkimer Cnty. Indl. Dev. Agcy., Civic Fac. Rev., Coll. Foundation Inc. Student Hsg.,</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 8/01/34</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,016,240</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Transp. Auth.,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,085</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 11/15/25, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,114,436</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,470</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 11/15/30, FSA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,601,285</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.25%, 11/15/31, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,209,850</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Dedicated Tax Fund, Ser. A, 5.00%, 11/15/28, FSA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,087,700</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Dedicated Tax Fund, Ser. A, 5.00%, 11/15/31, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/11</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,065,850</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,660</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Refdg Transp., Ser. E, 5.25%, 11/15/31, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,771,640</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Svc. Contract, Ser. A, 5.00%, 7/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,148,700</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=1 face="serif">New York City Indl. Dev. Agcy., Lycee Francais De Proj., Ser. A, 5.375%, 6/01/23, ACA</FONT>&nbsp;
      </div></TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">12/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,537,425</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Transl. Fin. Auth., Ser. B, 5.00%, 5/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/11</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,092,640</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=1 face="serif">New York City Trust Cultural Resources, American Museum of Natural History, Ser. A,</FONT>&nbsp;
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 7/01/44, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,059,300</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,320</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Cntys. Tobacco Trust III, 6.00%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,072,726</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Dorm. Auth.,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Brooklyn Law School, Ser. B, 5.125%, 7/01/30, XLCA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,127,350</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Hosp. Lutheran Med., 5.00%, 8/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">02/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,106,260</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Insured Fit Student Hsg. Corp., 5.125%, 7/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,573,600</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,160</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Iona Coll., 5.00%, 7/01/27, XLCA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,217,323</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Joachim &amp; Ann Residence, 5.25%, 7/01/27</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,034,440</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Memorial Sloan Kettering Ctr., Ser. 1, Zero Coupon, 7/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,656,600</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">New York &amp; Presbyterian Hosp., 5.00%, 8/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">02/08</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,047,800</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">New York Univ., Ser. 2, 5.00%, 7/01/41, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/11</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,059,290</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sch. Dist. Fin., Ser. A, 5.00%, 4/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,029,300</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sch. Dist. Fin., Ser. D, 5.00%, 10/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,553,620</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,000</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=1 face="serif">3</font></sup>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">St. Barnabas, Ser. A, 5.00%, 2/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,100,660</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left><SUP><FONT size=1 face="serif">4</FONT></SUP>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Univ. Dorm. Facs., 5.00%, 7/01/12, MBIA</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,633,400</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Winthrop Univ. Hosp. Assoc., Ser. A, 5.25%, 7/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/11</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,080,680</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Urban Dev. Corp.,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.00%, 3/15/33, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">03/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,056,000</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C-1, 5.00%, 3/15/33, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">03/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,535,000</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Triborough Brdg. &amp; Tunl. Auth., Ser. E, 5.00%, 11/15/32, MBIA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,141,400</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,487,900</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">134,218,415</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;12.6%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,600</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Children&#146;s Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,681,540</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Puerto Rico Indl. Fin. Auth., Med. &amp; Env. Ctrl. Facs., Polytecnic Univ., Ser. A,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 8/01/32, ACA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,847,100</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">11,528,640</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost $144,612,551)</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">145,747,055</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
</TABLE>

<div align="center"><BR>
      <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">38</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_80"></A>




<A name="page_81"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE) (continued)</FONT></B>&nbsp;
        </TD>
        <TD width=1% align=left>

        </TD>
        <TD width=6% align=left>

        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width=11% align=right>&nbsp;</TD>
        <TD width=6% align=right>
      <div align="center"><B><FONT size=2 face="serif">Shares</FONT></B>
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=73% align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">(000)</FONT></B>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD colspan="4">
    <HR noshade size=1>    </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;0.1%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">50</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $50,000)</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">50,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;159.8% (cost $144,662,551)</FONT></B>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">145,797,055</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.6%</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,469,796</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(61.4)%</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">(56,006,912</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">91,259,939</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P><P>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. </FONT></P>
<P><SUP><FONT size=1
face="serif">3</FONT></SUP><FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<FONT size=1 face="serif">The value (market value plus accrued interest) of securities that are covered by insurance, which insures the payment of principal and interest, represents approximately 86.8% of the Trust&#146;s managed assets.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=center colspan=7><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=7>
<B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Capital Access</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Security Assurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Municipal Bond Assurance Corporation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Municipal Bond Insurance Association</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Guaranty Insurance Company</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; XL Capital Assurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="7" align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">39</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_82"></A>




<A name="page_83"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS</FONT></B>&nbsp;
        </TD>
        <TD width="13%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="6%" align=left>

        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=center><strong><font size="2" face="serif">Principal</font></strong></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD width="8%" align=left>&nbsp;

        </TD>
        <TD width="2%" align=left>

        </TD>
        <TD align=left>
      <div align="center"><B><FONT size=2 face="serif">Amount</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>
      <div align="center"><B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD width="9%" align=right>
      <div align="center"><B><FONT size=2 face="serif">(000)</FONT></B>
      </div></TD>
        <TD width="2%" align=left>
<B><FONT size=2 face="serif"></FONT></B>&nbsp;
        </TD>
        <TD width="57%" align=center>
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD align=left>
      <div align="center"><B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Value</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;157.4%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New York&#151;115.1%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;
</TD>
        <TD align=right>
<FONT size=1 face="serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT size=1 face="serif">&nbsp;&nbsp;</FONT> <FONT size=1 face="serif">&nbsp;</FONT><FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dutchess Cnty. Ind. Dev. Agcy., Civic Facs. Rev., Vassar Coll. Proj., 5.35%, 9/01/40</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/11</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
    </div></TD>
        <TD><font size=1 face="serif">$</font>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,085,160</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Transp. Auth., Ded. Tax Fund, Ser. A, 5.125%, 11/15/31</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,039,150</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City, GO, Ser. D, 5.375%, 6/01/32</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,106,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Hlth. &amp; Hosp. Corp., Hlth. Sys., Ser. A, 5.375%, 2/15/26</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">02/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,121,934</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Hsg. Dev. Corp., Mult. Fam. Hsg. Rev., Ser. A, 5.50%, 11/01/34</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,567,350</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Mun. Wtr. Fin. Auth., Ser. A, 5.25%, 6/15/33, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/11</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,586,050</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,445</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Cntys. Tobacco Trust III, 6.00%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,337,376</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Dorm. Auth.,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,465</FONT>
        </TD>
        <TD align=left><font size=1 face="serif">&nbsp; </font><sup><font size=1 face="serif">3</font></sup>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">City Univ., Ser. A, 5.25%, 7/01/11</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">N</FONT>
        <font size=1 face="serif">/A</font>

    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,808,276</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">285</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">City Univ., Ser. A, 5.25%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/11</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">290,187</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Iona Coll., 5.125%, 7/01/32, XLCA</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,562,325</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Lenox Hill Hosp. Oblig. Grp., 5.50%, 7/01/30</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/11</FONT>
        <FONT size=1 face="serif">@ 101</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,113,880</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Willow Towers Inc. Proj., 5.40%, 2/01/34</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
        <FONT size=1 face="serif">@ 101</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,609,800</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,750</FONT></TD>
        <TD align=left><font size=1 face="serif">&nbsp; </font><sup><font size=1 face="serif">4</font></sup>

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Env. Facs. Corp., Mun. Wtr. Proj., Ser. D, 5.125%, 6/15/31</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,829,035</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aa1</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,980</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Mtg. Agcy., Ser. 101, 5.40%, 4/01/32</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/11</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,028,902</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Urban Dev. Corp., Ser. A, 5.25%, 3/15/32</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">03/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,128,150</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Port Auth. of NY &amp; NJ,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,750</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. 126, 5.25%, 5/15/37, FGIC</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12</FONT>
        <FONT size=1 face="serif">@ 101</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,824,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Caa2</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,600</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Spec. Oblig., Contl./Eastern Proj. LaGuardia, 9.125%, 12/01/15</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/04</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,622,126</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Suffolk Cnty. Indl. Dev. Agcy., Keyspan Port Jefferson Proj., 5.25%, 6/01/27</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">505,980</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,743,950</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">46,910,381</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;33.6%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,650</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Children&#146;s Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,208,897</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Puerto Rico Pub. Impvt., Ser. A,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">925</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=1 face="serif">3</font></sup>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.125%, 7/01/11</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">N</FONT>
        <font size=1 face="serif">/A</font>

    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,046,721</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,825</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.125%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/11</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,850,404</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Puerto Rico Elec. Pwr. Auth., Ser. 2, 5.25%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
        <FONT size=1 face="serif">@ 101</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,052,820</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Puerto Rico Hwy. &amp; Transp. Auth., Ser. D, 5.25%, 7/01/38</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12 @ 100</FONT> </div>
    </TD>
        <TD>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,557,925</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Puerto Rico Pub. Bldgs. Auth., Gov&#146;t Facs., Ser. D,</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,980</FONT></TD>
        <TD align=left><font size=1 face="serif">&nbsp; </font><sup><font size=1 face="serif">3</font></sup>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">N</FONT>
        <font size=1 face="serif">/A</font>

    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,250,191</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">720</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 7/01/27</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">744,739</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">13,711,697</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;7.1%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT></TD>
        <TD align=left><font size=1 face="serif">&nbsp; </font><sup><font size=1 face="serif">5</font></sup>

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/14</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,871,375</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust Territories&#151;1.6%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Ba3</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">635</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Northern Mariana Islands Commerce, Ser. A, 6.75%, 10/01/33</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13</FONT>
        <FONT size=1 face="serif">@ 100</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">644,919</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;157.4% (cost $61,666,910)</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD><font size=1 face="serif">$</font>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">64,138,372</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;2.0%</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">822,583</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(59.4)%</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">(24,204,182</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD><u><font size=1 face="serif">$</font></u>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">40,756,773</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
      <hr noshade size=2>       </TD>
        <TD>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P><P>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2004, the Trust held 7.1% of its net assets, with a current market value of $2,871,375, in securities restricted as to resale.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=5% align=left><HR noshade size=1></TD>
  <TD width=1%><HR noshade size=1></TD>
  <TD colspan=3 align=left><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD colspan="5" align=left>     <div align="center"><B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>&nbsp;
    </div></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=55% align=left>
<FONT size=2 face="serif">&#151; Financial Guaranty Insurance Company</FONT>&nbsp;
        </TD>
        <TD width=5%><font size=2 face="serif">XLCA</font>
        </TD>
        <TD width=34% align=right>
      <div align="left"><FONT size=2 face="serif">&#151; XL Capital Assurance</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">GO</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; General Obligation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="5" align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">40</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_84"></A>




<A name="page_85"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS</FONT></B>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="12%" align=left>

        </TD>
        <TD width="1%" align=left>

        </TD>
        <TD width="9%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width="8%" align=center></TD>
  <TD width="2%">&nbsp;</TD>
  <TD width="7%" align=right>&nbsp;
    <div align="center"><b><font size=2 face="serif">Principal</font></b></div></TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="57%" align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Amount</font></b>&nbsp; </div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center><b><font size=2 face="serif">Option Call</font></b> </TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">(000)</FONT></B>
      </div></TD>
        <TD align=left>
<B><FONT size=2 face="serif"></FONT></B>&nbsp;
        </TD>
        <TD align=left>
      <div align="center"><B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;162.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New York&#151;149.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">$</FONT><FONT size=1 face="serif">1,750</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Clarence Indl. Dev. Agcy., Civic Fac. Rev., Bristol Village Proj., 6.00%, 1/20/44</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/13</FONT>
          <FONT size=1 face="serif">@ 102</FONT>
      </div></TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,907,395</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dutchess Cnty. Ind. Dev. Agcy., Civic Facs. Rev., Vassar Coll. Proj., 5.35%, 9/01/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/11</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,170,320</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">625</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Essex Cnty. Indl. Dev. Agcy., Solid Wst. Disp. Rev., Intl. Paper Co. Proj., Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 10/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">619,450</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Geneva Indl. Dev. Agcy., Civic Fac. Rev., Hobart &amp; William Smith Proj., Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.375%, 2/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">02/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,344,380</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">385</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Herkimer Cnty. Indl. Dev. Agcy., Civic Fac. Rev., Coll. Foundation Inc. Student Hsg.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 8/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">391,253</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,515</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Long Island Pwr. Auth., Elec. Sys. Rev., Ser. A, Zero Coupon, 6/01/28, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <FONT size=1 face="serif">No Opt. Call</FONT>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,053,867</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Transp. Auth., Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 11/15/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,083,940</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ded. Tax Fund, 5.00%, 11/15/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,026,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Svc. Contract Rev., 5.125%, 1/01/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,085,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City, GO, Ser. B, 5.75%, 12/01/22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">12/11</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,421,150</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Indl. Dev. Agcy.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Eger Harbor Proj., Ser. A, 4.95%, 11/20/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,005,060</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Eger Harbor Proj., Ser. A, 5.875%, 5/20/44</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
        <FONT size=1 face="serif">@ 105</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,103,990</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Indl. Dev. Rev., Empowerment Zone Harlem Mall, 5.125%, 12/30/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/14</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,944,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Lycee Francais De Proj., Ser. A, 5.375%, 6/01/23, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">12/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,522,455</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Mun. Wtr. Fin. Auth., Ser. A, 5.125%, 6/15/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,104,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD colspan=3 align=left>
<FONT size=1 face="serif">New York City Trans. Auth., Met. Transp. Auth., Triborough Brdg. &amp; Tunl. Auth., COP, Ser. A,</FONT>
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 1/01/29, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/10</FONT>
          <FONT size=1 face="serif">@ 101</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,175,650</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Trans. Fin. Auth., Ser. B, 5.00%, 11/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,090,750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,535</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Cntys. Tobacco Trust III, 6.00%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,346,193</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Dorm. Auth.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Brooklyn Law School, Ser. B, 5.125%, 7/01/30, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,563,675</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kateri Residence, 5.00%, 7/01/22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,024,440</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Memorial Sloan Kettering Ctr., Ser. 1, 5.00%, 7/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,053,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Mount St. Mary Coll., 5.00%, 7/01/32, RAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,008,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,425</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">New York Univ., 5.00%, 7/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/11</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,455,410</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left><font size=1 face="serif">&nbsp; </font><sup><font size=1 face="serif">3</font></sup>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">St. Barnabas, Ser. A, 5.00%, 2/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">08/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,535,950</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left><font size=1 face="serif">&nbsp; </font><sup><font size=1 face="serif">4</font></sup>

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Univ. Dorm. Facs., 5.00%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">N/A</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,633,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Energy Res. &amp; Dev. Auth., Facs. Rev., 4.70%, 6/01/36</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/05</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,531,515</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Urban Dev. Corp., Ser. C-1, 5.00%, 3/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">03/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,021,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Caa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,675</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Port Auth. of NY &amp; NJ, Spec. Oblig., Contl./Eastern Proj. LaGuardia, 9.125%, 12/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/04</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,706,274</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Suffolk Cnty. Indl. Dev. Agcy., Keyspan Port Jefferson Proj., 5.25%, 6/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,529,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Triborough Brdg. &amp; Tunl. Auth., Ser. A, 5.00%, 1/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,522,675</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,231,850</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">104,215,342</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;6.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,400</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Children&#146;s Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,230,810</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Puerto Rico Hwy. &amp; Transp. Auth.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.375%, 7/01/36</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/12</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,069,020</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. G, 5.00%, 7/01/42</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/13</FONT>
          <FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,004,350</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,304,180</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;6.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.75%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">526,010</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 6.00%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,064,330</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.00%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,577,055</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.30%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,063,080</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,230,475</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">41</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_86"></A>




<A name="page_87"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY) (continued)</FONT></B>&nbsp;
        </TD>
        <TD width="17%" align=left>

        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD width="6%" align=left>

        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD width="8%" align=left><div align="center"></div></TD>
  <TD width="1%" align=left><div align="center"></div></TD>
  <TD width="10%" align=right><div align="center"><b><font size=2 face="serif">Principal</font></b>&nbsp; </div></TD>
  <TD width="1%" align=left><div align="center"></div></TD>
  <TD width="55%" align=left><div align="center"></div></TD>
  <TD align=right><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=right><div align="center"></div></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Amount</font></b>&nbsp; </div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Option Call</font></b> </div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=right><div align="center"></div></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="center"><B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">(000)</FONT></B>
    </div></TD>
        <TD align=left>
      <div align="center"><B><FONT size=2 face="serif"></FONT></B>
      </div></TD>
        <TD align=left>
 <div align="center"><B><FONT size=2
face="serif">Description</FONT></B>
    </div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Value</FONT></B>
    </div></TD>
        <TD align=left>

        </TD>
</TR>
<TR>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust Territories&#151;1.6%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Ba3</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;
</TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">$</FONT> <FONT size=1 face="serif">1,105</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Northern Mariana Islands Commerce, Ser. A, 6.75%, 10/01/33</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/13</FONT><FONT size=1 face="serif">@ 100</FONT>
      </div></TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,122,260</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;162.9% (cost $111,965,007)</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">113,872,257</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.0%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">688,912</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(63.9)%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">(44,657,700</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">69,903,469</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P><P>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=center colspan=7><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=7>
<B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Capital Access</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">GO</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; General Obligation</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Municipal Bond Assurance Corporation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Municipal Bond Insurance Association</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">COP</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Certificate of Participation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">RAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Radian Asset Assurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Guaranty Insurance Company</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; XL Capital Assurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Security Assurance</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="7" align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">42</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS</FONT></B>&nbsp;
        </TD>
        <TD width="0%">&nbsp;
        </TD>
        <TD width="14%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="7%" align=left>

        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<B><FONT face="serif">AUGUST 31, 2004</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=10><b><font size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV)</font></b>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="8%" align=left>&nbsp;

        </TD>
        <TD width="2%" align=left>

        </TD>
        <TD colspan=3 align=left>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;
</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD align=left></TD>
  <TD width="8%" align=right><div align="center"><b><font size=2 face="serif">Principal</font></b>&nbsp;</div></TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="57%" align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><div align="center"><b><font size=2 face="serif">Amount</font></b>&nbsp;</div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><div align="center"><b><font size=2 face="serif">Option Call</font></b> </div></TD>
  <TD>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">(000)</FONT></B>
      </div></TD>
        <TD align=left>
<B><FONT size=2 face="serif"></FONT></B>
        </TD>
        <TD align=left>
<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="center"><B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Value</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;155.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Virginia&#151;142.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>&nbsp;
</TD>
        <TD align=right>
<FONT size=1 face="serif"><FONT size=1 face="serif">$</FONT> <FONT size=1 face="serif"></FONT>1,485</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Alexandria Redev. &amp; Hsg. Auth., 3001 Park Cntr. Apts., Ser. A, 6.375%, 4/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/08</FONT>
        <FONT size=1 face="serif">@ 103</FONT>&nbsp;
          </div></TD>
        <TD><font size=1 face="serif">$</font>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,525,422</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left><SUP><FONT size=1 face="serif">4</FONT></SUP>

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Arlington Cnty., GO, 5.00%, 2/01/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">02/11</FONT>
        <FONT size=1 face="serif">@ 100</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,567,485</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,150</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Arlington Cnty. Ind. Dev. Auth., Hosp. Fac. Rev., Virginia Hosp. Ctr., Arlington Hlth. Sys.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/11</FONT>
        <FONT size=1 face="serif">@ 101</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,182,078</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Celebrate North Cmnty. Dev. Auth., Spl. Assmt. Rev., Ser. B, 6.75%, 3/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">03/14</FONT>
        <FONT size=1 face="serif">@ 102</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,535,190</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Danville Ind. Dev. Auth., Hosp. Rev., Danville Regl. Med. Ctr, 5.25%, 10/01/28, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,596,030</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dulles Town Ctr. Cmnty. Dev. Auth., Spl. Assmt. Tax, Dulles Town Ctr. Proj., 6.25%, 3/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">03/08</FONT>
        <FONT size=1 face="serif">@ 102</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,019,820</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Fairfax Cnty. Wtr. Auth., Wtr. Rev, 5.00%, 4/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,531,275</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hampton, GO, 5.00%, 4/01/20</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">04/12</FONT>
        <FONT size=1 face="serif">@ 101</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,062,170</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Henrico Cnty. Econ. Dev. Auth., Bon Secours Hlth. Sys. Inc., Ser. A, 5.60%, 11/15/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,548,765</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,300</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Isle Wight Cnty. Indl. Dev. Auth., Env. Impvt. Rev., Ser. A, 5.70%, 11/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">11/13</FONT>
        <FONT size=1 face="serif">@ 100</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,307,475</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Arpts. Auth., Arpt. Sys. Rev., Ser. A, 5.25%, 10/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,529,730</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Norfolk Arpt. Auth., Ser. A, 5.125%, 7/01/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/11</FONT>
        <FONT size=1 face="serif">@ 100</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,522,620</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pocahontas Pkwy. Assoc., Toll Road Rev., Ser. B, Zero Coupon, 8/15/22, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="center"><FONT size=1 face="serif">08/08 @ 45.5</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,653,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,375</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Prince William Cnty., COP, 5.00%, 12/01/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">06/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,440,642</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Richmond Met. Auth., Expwy. Rev., 5.25%, 7/15/22, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,408,788</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Richmond Pub. Util., 5.00%, 1/15/33, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">01/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,042,240</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Virginia Coll. Bldg. Auth., Edl. Facs. Rev., Washington &amp; Lee Univ. Proj., MBIA,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 1/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">547,520</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 1/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><FONT size=1 face="serif">No Opt. Call</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,092,460</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Virginia Hsg. Dev. Auth., Comnwlth. Mtg. Rev., Ser. H, 5.375%, 7/01/36, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">07/11</FONT>
        <FONT size=1 face="serif">@ 100</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,071,130</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Virginia Res. Auth.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Infrastructure Rev., Ser. A, 5.00%, 5/01/22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/11</FONT>
        <FONT size=1 face="serif">@ 101</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,044,640</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">635</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Infrastructure Rev., Ser. A, 5.125%, 5/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/11</FONT>
        <FONT size=1 face="serif">@ 101</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">655,485</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wtr. &amp; Swr. Sys. Rev., Frederick Cnty. Sanitation Auth. Proj., 5.20%, 10/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/10</FONT>
        <FONT size=1 face="serif">@ 100</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,543,710</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">33,427,875</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;5.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,460</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Children&#146;s Trust Fund, Tobacco Settlement Rev., 5.375%, 5/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">05/12</FONT>
        <FONT size=1 face="serif">@ 100</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,324,585</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;7.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>
        </TD>
        <TD align=left><SUP><FONT size=1 face="serif">5</FONT></SUP>

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=1 face="serif">10/14</FONT>
        <FONT size=1 face="serif">@ 100</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,722,825</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;155.0% (cost $34,721,790)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">36,475,285</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;2.5%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">577,545</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(57.5)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">(13,526,206</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">23,526,624</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
</TABLE>
<BR><P>___________</P>
<P>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. </FONT></P>
<P><SUP><FONT size=1
face="serif">3</FONT></SUP><FONT size=1 face="serif">Security is deemed to be of investment grade quality by the investment advisor.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Entire or partial principal amount pledged as collateral for financial futures contracts.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified
institutional buyers. As of August 31, 2004, the Trust held 7.3% of its net assets, with a current market value of $1,722,825, in securities restricted as to resale.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=center colspan=7><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=7>
<B><FONT size=2 face="serif">KEY TO ABBREVIATIONS</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Capital Access</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Security Assurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; American Municipal Bond Assurance Corporation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">GO</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; General Obligation</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">COP</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Certificate of Participation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Municipal Bond Insurance Association</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#151; Financial Guaranty Insurance Company</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="7" align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">43</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_90"></A>




<A name="page_91"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=3 align=right>
      <div align="left"><B><FONT face="serif">STATEMENTS OF ASSETS AND LIABILITIES</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT face="serif">August 31, 2004</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">California</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=center>&nbsp;
</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Insured</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><font size=2 face="serif">Insured</font></B>           </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><font size=2 face="serif">Municipal</font></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right><div align="center"><b><font size=2 face="serif">Municipal</font></b>
    </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Income </FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Income </FONT></B></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=center><div align="center"><b><font size=2 face="serif">Income Trust</font></b></div></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=center><div align="center"><b><font size=2 face="serif">Bond Trust</font></b></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=center><div align="center"><b><font size=2 face="serif">Trust II</font></b></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD align=center><div align="center"><b><font size=2 face="serif">Trust</font></b> </div></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">(BYM)</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">(BBK)</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">(BLE)</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">(BCK)</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Assets</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Investments at value</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">615,411,111</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">241,437,001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">522,488,044</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">118,963,170</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Cash</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">545,585</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">549,061</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">527,158</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">504,962</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Receivable from investments sold</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,797,735</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,036,011</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Interest receivable</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,638,310</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,020,008</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,329,719</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,458,237</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Other assets</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">81,745</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">33,544</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">61,177</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,217</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">622,676,751</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">256,837,349</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">549,442,109</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">120,948,586</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Liabilities</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Payable to custodian</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Payable for investments purchased</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,347,252</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,099,138</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,293,185</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Variation margin payable</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">710,016</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">256,078</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">593,156</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">151,453</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends payable &#151; common shares</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,042,917</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">874,379</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,907,915</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">395,159</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Investment advisory fee payable</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">179,990</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">81,515</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">179,269</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">35,382</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Deferred Trustees fees</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,851</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,307</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">27,955</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,025</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Other accrued expenses</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">108,437</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">104,416</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">91,772</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">37,007</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,418,463</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,429,833</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17,093,252</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">623,026</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
    <HR noshade size=1>
        </TD>
        <TD>&nbsp;      </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Preferred Shares at Redemption Value</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">$25,000 liquidation value per share, including </FONT></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">dividends</FONT>&nbsp; <FONT size=2 face="serif">payable</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">228,992,973</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">90,515,884</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">205,579,051</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">46,502,293</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">382,265,315</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">151,891,632</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">326,769,806</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">73,823,267</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Composition of Net Assets Applicable to</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common Shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Par value</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">26,149</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,123</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,781</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,269</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Paid-in capital in excess of par</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">371,097,993</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">143,571,298</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">323,306,247</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">74,698,472</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Undistributed net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,666,265</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,173,022</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,022,926</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">518,008</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Accumulated net realized loss</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(17,644,133</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,903,576</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(14,810,926</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(858,180</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net unrealized appreciation (depreciation)</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">26,119,041</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,040,765</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,228,778</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(540,302</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net  assets  applicable to common shareholders,</FONT>&nbsp;<font size=2 face="serif">August</font>   <font size=2 face="serif">31, 2004</font></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">382,265,315</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">151,891,632</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">326,769,806</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">73,823,267</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value per common share</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.62</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">15.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.34</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=2 face="serif">1 </FONT></SUP><FONT size=2 face="serif">Investments at cost</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">587,977,772</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">232,922,623</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">507,161,989</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">119,223,258</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=2 face="serif">2 </FONT></SUP><FONT size=2 face="serif">Preferred shares outstanding</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">9,159</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">3,620</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">8,222</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,860</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=2 face="serif">3 </FONT></SUP><FONT size=2 face="serif">Common shares outstanding</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">26,149,334</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">10,123,055</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">22,781,072</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,268,785</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT>
</div>
<P align="center">
<FONT size=2 face="serif">44</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_92"></A>




<A name="page_93"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width="2%" align=left></TD>
  <TD width="10%" align=left>&nbsp;</TD>
  <TD width="3%">&nbsp;</TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="12%" align=left>&nbsp;</TD>
  <TD width="4%" align=left>&nbsp;</TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="10%" align=center><b><font size=2 face="serif">Florida</font></b></TD>
  <TD width="3%" align=left>&nbsp;</TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="10%" align=left>&nbsp;</TD>
  <TD width="3%" align=left>&nbsp;</TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="8%" align=left>&nbsp;</TD>
  <TD width="3%" align=left>&nbsp;</TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="8%" align=left>&nbsp;</TD>
  <TD width="14%" align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><font size=2 face="serif">Insured</font></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">California</FONT></B>
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">California</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><b><font size=2 face="serif">Municipal</font></b></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Florida</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Maryland</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">New Jersey</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><font size=2 face="serif">Income </font></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Income Trust II</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Trust</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BZA)</FONT></B>
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BCL)</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BAF)</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BIE)</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BZM)</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BLJ)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=18>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=18>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">77,974,358</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">179,716,440</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">198,689,201</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">80,584,051</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">47,962,867</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">52,671,366</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">534,263</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">524,403</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">368,643</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">356,039</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">518,396</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,027,016</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,671,103</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,960,496</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,306,616</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">616,090</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">696,023</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17,942</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17,109</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">31,536</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,728</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,578</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,599</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">79,553,579</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">182,929,055</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">202,049,876</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">81,907,395</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">48,943,574</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">53,895,384</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=18>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=18>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">354,847</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">91,125</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">245,109</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">213,891</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">72,984</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">45,141</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">64,125</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">266,939</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">648,757</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">653,912</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">257,504</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">143,781</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">178,331</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">23,284</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">61,169</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">59,252</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">23,935</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,371</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,788</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,178</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,567</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,088</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,788</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,822</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,570</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">44,551</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">51,828</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">58,544</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">30,386</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17,750</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,045</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">432,077</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,014,430</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">993,687</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">744,444</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">226,865</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">285,859</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=18>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=18>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=18>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=18>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right><div align="left"><font size=2 face="serif">$</font></div></TD>
  <TD align=right><font size=2 face="serif">29,976,396</font></TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="left"><font size=2 face="serif">$</font></div></TD>
  <TD align=right><font size=2 face="serif">71,962,401</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"><font size=2 face="serif">$</font></div></TD>
  <TD align=right><font size=2 face="serif">76,001,833</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"><font size=2 face="serif">$</font></div></TD>
  <TD align=right><font size=2 face="serif">29,780,135</font> </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"><font size=2 face="serif">$</font></div></TD>
  <TD align=right><font size=2 face="serif">18,001,975</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"><font size=2 face="serif">$</font></div></TD>
  <TD align=right><font size=2 face="serif">20,225,389</font></TD>
 <TR> </TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
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        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">49,145,106 </FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">109,952,224 </FONT></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>&nbsp;
</TD>
        <TD align=right>
<FONT size=2 face="serif">125,054,356 </FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>&nbsp;
</TD>
        <TD align=right>
<FONT size=2 face="serif">51,382,816 </FONT></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>&nbsp;
</TD>
        <TD align=right>
<FONT size=2 face="serif">30,714,734 </FONT></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">33,384,136 </FONT></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
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        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
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        <TD>
<HR noshade size=2>
        </TD>
        <TD>
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        </TD>
        <TD>&nbsp;
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        <TD>
<HR noshade size=2>
        </TD>
        <TD>
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        </TD>
        <TD>&nbsp;
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        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
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</TR>
<TR>
        <TD colspan=18>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=18>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=18>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">3,351</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">7,985</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">8,719</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">3,309</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,015</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,269</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">47,456,833</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">113,257,811</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">123,687,058</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">46,855,683</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">28,497,364</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">32,099,779</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">964,579</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">108,070</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">653,360</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">941,896</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">563,807</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">621,465</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,053,161</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(4,795,748</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(1,218,122</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(445,971</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(367,876</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(78,734</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,773,504</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,374,106</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,923,341</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">4,027,899</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,019,424</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">739,357</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
      <HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;      </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
      <HR align="left" size=1 noshade>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
      <HR align="left" size=1 noshade>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=18>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">49,145,106</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">109,952,224</FONT>
        </TD>
        <TD align=left>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">125,054,356</FONT>
        </TD>
        <TD align=left>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">51,382,816</FONT>
        </TD>
        <TD align=left>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">30,714,734</FONT>
        </TD>
        <TD align=left>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">33,384,136</FONT>
        </TD>
        <TD align=left>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;      </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=right><div align="left"></div></TD>
  <TD align=right><font size=2 face="serif">$14.67</font></TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="left"></div></TD>
  <TD align=right><font size=2 face="serif">$13.77</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"></div></TD>
  <TD align=right><font size=2 face="serif">$14.34</font>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"></div></TD>
  <TD align=right><font size=2 face="serif">$15.53</font>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"></div></TD>
  <TD align=right><font size=2 face="serif">$15.24</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"></div></TD>
  <TD align=right><font size=2 face="serif">$14.71</font></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right><HR noshade size=2></TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><HR noshade size=2></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><HR noshade size=2></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><HR noshade size=2></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><HR noshade size=2></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><HR noshade size=2></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">75,032,184</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">177,888,747</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">196,369,893</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">76,421,167</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">45,860,040</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">51,813,438</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,199</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,878</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">3,040</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,191</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">720</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">809</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,351,150</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,984,696</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,718,823</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,309,483</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,015,154</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,269,366</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">45</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_94"></A>




<A name="page_95"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=6 align=left>
<B><FONT face="serif">STATEMENTS OF ASSETS AND LIABILITIES (continued)</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT face="serif">August 31, 2004</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">New York</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Insured</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><font size=2 face="serif">New York</font></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=center><div align="center"><b><font size=2 face="serif">New York</font></b>    </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><font size=2 face="serif">Virginia</font></B>          </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Income </FONT></B></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right><div align="center"><b><font size=2 face="serif">Municipal</font></b>
    </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><font size=2 face="serif">Municipal</font></B>         </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><font size=2 face="serif">Municipal</font></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center><div align="center"><b><font size=2 face="serif">Trust</font></b></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD><div align="center"></div></TD>
  <TD align=center><div align="center"><b><font size=2 face="serif">Bond Trust</font></b> </div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD><div align="center"></div></TD>
  <TD align=center><div align="center"><b><font size=2 face="serif">Income Trust II</font></b></div></TD>
  <TD align=left><div align="center"></div></TD>
  <TD><div align="center"></div></TD>
  <TD align=center><div align="center"><b><font size=2 face="serif">Bond Trust</font></b></div></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">(BSE)</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">(BQH)</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">(BFY)</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">(BHV)</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Assets</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investments at value</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD><FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">145,797,055</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD><FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">64,138,372</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD><FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">113,872,257</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD><FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36,475,285</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Cash</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">518,240</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">260,426</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">238,007</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Interest receivable</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,663,024</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">864,194</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,388,925</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">512,203</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Other assets</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,062</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,119</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,530</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,914</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">148,002,381</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,279,111</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">115,272,712</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">37,232,409</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Liabilities</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Payable to custodian</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">125,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Variation margin payable</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">160,734</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">60,328</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">107,578</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">39,656</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends payable &#151; common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">482,740</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">208,244</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">388,652</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">110,164</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment advisory fee payable</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">43,385</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,140</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">38,576</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,930</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Deferred Trustees fees</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,263</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,167</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,058</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,810</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Other accrued expenses</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">44,408</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">25,277</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">46,179</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">14,019</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1>
    </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1>
    </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1>
    </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">735,530</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">318,156</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">711,543</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">179,579</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1>
    </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1>
    </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1>
    </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=3 align=left>
<B><FONT size=2 face="serif">Preferred Shares at Redemption Value</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=3 align=left>
<FONT size=2 face="serif">$25,000 liquidation value per share, including dividends</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">payable</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">56,006,912</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,204,182</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">44,657,700</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,526,206</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>&nbsp;
        </TD>
        <TD><FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">91,259,939</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD><FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">40,756,773</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD><FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">69,903,469</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD><FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">23,526,624</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Composition of Net Assets Applicable to</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common Shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Par value</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,437</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,701</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,935</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,521</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Paid-in capital in excess of par</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">91,279,438</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">38,226,462</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">69,973,071</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,493,697</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">&nbsp; &nbsp;<FONT size=2 face="serif">Undistributed (distributions in excess of) net</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">377,190</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">676,087</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(83,509</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">540,947</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Accumulated net realized loss</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,240,118</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(508,602</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,699,030</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(189,551</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net unrealized appreciation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">836,992</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,360,125</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,708,002</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,680,010</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net August assets 31, applicable 2004 to common shareholders,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">91,259,939</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">40,756,773</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">69,903,469</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">23,526,624</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value per common share</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$14.18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$15.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$14.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$15.47</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;      </TD>
        <TD><HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=2 face="serif">1 </FONT></SUP><FONT size=2 face="serif">Investments at cost</FONT>&nbsp;
        </TD>
        <TD><FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">144,662,551</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD><FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">61,666,910</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD><FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">111,965,007</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD><FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">34,721,790</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=2 face="serif">2 </FONT></SUP><FONT size=2 face="serif">Preferred shares outstanding</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,240</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">968</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,786</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">541</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=2 face="serif">3 </FONT></SUP><FONT size=2 face="serif">Common shares outstanding</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,436,539</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,700,991</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,935,268</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,521,015</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">46</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_96"></A>




<A name="page_97"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT face="serif">STATEMENTS OF OPERATIONS</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT face="serif">For the year ended August 31, 2004</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">California</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Insured</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Insured</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Income Trust</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Income Trust II</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Income Trust</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BYM)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BBK)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BLE)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BCK)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Investment Income</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Interest Income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30,951,895</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,968,563</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30,364,924</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,073,621</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Expenses</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Investment advisory</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,349,400</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,577,549</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,921,763</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">660,983</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Transfer agent</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Custodian</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">106,832</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">62,697</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">114,280</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">27,704</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reports to shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">78,707</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">35,778</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,206</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,348</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trustees</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">54,534</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,228</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">45,384</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,176</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Registration</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,732</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">27,066</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,536</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,043</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Independent accountants</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">52,345</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">38,390</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">44,566</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">42,311</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Legal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">45,827</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,672</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">41,670</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,980</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Insurance</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">48,711</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17,672</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">38,361</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,065</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Auction Agent</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">591,425</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">242,063</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">548,317</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">122,740</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Miscellaneous</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">53,799</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">32,558</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">47,689</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">23,805</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total expenses</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,426,318</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,091,679</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,895,778</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">972,161</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less fees waived by Advisor</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,217,964</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(728,099</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(796,845</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(240,357</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less fees paid indirectly</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,738</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,969</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(9,604</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(5,429</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net expenses</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,203,616</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,359,611</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,089,329</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">726,375</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">27,748,279</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,608,952</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">27,275,595</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,347,246</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT size=2 face="serif">Realized and Unrealized Gain (Loss)</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss) on:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(9,345,741</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(419,177</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,953,162</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,717</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,110,009</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,451,570</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,371,626</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(877,897</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(13,455,750</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,870,747</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(7,324,788</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(858,180</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net change in unrealized appreciation/depreciation on:</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">39,202,836</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,882,341</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">30,369,707</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,850,708</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,314,298</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(473,613</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,097,277</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(280,214</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">37,888,538</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,408,728</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,272,430</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,570,494</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net gain</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,432,788</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,537,981</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,947,642</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,712,314</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Preferred Shareholders From:</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,158,934</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(841,788</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,987,241</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(397,111</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(5,802</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,158,934</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(841,788</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,987,241</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(402,913</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT size=2 face="serif">Net Increase in Net Assets Applicable to</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders Resulting</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">from Operations</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">50,022,133</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,305,145</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">47,235,996</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,656,647</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
</TABLE>
<div align="center"><BR>
    <FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">47</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_98"></A>




<A name="page_99"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT face="serif">STATEMENTS OF OPERATIONS (continued)</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT face="serif">For the year ended August 31, 2004</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">California</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Florida</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">California</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Insured</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Florida</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Income</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Trust II</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Income Trust</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BZA)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BCL)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BAF)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BIE)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Investment Income</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Interest Income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,369,076</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,855,262</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,066,086</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,355,535</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Expenses</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Investment advisory</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">512,871</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">996,614</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,107,232</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">521,279</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Transfer agent</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Custodian</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,170</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">63,091</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,334</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">25,227</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reports to shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,677</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">28,182</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">30,772</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Trustees</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,810</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,104</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,300</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,810</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Registration</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,614</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,311</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,621</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,549</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Independent accountants</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">36,696</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">42,702</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">44,071</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">36,688</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Legal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,676</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17,548</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,610</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,678</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Insurance</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,712</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,064</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,859</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,829</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Auction Agent</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">80,242</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">198,912</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">195,989</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">75,986</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Miscellaneous</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,710</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,178</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">27,210</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,656</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total expenses</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">759,184</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,421,712</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,562,004</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">757,714</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less fees waived by Advisor</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(236,710</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(271,804</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(402,630</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(240,590</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less fees paid indirectly</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,376</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,556</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(23,434</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,433</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net expenses</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">518,098</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,145,352</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,135,940</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">513,691</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,850,978</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,709,910</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,930,146</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,841,844</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT size=2 face="serif">Realized and Unrealized Gain (Loss)</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss) on:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,414,277</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(320,667</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">122,896</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(345,607</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(516,933</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,386,772</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,254,877</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(424,739</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,931,210</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,707,439</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,131,981</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(770,346</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net change in unrealized appreciation/depreciation on:</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,140,765</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,952,087</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,088,428</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,843,970</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(168,670</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(453,587</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(395,967</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(134,985</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,972,095</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,498,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,692,461</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,708,985</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net gain</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,040,885</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,791,061</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,560,480</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,938,639</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Preferred Shareholders from:</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(241,570</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(636,870</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(648,710</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(268,790</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(18,799</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(61,378</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(6,733</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;      </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(260,369</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(636,870</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(710,088</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>

<FONT size=2 face="serif">(275,523</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT size=2 face="serif">Net Increase in Net Assets Applicable to</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders Resulting</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">from Operations</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,631,494</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,864,101</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,780,538</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,504,960</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">48</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_100"></A>




<A name="page_101"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">New York</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Maryland</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">New Jersey</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Insured</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">New York</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">New York</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Virginia</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Municipal</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Income Trust</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Income Trust II</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BZM)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BLJ)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BSE)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BQH)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BFY)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">(BHV)</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,497,733</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,011,477</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,409,746</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,505,965</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,904,188</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,954,750</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">314,278</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">347,356</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">812,945</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">419,877</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">630,672</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">239,190</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,006</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,780</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,098</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">43,091</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,779</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">38,408</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,135</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,104</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,144</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">25,268</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,107</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,532</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,076</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,444</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,444</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,542</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,810</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,176</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,444</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,204</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,405</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,601</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,614</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,606</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">886</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">41,852</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">36,401</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">43,264</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">36,531</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">40,540</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">30,587</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,647</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,665</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,029</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,716</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,924</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,822</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,508</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,888</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,382</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,702</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,244</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,711</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">50,175</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">55,774</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">146,518</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,748</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">121,145</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">38,946</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,983</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,483</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">23,632</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,949</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">23,636</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,674</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
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        <TD>
        </TD>
        <TD>
<HR noshade size=1>
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<HR noshade size=1>
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        <TD>&nbsp;
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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        <TD>&nbsp;
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</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">505,981</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">540,664</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,169,278</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">645,839</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">925,889</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">403,477</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(145,051</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(160,318</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(295,616</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(193,789</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(172,001</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(110,395</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,316</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,152</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(17,976</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,479</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,588</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,671</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>&nbsp;
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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        <TD>&nbsp;
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</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">357,614</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">377,194</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">855,686</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">448,571</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">750,300</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">290,411</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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        <TD>&nbsp;
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</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,140,119</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,634,283</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,554,060</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,057,394</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,153,888</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,664,339</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
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</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
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<FONT size=2 face="serif">(116,669</FONT>
        </TD>
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<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">279,442</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(223,758</FONT>
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<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD align=left>

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<FONT size=2 face="serif">(14,953</FONT>
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        <TD align=left>

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<FONT size=2 face="serif">(344,902</FONT>
        </TD>
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<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
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        <TD align=left>

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<FONT size=2 face="serif">(50,944</FONT>
        </TD>
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<FONT size=2 face="serif">)</FONT>&nbsp;
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</TR>
<TR valign="bottom">
        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(258,990</FONT>
        </TD>
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<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD align=left>

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<FONT size=2 face="serif">(358,189</FONT>
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<FONT size=2 face="serif">(958,321</FONT>
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<FONT size=2 face="serif">(351,952</FONT>
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<FONT size=2 face="serif">(631,443</FONT>
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<FONT size=2 face="serif">(226,212</FONT>
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<FONT size=2 face="serif">(375,659</FONT>
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<FONT size=2 face="serif">(78,747</FONT>
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<FONT size=2 face="serif">(1,182,079</FONT>
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<FONT size=2 face="serif">(976,345</FONT>
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<FONT size=2 face="serif">(277,156</FONT>
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<FONT size=2 face="serif">1,982,638</FONT>
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<FONT size=2 face="serif">2,121,310</FONT>
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<FONT size=2 face="serif">5,858,448</FONT>
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<FONT size=2 face="serif">2,663,489</FONT>
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<FONT size=2 face="serif">5,049,244</FONT>
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<FONT size=2 face="serif">1,638,654</FONT>
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<FONT size=2 face="serif">(83,403</FONT>
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<FONT size=2 face="serif">(118,571</FONT>
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<FONT size=2 face="serif">(297,512</FONT>
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<FONT size=2 face="serif">(111,337</FONT>
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<FONT size=2 face="serif">(199,248</FONT>
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<FONT size=2 face="serif">(73,485</FONT>
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<FONT size=2 face="serif">1,899,235</FONT>
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<FONT size=2 face="serif">2,002,739</FONT>
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<FONT size=2 face="serif">5,560,936</FONT>
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<FONT size=2 face="serif">2,552,152</FONT>
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<FONT size=2 face="serif">4,849,996</FONT>
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<FONT size=2 face="serif">1,565,169</FONT>
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<FONT size=2 face="serif">1,523,576</FONT>
        </TD>
        <TD align=left>&nbsp;

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<FONT size=2 face="serif">1,923,992</FONT>
        </TD>
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<FONT size=2 face="serif">4,378,857</FONT>
        </TD>
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        <TD align=left>

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<FONT size=2 face="serif">2,185,247</FONT>
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        <TD align=left>

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<FONT size=2 face="serif">3,873,651</FONT>
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        <TD align=left>&nbsp;

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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">1,288,013</FONT>
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<FONT size=2 face="serif">(162,726</FONT>
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<FONT size=2 face="serif">(164,119</FONT>
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<FONT size=2 face="serif">(480,323</FONT>
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<FONT size=2 face="serif">(194,186</FONT>
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<FONT size=2 face="serif">(410,703</FONT>
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        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1></TD>
</TR>
<TR>
        <TD>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,500,969</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,384,399</FONT>
        </TD>
        <TD align=left>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,452,594</FONT>
        </TD>
        <TD align=left>&nbsp;
</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,048,455</FONT>
        </TD>
        <TD align=left>&nbsp;
</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,616,836</FONT>
        </TD>
        <TD align=left>&nbsp;
</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,842,596</FONT>
        </TD>
        <TD align=left>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">49</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_102"></A>




<A name="page_103"></A>

<P>
<B><FONT face="serif">STATEMENTS OF CHANGES IN NET ASSETS<br>
</FONT></B><B><FONT face="serif">For the year ended August 31, 2004, and for the period</FONT></B><B><SUP><FONT face="serif">1 </FONT></SUP></B><B><FONT face="serif">ended August 31, 2003</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=4 align=right>
      <div align="center"><B><FONT size=2 face="serif">Insured Municipal Income Trust</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
      <div align="center"><B><SUP><FONT face="serif">(BYM)</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="4" align=right>
      <div align="center"><B><SUP><FONT face="serif">(BBK)</FONT></SUP></B>
      </div>

          <div align="center"></div>
          <div align="center"></div>

          <div align="center"></div>
          <div align="center"></div>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD colspan=4>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT size=2 face="serif">Increase (Decrease) in Net Assets Applicable to</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Operations</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">27,748,279</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,617,620</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,608,952</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,879,742</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(13,455,750</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,190,174</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,870,747</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(805,556</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net change in unrealized appreciation/</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">depreciation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">37,888,538</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(11,769,497</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,408,728</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(6,670,938</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">shareholders from:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,158,934</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,705,605</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(841,788</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(995,851</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(68,481</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net increase (decrease) in net assets resulting</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">from operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">50,022,133</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,952,344</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,305,145</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,338,916</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders from:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(24,514,999</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(18,333,305</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(10,492,542</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(10,290,066</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(529,092</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(24,514,999</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(18,333,305</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(10,492,542</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(10,819,158</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net proceeds from the issuance of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">343,210,001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net proceeds from the underwriters&#146;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">over-allotment option exercised</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">28,590,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Underwriting discounts and unused (additional)</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">offering costs relating to the issuance of</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">preferred shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,051</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,657,181</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">128,162</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">Reinvestment of common dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">322,573</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,675,800</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">178,549</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Net proceeds from capital share transactions</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">320,522</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">370,818,620</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">128,162</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">178,549</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total increase (decrease)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">25,827,656</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">356,437,659</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,940,765</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(6,301,693</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><font size=2 face="serif">Beginning of year </font></TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif"> 356,437,659</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">&#151;</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif"> 142,950,867</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">149,252,560</font> </TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">End of year</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">382,265,315</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">356,437,659</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">151,891,632</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">142,950,867 </FONT></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">End of year undistributed net investment income</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,666,265</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,592,764</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,173,022</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,899,905</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Commencements of investment operations for the insured trusts were October 31, 2002. This information includes the initial investments by BlackRock Funding, Inc. The other
  Trusts&#146; statements are for a full year.</FONT></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">50</FONT></P>

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<A name="page_104"></A>




<A name="page_105"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
<B><FONT size=2 face="serif">California Insured</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
<B><FONT size=2 face="serif">California Municipal</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
<B><FONT size=2 face="serif">Municipal Income Trust II</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
<B><FONT size=2 face="serif">Municipal Income Trust</FONT></B>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
<B><FONT size=2 face="serif">Bond Trust</FONT></B>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD colspan="4" align=left>
      <div align="center"><B><SUP><FONT face="serif">(BLE)</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="4" align=right>
      <div align="center"><B><SUP><FONT face="serif">(BCK)</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="4" align=right>
      <div align="center"><B><SUP><FONT face="serif">(BZA)</FONT></SUP></B>
      </div>

          <div align="center"></div>
          <div align="center"></div>

          <div align="center"></div>
          <div align="center"></div>

          <div align="center"></div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
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          <div align="center"></div></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
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<HR align="center" size=1 noshade>
        </TD>
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<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
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<HR align="center" size=1 noshade>
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          <div align="center"></div></TD>
        <TD>
<HR align="center" size=1 noshade>
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<HR align="center" size=1 noshade>
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<HR align="center" size=1 noshade>
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<HR align="center" size=1 noshade>
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<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
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          <div align="center"></div></TD>
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          <div align="center"></div></TD>
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      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>
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          <div align="center"></div></TD>
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          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
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          <div align="center"></div></TD>
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          <div align="center"></div></TD>
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      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>
      </div></TD>
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          <div align="center"></div></TD>
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          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
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<HR noshade size=1>
        </TD>
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</TR>
<TR valign="bottom">
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<FONT size=2 face="serif">$</FONT>
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<FONT size=2 face="serif">27,275,595</FONT>
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<FONT size=2 face="serif">$</FONT>
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<FONT size=2 face="serif">25,913,002</FONT>
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<FONT size=2 face="serif">$</FONT>
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<FONT size=2 face="serif">5,347,246</FONT>
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<FONT size=2 face="serif">4,154,466</FONT>
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<FONT size=2 face="serif">$</FONT>
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<FONT size=2 face="serif">3,850,978</FONT>
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<FONT size=2 face="serif">3,923,657</FONT>
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<FONT size=2 face="serif">(7,324,788</FONT>
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<FONT size=2 face="serif">(858,180</FONT>
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<FONT size=2 face="serif">)</FONT>&nbsp;
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<FONT size=2 face="serif">73,698</FONT>
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<FONT size=2 face="serif">(1,931,210</FONT>
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<FONT size=2 face="serif">333,162</FONT>
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</TR>
<TR valign="bottom">
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<FONT size=2 face="serif">29,272,430</FONT>
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<FONT size=2 face="serif">5,570,494</FONT>
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<FONT size=2 face="serif">4,972,095</FONT>
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<FONT size=2 face="serif">(3,551,261</FONT>
        </TD>
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<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD align=left>

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<FONT size=2 face="serif">(3,426,455</FONT>
        </TD>
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        </TD>
        <TD align=left>

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<FONT size=2 face="serif">(3,430,144</FONT>
        </TD>
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        </TD>
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<TR>
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<HR noshade size=1>
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<TR>
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<TR valign="bottom">
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<FONT size=2 face="serif">&#151;</FONT>
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<FONT size=2 face="serif">&#151;</FONT>
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<FONT size=2 face="serif">71,605,001</FONT>
        </TD>
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        <TD align=left>

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<FONT size=2 face="serif">&#151;</FONT>
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<TR>
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<TR valign="bottom">
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<FONT size=2 face="serif">(9,000</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD align=left>

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<FONT size=2 face="serif">4,288,500</FONT>
        </TD>
        <TD align=left>&nbsp;

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<FONT size=2 face="serif">3,573,750</FONT>
        </TD>
        <TD align=left>&nbsp;

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<FONT size=2 face="serif">&#151;</FONT>
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<FONT size=2 face="serif">(2,294,668</FONT>
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<FONT size=2 face="serif">(609,518</FONT>
        </TD>
        <TD align=left>
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        <TD align=left>

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        <TD align=left>

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<FONT size=2 face="serif">(21,849</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">101,150</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">205,295</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,451</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">84,057</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">12,499</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
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        </TD>
        <TD>
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</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">92,150</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,199,127</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,451</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">74,653,290</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(9,350</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">)</FONT></TD>
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        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,433,180</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(21,146,208</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,913,360</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,909,907</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,205,039</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,894,188</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">)</FONT>
        </TD>
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<TR>
        <TD>
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        <TD>&nbsp;
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<HR noshade size=1>
        </TD>
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        <TD>
<HR noshade size=1>
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        <TD>
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<HR noshade size=1>
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<HR noshade size=1>
        </TD>
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<HR noshade size=1>
        </TD>
        <TD>&nbsp;
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</TR>
<TR>
        <TD colspan=20>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=20>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=20>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">302,336,626</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">323,482,834</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">68,909,907</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">&#151;</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">45,940,067</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">49,834,255</font></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=right><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">326,769,806 </FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">302,336,626 </FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">73,823,267 </FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,909,907</FONT>
        </TD>
        <TD align=left>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">49,145,106 </FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif"> 45,940,067</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,022,926</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,629,878</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">518,008</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">308,708</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">964,579</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">558,336</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">51</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_106"></A>




<A name="page_107"></A>

<P>
<B><FONT face="serif">STATEMENTS OF CHANGES IN NET ASSETS (continued)<br>
</FONT></B><B><FONT face="serif">For the year ended August 31, 2004, and for the period</FONT></B><B><SUP><FONT face="serif">1 </FONT></SUP></B><B><FONT face="serif">ended August 31, 2003</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
<B><FONT size=2 face="serif">California</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
<B><FONT size=2 face="serif">Florida Insured</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
<B><FONT size=2 face="serif">Municipal Income Trust II</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
<B><FONT size=2 face="serif">Municipal Income Trust</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
<B><SUP><FONT face="serif">(BCL)</FONT></SUP></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="4" align=right>
      <div align="center"><B><SUP><FONT face="serif">(BAF)</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2003</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT size=2 face="serif">Increase (Decrease) in Net Assets Applicable to</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>



<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Operations</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,709,910</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,139,709</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,930,146</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,649,133</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,707,439</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,089,325</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,131,981</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">632,254</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net change in unrealized appreciation/</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">depreciation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,498,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(8,940,916</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,692,461</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,769,120</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">shareholders from:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(636,870</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(699,743</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(648,710</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(563,529</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(61,378</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Net increase (decrease) in net assets resulting</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">from operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,864,101</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,590,275</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,780,538</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,948,738</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders from:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(7,782,748</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(7,764,974</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(7,846,940</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(5,881,358</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(657,399</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(7,782,748</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(7,764,974</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(8,504,339</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(5,881,358</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net proceeds from the issuance of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">114,493,001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net proceeds from the underwriters&#146;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">over-allotment option exercised</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,500</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,144,250</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,006,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Underwriting discounts and additional offering</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">costs relating to the issuance of preferred</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(849,475</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(944,848</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reinvestment of common dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">137,224</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">222,296</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">156,124</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Net proceeds from capital share transactions</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">132,724</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,517,071</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">123,710,777</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total increase (decrease)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,214,077</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(10,838,178</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,276,199</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">119,778,157</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><font size=2 face="serif"> Beginning of year </font></TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">101,738,147</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">112,576,325</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">119,778,157</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">&#151;</font></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">End of year</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">109,952,224 </FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">101,738,147 </FONT></TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">125,054,356 </FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">119,778,157</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
<FONT size=2 face="serif">End of year undistributed (distributions in excess of)</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">108,070</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(182,190</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">653,360</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">219,079</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Commencements of investment operations for the insured trusts were October 31, 2002. This information includes the initial investments by BlackRock Funding, Inc. The other
  Trusts&#146; statements are for a full year.</FONT></P>
<div align="center"><FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">52</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_108"></A>




<A name="page_109"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">Florida</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">Maryland</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">New Jersey</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD colspan="4" align=left>
      <div align="center"><B><SUP><FONT face="serif">(BIE)</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="4" align=right>
      <div align="center"><B><SUP><FONT face="serif">(BZM)</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="4" align=right>
      <div align="center"><B><SUP><FONT face="serif">(BLJ)</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
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<FONT size=2 face="serif">192,616</FONT>
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        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(10,371</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,038</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(32,156</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">25,241</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,580</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,340,779</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,241,857</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,792,081</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(782,297</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,158,013</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,754,745</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=20>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=20>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">48,042,037</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">49,283,894</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">28,922,653</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">29,704,950</font> </TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">31,226,123</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">32,980,868</font></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">51,382,816 </FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">48,042,037 </FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30,714,734 </FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right><FONT size=2 face="serif">28,922,653 </FONT></TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">33,384,136 </FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31,226,123 </FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">941,896</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">458,990</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">563,807</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">311,348</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">621,465</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">291,378</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">53</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_110"></A>




<A name="page_111"></A>

<P>
<B><FONT face="serif">STATEMENTS OF CHANGES IN NET ASSETS (continued)<br>
</FONT></B><B><FONT face="serif">For the year ended August 31, 2004, and for the period</FONT></B><B><SUP><FONT face="serif">1 </FONT></SUP></B><B><FONT face="serif">ended August 31, 2003</FONT></B></P>
<HR noshade size=1>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">New York Insured</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">New York</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">Municipal Income Trust</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
      <div align="center"><B><SUP><FONT face="serif">(BSE)</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="4" align=right>
      <div align="center"><B><SUP><FONT face="serif">(BQH)</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD colspan=4>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
<B><FONT size=2 face="serif">Increase (Decrease) in Net Assets Applicable to</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Operations</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,554,060</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,829,121</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,057,394</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,032,080</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,182,079</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(58,730</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(366,905</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(143,156</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net change in unrealized appreciation/</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">depreciation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,560,936</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,723,944</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,552,152</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,803,841</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">shareholders from:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(480,323</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(420,505</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(194,186</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(249,849</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(21,352</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Net increase (decrease) in net assets resulting</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">from operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,452,594</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(374,058</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,048,455</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">813,882</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders from:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(5,792,278</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,327,194</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,498,922</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,475,984</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(155,250</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(5,792,278</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,327,194</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,498,922</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,631,234</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net proceeds from issuance of common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">85,901,501</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net proceeds from the underwriters&#146;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">over-allotment option exercised</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,718,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Underwriting discounts and additional offering</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">costs relating to the issuance of preferred</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(711,970</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(37,459</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reinvestment of common dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">168,608</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">224,736</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net proceeds from capital share transactions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">168,608</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">91,132,267</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(37,459</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total increase (decrease)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,828,924</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">86,431,015</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,549,533</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,854,811</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=15>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><font size=2 face="serif">Beginning of year </font></TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">86,431,015</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">&#151;</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">38,207,240</font> </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">40,062,051</font> </TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">End of year</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">91,259,939 </FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">86,431,015</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">40,756,773 </FONT></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">38,207,240 </FONT></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan=4 align=left>
<FONT size=2 face="serif">End of year undistributed (distributions in excess of)</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">377,190</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">95,731</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">676,087</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">312,841</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Commencements of investment operations for the insured trusts were October 31, 2002. This information includes the initial investments by BlackRock Funding, Inc. The other
  Trusts&#146; statements are for a full year.</FONT></P>
<div align="center"><FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">54</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_112"></A>




<A name="page_113"></A>

<TABLE width="60%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">New York</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">Virginia</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">Municipal Income Trust II</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan=4 align=center>
      <div align="center"><B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD colspan="4" align=left>
      <div align="center"><B><SUP><FONT face="serif">(BFY)</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="4" align=right>
      <div align="center"><B><SUP><FONT face="serif">(BHV)</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,153,888</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,857,157</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,664,339</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,655,091</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(976,345</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(722,685</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(277,156</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">237,709</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,849,996</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,853,513</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,565,169</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(910,742</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(410,703</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(476,593</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(109,756</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(121,007</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(22,888</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,616,836</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(195,634</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,842,596</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">838,163</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,663,823</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,661,882</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,320,868</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,289,511</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(151,377</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,663,823</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,661,882</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,320,868</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,440,888</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,250</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,072,125</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(567,282</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(58,033</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,662</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">61,031</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">60,042</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,250</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">534,505</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">61,031</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,009</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,950,763</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,323,011</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,582,759</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(600,716</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif">65,952,706</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif"> 70,275,717</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif"> 21,943,865</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right><font size=2 face="serif"> 22,544,581</font></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=1>
  </TD>
  <TD><HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">69,903,469</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,952,706</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">23,526,624</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,943,865</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(83,509</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(162,871</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">540,947</FONT>
        </TD>
        <TD align=left>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">307,522</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">55</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_114"></A>




<A name="page_115"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="70%" align=left>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="5%" align=left>&nbsp;

        </TD>
        <TD width="6%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD width="6%" align=left>

        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>

          <div align="center"></div>
      <div align="center"><B><FONT size=1 face="serif">For the period</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>

          <div align="center"></div>
      <div align="center"><B><FONT size=1 face="serif">October 31, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=1 face="serif">Year Ended</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>

          <div align="center"></div>
      <div align="center"><B><FONT size=1 face="serif">through</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2004</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>

          <div align="center"></div>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>


        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
    </TD>
        <TD align=right>
<FONT size=2 face="serif">13.64</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT>
        </TD>
        <TD align=left><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.83</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.94</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.62</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.92</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends to common shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.70</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=2 face="serif">Net asset value, end of period</FONT></TD>
  <TD>&nbsp;</TD>
  <TD align=left><div align="left"><font size=2 face="serif">$</font></div></TD>
  <TD align=right><font size=2 face="serif">14.62</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><div align="left"><font size=2 face="serif">$</font></div></TD>
  <TD align=right><font size=2 face="serif">13.64</font></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif"> Market  price,  end of  period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif"> 13.97</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif"> 13.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(5.39</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.84</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.77</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.84</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.55</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.73</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.40</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">380,007</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">372,269</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">46</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">382,265</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">356,438</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">228,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">228,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">66,739</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">63,919</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<div align="center"><FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">56</FONT></P>

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    <A name="page_117"></A>

  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR valign="bottom">
      <TD align=left>
    <B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK)</FONT></B>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR>
      <TD colspan=11>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>&nbsp;

      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=center>&nbsp;</TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>&nbsp;

      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;</TD>
      <TD colspan="2" align=left><div align="center"><b><font size=1 face="serif">For the period</font></b> </div></TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>&nbsp;

      </TD>
      <TD>&nbsp;
      </TD>
      <TD colspan="5" align=left>
        <div align="center"><B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
        </div></TD>
      <TD align=left>&nbsp;</TD>
      <TD colspan="2" align=left><div align="center"><B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </div></TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR>
      <TD>
      </TD>
      <TD>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD colspan=4>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
      <TD colspan="2" align=left valign="bottom"><div align="center"><B><FONT size=1 face="serif">through</FONT></B> </div></TD>
      <TD>
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>&nbsp;

      </TD>
      <TD>&nbsp;
      </TD>
      <TD colspan="2" align=left>

          <div align="center"></div>
        <div align="center"><B><SUP><FONT size=2 face="serif">2004</FONT></SUP></B>
        </div></TD>
      <TD align=left>&nbsp;</TD>
      <TD colspan="2" align=left>

          <div align="center"></div>
        <div align="center"><B><SUP><FONT size=2 face="serif">2003</FONT></SUP></B>
        </div></TD>
      <TD align=left>&nbsp;</TD>
      <TD colspan="2" align=left>
        <div align="center"><B><FONT size=1 face="serif">August 31, 2002</FONT></B>
        </div></TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD>
      </TD>
      <TD>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=right>
        <div align="left"><FONT size=2 face="serif">$</FONT>
        </div></TD>
      <TD align=right>
    <FONT size=2 face="serif">14.12</FONT>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right>
        <div align="left"><FONT size=2 face="serif">$</FONT>
        </div></TD>
      <TD align=right>
    <FONT size=2 face="serif">14.76</FONT>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
      </TD>
      <TD align=right>
    <FONT size=2 face="serif">14.33</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD>
      </TD>
      <TD>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">1.25</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">1.28</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.31</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.74</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(0.74</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)</FONT>&nbsp;
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.52</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders:</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(0.08</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)</FONT>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(0.10</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)</FONT>&nbsp;
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(0.03</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)</FONT>&nbsp;
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">&#151;</FONT>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(0.01</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)</FONT>&nbsp;
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">&#151;</FONT>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD>
      </TD>
      <TD>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">1.91</FONT>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.43</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.80</FONT>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD>
      </TD>
      <TD>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>

<TR valign="bottom">
      <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(1.04</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)</FONT>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(1.02</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)</FONT>&nbsp;
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(0.25</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)</FONT>&nbsp;
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">&#151;</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(0.05</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)</FONT>&nbsp;
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">&#151;</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR>
      <TD>
      </TD>
      <TD>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(1.04</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)</FONT>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(1.07</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)</FONT>&nbsp;
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(0.25</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)</FONT>&nbsp;
      </TD>
    </TR>
    <TR>
      <TD>
      </TD>
      <TD>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Capital changes with respect to issuance of:</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">&#151;</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">&#151;</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(0.03</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)</FONT>&nbsp;
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.01</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">&#151;</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(0.09</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)</FONT>&nbsp;
      </TD>
    </TR>
    <TR>
      <TD>
      </TD>
      <TD>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.01</FONT>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">&#151;</FONT>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(0.12</FONT>
      </TD>
      <TD align=left><FONT size=2 face="serif">)</FONT></TD>
    </TR>
    <TR>
      <TD>
      </TD>
      <TD>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>
    <HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
      <TD>
        <HR noshade size=1>
      </TD>
      <TD>
        <HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
      <TD>
        <HR noshade size=1>
      </TD>
      <TD>
        <HR noshade size=1>
      </TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD align=right>&nbsp;</TD>
      <TD align=right>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right>&nbsp;</TD>
      <TD align=right>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left><FONT size=2 face="serif">Net asset value, end of period</FONT></TD>
      <TD>&nbsp;</TD>
      <TD align=right><div align="left"><FONT size=2 face="serif">$ </FONT></div></TD>
      <TD align=right><FONT size=2 face="serif"> 15.00</FONT> </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right><div align="left"><FONT size=2 face="serif">$ </FONT></div></TD>
      <TD align=right><FONT size=2 face="serif"> 14.12</FONT> </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp; </TD>
      <TD align=right><FONT size=2 face="serif"> 14.76</FONT> </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD></TD>
      <TD></TD>
      <TD><HR noshade size=2>
      </TD>
      <TD><HR noshade size=2>
      </TD>
      <TD>&nbsp;</TD>
      <TD><HR noshade size=2>
      </TD>
      <TD><HR noshade size=2>
      </TD>
      <TD>&nbsp;</TD>
      <TD><HR noshade size=2>
      </TD>
      <TD><HR noshade size=2>
      </TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Market  price,  end of  period</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
      <TD align=right><font size=2 face="serif">14.61</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
      <TD align=right><font size=2 face="serif">13.66</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><FONT size=2 face="serif">$</FONT></TD>
      <TD align=right><font size=2 face="serif">14.90</font></TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD>
      </TD>
      <TD>
      </TD>
      <TD>
    <HR noshade size=2>
      </TD>
      <TD>
    <HR noshade size=2>
      </TD>
      <TD>&nbsp;</TD>
      <TD>
    <HR noshade size=2>
      </TD>
      <TD>
    <HR noshade size=2>
      </TD>
      <TD>&nbsp;</TD>
      <TD>
    <HR noshade size=2>
      </TD>
      <TD>
    <HR noshade size=2>
      </TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">14.87</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">(1.20</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">)%</FONT>&nbsp;
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">1.07</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
    </TR>
    <TR>
      <TD>
      </TD>
      <TD>
      </TD>
      <TD>
    <HR noshade size=2>
      </TD>
      <TD>
    <HR noshade size=2>
      </TD>
      <TD>&nbsp;
      </TD>
      <TD>
    <HR noshade size=2>
      </TD>
      <TD>
    <HR noshade size=2>
      </TD>
      <TD>&nbsp;
      </TD>
      <TD>
    <HR noshade size=2>
      </TD>
      <TD>
    <HR noshade size=2>
      </TD>
      <TD>&nbsp;
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.89</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.91</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.90</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.90</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.92</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.91</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">1.37</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">1.41</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">1.32</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before preferred share dividends</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">8.28</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">8.66</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">6.35</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.55</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.67</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">0.53</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">7.73</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">7.99</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">5.82</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left></TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

            <div align="left"></div></TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=right>
        <div align="left"><FONT size=2 face="serif">$</FONT>
        </div></TD>
      <TD align=right>
    <FONT size=2 face="serif">152,200</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
        <div align="left"><FONT size=2 face="serif">$</FONT>
        </div></TD>
      <TD align=right>
    <FONT size=2 face="serif">148,670</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
      </TD>
      <TD align=right>
    <FONT size=2 face="serif">144,196</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=left>

            <div align="left"></div></TD>
      <TD align=right>
    <FONT size=2 face="serif">65</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>

            <div align="left"></div></TD>
      <TD align=right>
    <FONT size=2 face="serif">21</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
    <FONT size=2 face="serif">22</FONT>
      </TD>
      <TD align=left>
    <FONT size=2 face="serif">%</FONT>&nbsp;
      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=right>
        <div align="left"><FONT size=2 face="serif">$</FONT>
        </div></TD>
      <TD align=right>
    <FONT size=2 face="serif">151,892</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=right>
        <div align="left"><FONT size=2 face="serif">$</FONT>
        </div></TD>
      <TD align=right>
    <FONT size=2 face="serif">142,951</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
      </TD>
      <TD align=right>
    <FONT size=2 face="serif">149,253</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=right>
        <div align="left"><FONT size=2 face="serif">$</FONT>
        </div></TD>
      <TD align=right>
    <FONT size=2 face="serif">90,500</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

            <div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
      <TD align=right>
    <FONT size=2 face="serif">90,500</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
      </TD>
      <TD align=right>
    <FONT size=2 face="serif">90,500</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left>
    <FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
      </TD>
      <TD>&nbsp;
      </TD>
      <TD align=right>
        <div align="left"><FONT size=2 face="serif">$</FONT>
        </div></TD>
      <TD align=right>
    <FONT size=2 face="serif">66,963</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left>

            <div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
      <TD align=right>
    <FONT size=2 face="serif">64,491</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
      <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
      </TD>
      <TD align=right>
    <FONT size=2 face="serif">66,233</FONT>
      </TD>
      <TD align=left>&nbsp;

      </TD>
    </TR>
  </TABLE>
  <BR>
</div>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<div align="center"><FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">57</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_118"></A>




<A name="page_119"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left><div align="center"><B><FONT size=1 face="serif">For the period</FONT></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="5" align=left>

          <div align="center"></div>
      <div align="center"><B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left><div align="center"><B><FONT size=1 face="serif">July 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD colspan=4><hr align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left valign="bottom"><div align="center"><B><FONT size=1 face="serif">through</FONT></B> </div></TD>
        <TD></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2004</FONT></SUP></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2003</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2002</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.40</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
    </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">&nbsp;</font><sup><font size=2 face="serif">2</font></sup></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.03</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.95</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.07</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.10</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends to common shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">)</FONT>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left><font size=2 face="serif">Net asset value, end of period</font></TD>
  <TD>&nbsp;</TD>
  <TD align=right><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><font size=2 face="serif"> 14.34</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><FONT size=2 face="serif"> 13.28</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><FONT size=2 face="serif">14.40 </FONT></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market  price,  end of  period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif"> $</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.92</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">$ </FONT></TD>
        <TD align=right>
<FONT size=2 face="serif">13.11</FONT></TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp; &nbsp;&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.00</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(6.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.65</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.65</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.20</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.80</FONT></TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.37</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.82</FONT></TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.61</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.69</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right><FONT size=2 face="serif">&#151;</FONT></TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.76</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.46</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.82</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">325,680</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">318,014</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">307,165</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">64</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">118</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">326,770</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">302,337</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">323,483</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">205,550</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">205,550</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">64,747</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">61,774</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Trust.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">58</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_120"></A>




<A name="page_121"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>

          <div align="center"></div>
      <div align="center"><B><FONT size=1 face="serif">For the period</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>

          <div align="center"></div>
      <div align="center"><B><FONT size=1 face="serif">October 31, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan=2 align=right>
      <div align="center"><B><FONT size=1 face="serif">Year Ended</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>

          <div align="center"></div>
      <div align="center"><B><FONT size=1 face="serif">through</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan=2 align=left>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2004</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD colspan="2" align=left>

          <div align="center"></div>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2003</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.79</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.89</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.83</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.42</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends to common shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.91</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><font size=2 face="serif">Net asset  value, end of period</font></TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=right><font size=2 face="serif">14.01</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><font size=2 face="serif">13.09</font></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market  price, end of  period</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif"> $</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif"> 14.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif"> 13.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(8.98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.96</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.32</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.27</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.69</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.72</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.19</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">73,679</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">74,302</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">41</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">73,823</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,910</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">46,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">46,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">64,691</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">62,052</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<div align="center"><FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">59</FONT></P>

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<A name="page_122"></A>




<A name="page_123"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>       <div align="center"><B><FONT size=1 face="serif">For the period</FONT></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="5" align=left>
          <div align="center"><B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
    </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>     <div align="center"><B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD colspan=4>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2">          <div align="center"><b><font size=1 face="serif">through</font></b>
    </div></TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2004</FONT></SUP></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2003</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2002</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.71</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.87</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
    </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT>
        </TD>
        <TD align=left><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.63</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.99</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.89</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.96</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=right><font size=2 face="serif"> 14.67</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><FONT size=2 face="serif"> 13.71</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><FONT size=2 face="serif">14.87</FONT></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market  price,  end  of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif"> $</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.90</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.15</FONT></TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.58 </FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.80</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2.92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.55</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.53</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.75</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.49</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.58</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.49</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.38</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.41</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">48,928</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">49,107</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">47,390</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">24</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">49,145</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">45,940</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">49,834</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">29,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">65,990</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">63,318</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,569</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>_________</P>
<P><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<div align="center"><FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">60</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_124"></A>




<A name="page_125"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL)</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=11>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>       <div align="center"><B><FONT size=1 face="serif">For the period</FONT></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan="5" align=left>
      <div align="center"><B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
          </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>     <div align="center"><B><FONT size=1 face="serif">July 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD colspan=4>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2">          <div align="center"><B><FONT size=1 face="serif">through</FONT></B> </div></TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2004</FONT></SUP></B>
          </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2003</FONT></SUP></B>
          </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2002</FONT></B>
          </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">12.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.42</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT>
        </TD>
        <TD align=left>
<SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.51</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.98</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.58</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.12</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends to common shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=right><FONT size=2 face="serif"> 13.77</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=right><FONT size=2 face="serif"> 12.76</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><FONT size=2 face="serif">14.42</FONT> </TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD><FONT size=2 face="serif">Net asset</FONT> <FONT size=2 face="serif"> value, end</FONT> <FONT size=2 face="serif">of period</FONT></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market  price, end of  period</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif"> $</FONT>
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.71</FONT></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif"> $</FONT>
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.01</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.01 </FONT></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(6.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.20</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.38</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.35</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.58</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.63</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.39</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.75</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.35</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">109,252</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">110,286</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">105,895</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">19</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">85</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">109,952</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">101,738</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">112,576</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">71,950</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;</div></TD>
        <TD align=right>
<FONT size=2 face="serif">71,950</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">63,209</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">60,353</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Trust.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">61</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=1 face="serif">For the period</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=1 face="serif">October 31, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=1 face="serif">Year Ended</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=1 face="serif">through</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2004</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.74</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT>
        </TD>
        <TD align=left>
<SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.64</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.47</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.58</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.22</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=2 face="serif">Net asset value, end of period</FONT></TD>
  <TD>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><FONT size=2 face="serif">14.34</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><FONT size=2 face="serif">13.74</FONT></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of  period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif"> 14.14</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif"> 13.20</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.82</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(7.78</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.91</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.83</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.39</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.52</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.61</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.85</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT></TD>
        <TD align=right>
<FONT size=2 face="serif">125,315</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT></TD>
        <TD align=right>
<FONT size=2 face="serif">124,543</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT></TD>
        <TD align=right>
<FONT size=2 face="serif">125,054</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT></TD>
        <TD align=right>
<FONT size=2 face="serif">119,778</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT></TD>
        <TD align=right>
<FONT size=2 face="serif">76,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT></TD>
        <TD align=right>
<FONT size=2 face="serif">76,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT></TD>
        <TD align=right>
<FONT size=2 face="serif">66,137</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT></TD>
        <TD align=right>
<FONT size=2 face="serif">64,404</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<div align="center"><FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">62</FONT></P>

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<A name="page_128"></A>




<A name="page_129"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=right>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=right><div align="center"><B><FONT size=1 face="serif">For the period</FONT></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="5" align=left>
      <div align="center"><B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=left><div align="center"><B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD colspan=4>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=center valign="bottom"><div align="center"><B><FONT size=1 face="serif">through</FONT></B> </div></TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2004</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2003</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=left>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2002</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.52</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.90</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT>
        </TD>
        <TD align=left>
<SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.88</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.43</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.68</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.96</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.61</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=2 face="serif">Net asset value, end of period</FONT></TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=right><FONT size=2 face="serif"> 15.53</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$ </FONT></div></TD>
  <TD align=right><FONT size=2 face="serif">14.52</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><FONT size=2 face="serif">14.90</FONT> </TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD colspan=2><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of  period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT>
        </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.17</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
        <TD align=right><font size=2 face="serif">13.55</font> </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.92 </FONT></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD colspan=2>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11.82</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.53</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.62</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.53</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.59</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.49</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">50,422</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">49,915</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">46,792</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>
      </div></TD>
        <TD align=left><font size=2 face="serif">%</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">51,383</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">48,042</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">49,284</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">29,775</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,775</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,775</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">68,147</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,340</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,383</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<div align="center"><FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">63</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_130"></A>




<A name="page_131"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>       <div align="center"><B><FONT size=1 face="serif">For the period</FONT></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="5" align=left>
      <div align="center"><B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>     <div align="center"><B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD colspan=4>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2">          <div align="center"><B><FONT size=1 face="serif">through</FONT></B> </div></TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2004</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2003</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2002</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT>
    </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.36</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.76</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT>
        </TD>
        <TD align=left><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.07</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.45</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.53</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.74</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.86</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.84</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.86</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.88</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=2 face="serif">Net asset</FONT> <FONT size=2 face="serif"> value, end of period </FONT></TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=right><FONT size=2 face="serif"> 15.24</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=right><FONT size=2 face="serif"> 14.36</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><FONT size=2 face="serif">14.76</FONT> </TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market  price, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT>
    </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.99</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.90</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.95 </FONT></TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.31</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.32</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.19</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.63</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.64</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.51</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.76</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">30,350</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">30,069</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">28,153</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">30,715</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">28,923</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,705</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">18,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">67,662</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,172</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,259</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<div align="center"><FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">64</FONT></P>

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<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=left><div align="center"><B><FONT size=1 face="serif">For the period</FONT></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="5" align=left>
      <div align="center"><B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=left><div align="center"><B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD colspan=4>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=left valign="bottom"><div align="center"><B><FONT size=1 face="serif">through</FONT></B> </div></TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2004</FONT></SUP></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2003</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=left>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2002</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.77</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.58</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT>
        </TD>
        <TD align=left>
<SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.84</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.85</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.93</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.60</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=2 face="serif">Net asset value, end of period</FONT></TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=right><FONT size=2 face="serif"> 14.71</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=right><font size=2 face="serif"> 13.77</font></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><FONT size=2 face="serif">14.58</FONT></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD colspan=2><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price,  end of  period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right><div align="left"><FONT size=2 face="serif"> $</FONT>
    </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.91</FONT></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
        <TD align=right><FONT size=2 face="serif">13.64</FONT></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.65 </FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9.32</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.75</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.63</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.62</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.29</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.49</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.60</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.45</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.44</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.34</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.84</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">33,214</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">32,652</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31,611</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">33,384</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31,226</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">32,981</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">20,225</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,225</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,225</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">66,266</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">63,602</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,771</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each year
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<div align="center"><FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">65</FONT></P>

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<A name="page_135"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=center>
      <div align="center"><B><FONT size=1 face="serif">For the period</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=left>
      <div align="center"><B><FONT size=1 face="serif">October 31, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=right>
      <div align="center"><B><FONT size=1 face="serif">Year Ended</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=left><div align="center"><B><FONT size=1 face="serif">through</FONT></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=left>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2004</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=right>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2003</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.45</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT>
        </TD>
        <TD align=left><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.69</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.75</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.63</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends to common shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=2 face="serif">Net asset value, end of period</FONT></TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=right><FONT size=2 face="serif">14.18</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><FONT size=2 face="serif">13.45</FONT></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price,  end of  period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$ </FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif"> 14.08</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif"> 13.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(7.13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.91</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.27</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.22</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.35</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.52</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.55</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.62</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.80</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">91,808</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">90,967</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">80</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">91,260</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">86,431</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">56,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">56,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">65,744</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">63,587</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This
information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<div align="center"><FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">66</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_136"></A>




<A name="page_137"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=left><div align="center"><B><FONT size=1 face="serif">For the period</FONT></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="5" align=left>
      <div align="center"><B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
      </div></TD>
        <TD align=left><div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=left><div align="center"><B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD colspan=4>
<HR align="center" size=1 noshade>
        </TD>
        <TD><div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=left valign="bottom"><div align="center"><B><FONT size=1 face="serif">through</FONT></B> </div></TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2004</FONT></SUP></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2003</FONT></SUP></B>
      </div></TD>
        <TD align=left><div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=2 align=left>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2002</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.83</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT>
        </TD>
        <TD align=left><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.81</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.71</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.62</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.87</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.31</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.85</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=2 face="serif">Net asset value, end of period</FONT></TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=right><FONT size=2 face="serif"> 15.09</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=right><FONT size=2 face="serif"> 14.15</FONT> </TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><FONT size=2 face="serif">14.83</FONT> </TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price,  end of  period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right><div align="left"><FONT size=2 face="serif"> $</FONT>
    </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.97</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.35</FONT></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif"> $</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.50 </FONT></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11.83</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.78</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.60</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.60</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.24</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.48</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.62</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.74</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">40,396</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">40,072</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">38,183</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">40,757</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">38,207</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">40,062</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">24,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">24,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">67,108</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">64,473</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,390</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<div align="center"><FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">67</FONT></P>

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<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left><div align="center"><B><FONT size=1 face="serif">For the period</FONT></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="5" align=left>
      <div align="center"><B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left><div align="center"><B><FONT size=1 face="serif">July 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD colspan=4>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left valign="bottom"><div align="center"><B><FONT size=1 face="serif">through</FONT></B> </div></TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2004</FONT></SUP></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2003</FONT></SUP></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2002</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.36</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.47</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT>
        </TD>
        <TD align=left><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.04</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.98</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.79</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.17</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends to common shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=2 face="serif">Net asset value, end of period</FONT></TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$ </FONT></div></TD>
  <TD align=right><FONT size=2 face="serif"> 14.16</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$ </FONT></div></TD>
  <TD align=right><FONT size=2 face="serif"> 13.36</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><div align="left"><FONT size=2 face="serif">$ </FONT></div></TD>
  <TD align=right><FONT size=2 face="serif">14.47</FONT> </TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of  period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT>
    </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.70</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right><div align="left"><FONT size=2 face="serif"> $</FONT>&nbsp;
    </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.10 </FONT></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11.82</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(6.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.43</FONT></TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.43</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.32</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.27</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.58</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.77</FONT>
        </TD>

        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.59</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.68</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.77</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.27</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.77</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">70,018</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">69,863</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">64,673</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">40</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">69,903</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">65,953</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">70,276</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">44,650</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">44,650</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">64,144</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">61,930</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>___________</P>
<P><SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Trust.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">68</FONT></P>

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<A name="page_140"></A>




<A name="page_141"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=left><div align="center"><B><FONT size=1 face="serif">For the period</FONT></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="5" align=left>
      <div align="center"><B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=left><div align="center"><B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD colspan=4>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD colspan=2 align=left valign="bottom"><div align="center"><B><FONT size=1 face="serif">through</FONT></B> </div></TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2004</FONT></SUP></B>
      </div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><SUP><FONT size=2 face="serif">2003</FONT></SUP></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=left>
      <div align="center"><B><FONT size=1 face="serif">August 31, 2002</FONT></B>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.46</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT>
        </TD>
        <TD align=left><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.27</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.86</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.44</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.65</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.88</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.55</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.89</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.85</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=2 face="serif">Net asset  value, end of period</FONT></TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=right><FONT size=2 face="serif"> 15.47</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=right><FONT size=2 face="serif"> 14.46</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">$</FONT></TD>
  <TD align=right><FONT size=2 face="serif">14.90 </FONT></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD><HR noshade size=2>
  </TD>
  <TD><HR noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market  price, end of  period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif"> $</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">15.34</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$ </FONT></div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12.79</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.81</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.17</FONT>

        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.73</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.64</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.70</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.47</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.53</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.68</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.70</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.16</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">23,273</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">22,896</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,321</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">23,527</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">21,944</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,545</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13,525</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13,525</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,525</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">68,490</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=2 face="serif">65,562</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">$</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,674</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of
each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment returns do not reflect brokerage
commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust&#146;s common shares.</FONT></P>
<div align="center"><FONT size=2 face="serif">See Notes to Financial Statements.</FONT><BR>
</div>
<P align="center">
<FONT size=2 face="serif">69</FONT></P>

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<A name="page_142"></A>




<A name="page_143"></A>

<B><FONT size=4 face="serif">NOTES TO FINANCIAL STATEMENTS</FONT></B>
<HR noshade size=1>
<BR>
<P>
<B><FONT face="serif">Note 1. Organization &amp; Accounting Policies</FONT></B></P>
<P><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (&#147;Insured Municipal&#148;), BlackRock California Insured Municipal Income </FONT><B></B><FONT size=2 face="serif">Trust (&#147;California Insured&#148;), BlackRock Florida Insured Municipal Income Trust (&#147;Florida Insured&#148;), BlackRock New York Insured Municipal Income Trust (&#147;New York Insured&#148;)
  (collectively the &#147;Insured Trusts&#148;), BlackRock Municipal Bond Trust (&#147;Municipal Bond&#148;), BlackRock California Municipal Bond Trust (&#147;California Bond&#148;), BlackRock Florida Municipal Bond Trust (&#147;Florida Bond&#148;),
  BlackRock Maryland Municipal Bond Trust (&#147;Maryland Bond&#148;), BlackRock New Jersey Municipal Bond Trust (&#147;New Jersey Bond&#148;), BlackRock New York Municipal Bond Trust (&#147;New York Bond&#148;), BlackRock Virginia Municipal Bond
  Trust (&#147;Virginia Bond&#148;) (collectively the &#147;Bond Trusts&#148;), BlackRock Municipal Income Trust II (&#147;Municipal Income II&#148;), BlackRock California Municipal Income Trust II (&#147;California Income II&#148;) and BlackRock New
  York Municipal Income Trust II (&#147;New York Income II&#148;) (collectively the &#147;Income II Trusts&#148;) (collectively the &#147;Trusts&#148;) are organized as Delaware statutory trusts. The Insured Trusts were organized on August 19, 2002.
  They had no transactions until October 19, 2002, when each of the Insured Trusts sold 8,028 common shares for $115,001 to BlackRock Funding, Inc. Investment operations for the Insured Trusts commenced on October 31, 2002. Insured Municipal,
  Municipal Bond and Municipal Income II are registered as diversified closed-end management investment companies under the Investment Company Act of 1940, as amended. California Insured, California Bond, California Income II, Florida Insured, Florida
  Bond, Maryland Bond, New Jersey Bond, New York Insured, New York Bond, New York Income II and Virginia Bond are registered as non-diversified closed-end management investment companies under the Investment Company Act of 1940, as amended.</FONT></P>
<P>
<FONT size=2 face="serif">The following is a summary of significant accounting policies followed by the Trusts.</FONT></P>
<P>
<B><FONT size=2 face="serif">Investments Valuation: </FONT></B><FONT size=2 face="serif">Municipal investments (including commitments to purchase such investments on a &#147;when-issued&#148; basis) are valued on the basis of prices provided by
dealers or pricing services selected under the supervision of each Trust&#146;s Board of Trustees or Board of Directors as the case may be (each, a &#147;Board&#148;). In determining the value of a particular investment, pricing services may use
certain information with respect to transactions in such investments, quotations from bond dealers, market transactions in comparable investments and various relationships between investments. A futures contract is valued at the last sale price as
of the close of the commodities exchange on which it trades. Short-term securities may be valued at amortized cost. Investments in other investment companies are valued at net asset value. Any investments or other assets for which such current
market quotations are not readily available are valued at fair value as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust&#146;s Board.</FONT></P>
<P>
<B><FONT size=2 face="serif">Investments Transactions and Investment Income: </FONT></B><FONT size=2 face="serif">Investments transactions are recorded on trade date. Realized and unrealized gains and losses are calculated on the identified cost
basis. Each Trust also records interest income on an accrual basis and amortizes premium and/or accretes discount on securities purchased using the interest method.</FONT></P>
<P>
<B><FONT size=2 face="serif">Financial Futures Contracts: </FONT></B><FONT size=2 face="serif">A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits
are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by &#147;marking-to-market&#148; on
a daily basis to reflect the market value of the contract at the end of each day&#146;s trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, the Trust
records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust&#146;s basis in the contract. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Financial futures contracts, when used by the Trusts, help in maintaining a targeted duration. Futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In
the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, the Trusts may attempt to manage the duration of positions so that changes in interest
rates do not change the duration of the portfolio unexpectedly.</FONT></P>
<P>
<B><FONT size=2 face="serif">Segregation: </FONT></B><FONT size=2 face="serif">In cases in which the Investment Company Act of 1940, as amended, and the interpretive positions of the Securities and Exchange Commission (&#147;SEC&#148;) require that
each Trust segregate assets in connection with certain investments (e.g., when-issued securities, reverse repurchase agreements or futures contracts), each Trust will, consistent with certain interpretive letters issued by the SEC, designate on its
books and records cash or other liquid debt securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.</FONT></P>
<P>
<B><FONT size=2 face="serif">Federal Income Taxes: </FONT></B><FONT size=2 face="serif">It is each Trust&#146;s intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient net
income to shareholders. For this reason and because substantially all of the gross income of each Trust consists of tax-exempt interest, no Federal income tax provisions are required.</FONT></P>
<P>
<B><FONT size=2 face="serif">Dividends and Distributions: </FONT></B><FONT size=2 face="serif">Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains
and other sources, if necessary. Net long-term capital gains, if any, in excess of loss car-ryforwards may be distributed annually. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions
are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. Dividends and distributions to preferred shareholders are accrued and determined as described in
Note 4. </FONT></P>
<P><B><FONT size=2 face="serif">Estimates: </FONT></B><FONT size=2 face="serif">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to
  make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the
  reporting period. Actual results could differ from these estimates.</FONT></P>
<P>
<B><FONT size=2 face="serif">Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: </FONT></B><FONT size=2 face="serif">Under the deferred compensation plan approved by the Trust&#146;s Board, non-interested
Trustees/Directors (&#147;Trustees&#148;) are required to defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other
BlackRock closed-end trusts selected by the Trustees. This has the same economic effect for the Trustees as if the Trustees had invested the deferred amounts in such Trusts.</FONT></P>
<P align="center">
<FONT size=2 face="serif">70</FONT></P>

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<A name="page_144"></A>




<A name="page_145"></A>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust. Each Trust may, however, elect to invest in
common shares of those Trusts selected by the Trustees in order to match its deferred compensation obligations.</FONT></P>
<P>
<B><FONT size=2 face="serif">Reclassification of Capital Accounts: </FONT></B><FONT size=2 face="serif">In order to present undistributed (distribution in excess of) net investment income (&#147;UNII&#148;) and accumulated net realized gain
(&#147;Accumulated Gain&#148;) more closely to its tax character, the following accounts for each Trust were increased (decreased):</FONT></P>
<TABLE width="50%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=38% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="3" align=left>
      <div align="center"><B><FONT size=2 face="serif">UNII</FONT></B>
      </div></TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD colspan="3" align=left>
      <div align="center"><B><FONT size=2 face="serif">Accumulated Gain</FONT></B>
      </div></TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD width="7%">
<HR noshade size=1>
        </TD>
        <TD width="7%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(845</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">845</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,505</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,505</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(340</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">340</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(42</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">42</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">103</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(103</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(32</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">32</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(215</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">215</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">99</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(8</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(103</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">103</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,040</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,040</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(290</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">290</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>
<B><FONT face="serif">Note 2. Agreements </FONT></B></P>
<P><FONT size=2 face="serif">Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the &#147;Advisor&#148;), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial
  Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to each Trust. BlackRock, Inc. is an indirect majority owned subsidiary of The PNC Financial Services Group, Inc. The investment management agreement covers both
  investment advisory and administration services.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each Trust&#146;s investment advisory fee paid to the Advisor is computed weekly, accrued daily and payable monthly based on an annual rate, 0.55% for the Insured Trusts and Income II Trusts
and 0.65% for the Bond Trusts, of each Trust&#146;s average weekly managed assets. &#147;Managed assets&#148; means the total assets of a Trust (including any assets attributable to any preferred shares that may be outstanding) minus the sum of
accrued liabilities (other than debt representing financial leverage). The Advisor has voluntarily agreed to waive a portion of the investment advisory fee or other expenses of each Trust. With respect to the Insured Trusts the waiver, as a
percentage of managed assets, is as follows: 0.20% for the first 5 years of each Trust&#146;s operations, 0.15% in year 6, 0.10% in year 7, and 0.05% in year 8. With respect to the Bond Trusts the waiver, as a percentage of managed assets, is as
follows: 0.30% for the first 5 years of each Trust&#146;s operations, 0.25% in year 6, 0.20% in year 7, 0.15% in year 8, 0.10% in year 9 and 0.05% in year 10. With respect to the Income II Trusts the waiver, as a percentage of managed assets, is as
follows: 0.15% for the first 5 years of each Trust&#146;s operations, 0.10% in year 6 through year 7, 0.05% in year 8 through year 10.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the
Advisor, occupancy and certain clerical and accounting costs of each Trust. Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for certain operational support services provided to each Trust.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to the terms of each Trust&#146;s custody agreement, each Trust received earnings credits from its custodian for positive cash balances maintained, which are used to offset custody
fees.</FONT></P>
<P>
<B><FONT face="serif">Note 3. Portfolio Securities</FONT></B></P>
<P>
<FONT size=2 face="serif">Purchases and sales of investment securities, other than short-term investments and U.S. government securities, for the year ended August 31, 2004, were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=20% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Purchases</FONT></B>&nbsp;
      </div></TD>
        <TD width=1%>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Sales</FONT></B>&nbsp;
      </div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=17% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Purchases</FONT></B>&nbsp;
      </div></TD>
        <TD width=1%>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Sales</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">339,530,512</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">341,402,950</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,996,800</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">9,039,224</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">150,745,874</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">158,296,154</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,059,315</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">5,738,181</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">330,918,641</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">325,626,628</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,630,440</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">11,145,530</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,905,326</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,224,177</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,592,141</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">15,949,025</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,192,960</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,116,059</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,598,462</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">10,256,029</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">33,864,263</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">37,875,235</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,889,323</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">15,391,640</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,031,763</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,371,047</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,123,960</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">5,187,806</FONT>&nbsp;
      </div></TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">There were no purchases or sales of U.S. government securities.</FONT></P>
<P align="center">
<FONT size=2 face="serif">71</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_146"></A>




<A name="page_147"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=6 align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Details of open financial futures contracts at August 31, 2004 were as follows:</FONT>&nbsp;
      </div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=1% align=left>

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=6% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=20% align=left>&nbsp;

        </TD>
        <TD width=10% align=left>&nbsp;

        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=14% align=left>&nbsp;

        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=10% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>

          <div align="center"></div>

          <div align="center"><b><font size=2 face="serif">Value at</font></b></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Value at</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Number of</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Expiration</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Trade</FONT></B></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">August 31,</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="3" align=left>
      <div align="center"><B><FONT size=2 face="serif">Unrealized</FONT></B>
      </div></TD>
  </TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Contracts</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Type</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Date</FONT></B></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">2004</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="3" align=left>
      <div align="center"><B><FONT size=2 face="serif">Depreciation</FONT></B>
      </div></TD>
  </TR>
<TR>
        <TD width="20%">
<HR align="left" width="40" size=1 noshade>
    </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<B><FONT size=2 face="serif">Short Positions:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,683</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Dec &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">187,707,670</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">189,021,968</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,314,298</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">607</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Dec &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">67,700,078</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">68,173,691</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(473,613</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,406</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Dec &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">156,814,125</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">157,911,402</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,097,277</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">359</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Dec &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">40,039,978</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">40,320,192</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(280,214</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">216</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Dec &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">24,090,832</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">24,259,502</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(168,670</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">581</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Dec &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">64,799,981</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">65,253,568</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(453,587</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">507</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Dec &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">56,546,480</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">56,942,447</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(395,967</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">173</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Dec &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">19,295,081</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">19,430,066</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(134,985</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">107</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Dec &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">11,934,027</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">12,017,430</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(83,403</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">152</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Dec &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">16,952,931</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">17,071,502</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(118,571</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">381</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Dec &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">42,493,556</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">42,791,068</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(297,512</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">143</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Dec &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">15,949,357</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">16,060,694</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(111,337</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">255</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Dec &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">28,440,444</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">28,639,692</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(199,248</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="20%" align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">94</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Dec &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">10,483,892</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">10,557,377</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(73,485</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">At August 31, 2004, the total cost of securities for Federal Income tax purposes and the aggregate gross unrealized appreciation and depreciation for securities held by each Trust were as
follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Cost</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Appreciation</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Depreciation</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="3" align=left>
      <div align="center"><B><FONT size=2 face="serif">Net</FONT></B>
      </div></TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">588,046,425</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">28,161,379</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">796,693</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">27,364,686</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">232,918,116</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,196,481</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,677,596</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,518,885</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">507,145,985</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,245,259</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,903,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,342,059</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">119,223,258</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,032,559</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,292,647</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(260,088</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">75,027,777</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,345,670</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">399,089</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,946,581</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">177,882,011</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,023,851</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,189,422</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,834,429</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">196,369,826</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,211,030</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">891,655</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,319,375</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">76,393,937</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,220,646</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">30,532</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,190,114</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">45,857,219</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,199,337</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">93,689</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,105,648</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">51,802,395</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,048,633</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,179,662</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">868,971</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">144,672,488</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,534,879</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,410,312</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,124,567</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">61,660,652</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,970,928</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">493,208</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,477,720</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">111,963,390</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,715,452</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">806,585</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,908,867</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">34,686,295</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,788,990</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,788,990</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">For Federal income tax purposes, the following Trusts had capital loss carryforwards as of their last respective tax year end (the Bond Trusts&#146; have a tax year end of October 31st and the
Income II Trusts&#146; have a tax year end of June 30th). These amounts may be used to offset future realized capital gains, if any:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=21% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Capital Loss</FONT></B>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=left>&nbsp;

        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=19% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Capital Loss</FONT></B>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust </FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Carryforward</FONT></B><B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Expires </FONT></B>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust </FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Carryforward </FONT></B><B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Expires </FONT></B>
      </div></TD>
</TR>
<TR valign="bottom">
  <TD align=left><HR align="left" width="40" size=1 noshade></TD>
  <TD>&nbsp;</TD>
  <TD width=5% align=left><HR noshade size=1></TD>
  <TD width=12% align=center><HR noshade size=1></TD>
  <TD>&nbsp;</TD>
  <TD align=right><HR noshade size=1></TD>
  <TD>&nbsp;</TD>
  <TD align=left><HR align="left" width="40" size=1 noshade></TD>
  <TD>&nbsp;</TD>
  <TD width=4% align=left><HR noshade size=1></TD>
  <TD width=13% align=center><HR noshade size=1></TD>
  <TD>&nbsp;</TD>
  <TD align=right><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
  <TD align=left><font size=2 face="serif">Municipal Bond</font>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=center><div align="right"><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif"> 338,279</FONT></div></TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="center"><font size=2 face="serif">2011 &nbsp;</font></div></TD>
  <TD>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=center><div align="right"><FONT size=2 face="serif"> 4,564&nbsp; </FONT><B><FONT size=2 face="serif"></FONT></B></div></TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="center"><FONT size=2 face="serif">2011</FONT>&nbsp;</div></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right><HR align="left" size=2 noshade></TD>
  <TD align=center><HR align="right" size=2 noshade></TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="center"></div></TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right><HR align="left" size=2 noshade></TD>
  <TD align=center><HR align="right" size=2 noshade></TD>
  <TD>&nbsp;</TD>
  <TD align=right><div align="center"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">1,338,302</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">2011</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">142,736</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">2011</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
  <TD align=left valign="bottom">&nbsp;</TD>
  <TD valign="bottom">&nbsp;</TD>
  <TD align=right valign="bottom"><div align="left"></div></TD>
  <TD align=center valign="bottom"><div align="right"><FONT size=2 face="serif"> 5,200,107</FONT>&nbsp; </div></TD>
  <TD valign="bottom">&nbsp;</TD>
  <TD align=right valign="bottom"><div align="center"><FONT size=2 face="serif">2012</FONT>&nbsp; </div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR align="right" size=2 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
</TR>
<TR valign="bottom">
  <TD></TD>
  <TD></TD>
  <TD><HR noshade size=1></TD>
  <TD><HR noshade size=1></TD>
  <TD></TD>
  <TD><div align="center"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">$</FONT>
      </div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">722,685</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">2012</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
  <TD align=left valign="bottom">&nbsp;</TD>
  <TD valign="bottom">&nbsp;</TD>
  <TD align=right valign="bottom"><div align="left"><FONT size=2 face="serif">$</FONT></div></TD>
  <TD align=center valign="bottom"><div align="right"><FONT size=2 face="serif">6,538,409</FONT>&nbsp;</div></TD>
  <TD valign="bottom">&nbsp;</TD>
  <TD align=right valign="bottom"><div align="center"></div></TD>
  <TD></TD>
  <TD></TD>
  <TD></TD>
  <TD><div align="left">
    <hr align="left" size=2 noshade>
  </div></TD>
  <TD><hr align="right" size=2 noshade></TD>
  <TD></TD>
  <TD><div align="center"></div></TD>
</TR>
<TR>
  <TD align=left valign="bottom">&nbsp;</TD>
  <TD valign="bottom">&nbsp;</TD>
  <TD align=right valign="bottom"><hr align="left" size=2 noshade></TD>
  <TD align=center valign="bottom"><hr align="right" size=2 noshade></TD>
  <TD valign="bottom">&nbsp;</TD>
  <TD align=right valign="bottom"><div align="center"></div></TD>
  <TD></TD>
  <TD align=left valign="bottom"><FONT size=2 face="serif">Virginia Bond</FONT>&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  <TD align=right valign="bottom"><div align="left"><FONT size=2 face="serif">$</FONT> </div></TD>
  <TD align=center valign="bottom"><div align="right"><FONT size=2 face="serif">48,573</FONT>&nbsp; </div></TD>
  <TD valign="bottom">&nbsp;</TD>
  <TD align=right valign="bottom"><div align="center"><FONT size=2 face="serif">2011</FONT>&nbsp; </div></TD>
</TR>
<TR>
  <TD align=left valign="bottom">&nbsp;</TD>
  <TD valign="bottom">&nbsp;</TD>
  <TD align=right valign="bottom">&nbsp;</TD>
  <TD align=center valign="bottom">&nbsp;</TD>
  <TD valign="bottom">&nbsp;</TD>
  <TD align=right valign="bottom"><div align="center"></div></TD>
  <TD></TD>
  <TD></TD>
  <TD></TD>
  <TD><div align="left">
    <hr align="left" size=2 noshade>
  </div></TD>
  <TD><hr noshade size=2></TD>
  <TD></TD>
  <TD><div align="center"></div></TD>
</TR>
<TR>
  <TD align=left valign="bottom"><FONT size=2 face="serif">California Income II</FONT>&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  <TD align=right valign="bottom"><div align="left"><FONT size=2 face="serif">$</FONT> </div></TD>
  <TD align=center valign="bottom"><div align="right"><FONT size=2 face="serif">1,454,313</FONT>&nbsp; </div></TD>
  <TD valign="bottom">&nbsp;</TD>
  <TD align=right valign="bottom"><div align="center"><FONT size=2 face="serif">2011</FONT>&nbsp; </div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="center"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=left><div align="left"></div></TD>
        <TD align=center><div align="right"><FONT size=2 face="serif">1,163,822</FONT>&nbsp; </div></TD>
        <TD>&nbsp;</TD>
        <TD align=right><div align="center"><FONT size=2 face="serif">2012</FONT>&nbsp; </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD align=center>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR align="left" size=1 noshade>
    </TD>
        <TD><HR align="right" size=1 noshade>
    </TD>
        <TD></TD>
        <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right><div align="left"><FONT size=2 face="serif">$</FONT> </div></TD>
        <TD align=center><div align="right"><FONT size=2 face="serif">2,618,135</FONT>&nbsp; </div></TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=2>
    </TD>
        <TD><HR noshade size=2>
    </TD>
        <TD></TD>
        <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD align=center>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD></TD>
        <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Accordingly, no capital gain distributions are expected to be paid to shareholders of a Trust until that Trust has net realized capital gains in excess of its capital loss carryforward
amounts.</FONT></P>
<P align="center">
<FONT size=2 face="serif">72</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_148"></A>




<A name="page_149"></A>

<P>
<B><FONT face="serif">Note 4. Distributions to Shareholders</FONT></B></P>
<P>
<FONT size=2 face="serif">The tax character of distributions paid during the year ended August 31, 2004 and the period ended August 31, 2003, were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=29% align=left>&nbsp;

        </TD>
        <TD width=11%>&nbsp;
        </TD>
        <TD colspan="9" align=left>
      <div align="center"><B><FONT size=2 face="serif">Year </FONT></B><B><FONT size=2 face="serif">ended August 31, 2004</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan="9">
<HR noshade size=1>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Tax-exempt</FONT></B>&nbsp;
      </div></TD>
        <TD width=4%>
          <div align="center"></div></TD>
        <TD width=12% align=right>
      <div align="center"><B><FONT size=2 face="serif">Ordinary</FONT></B>&nbsp;
      </div></TD>
        <TD width=3%>
          <div align="center"></div></TD>
        <TD width=13% align=center>
      <div align="center"><B><FONT size=2 face="serif">Long-term</FONT></B>&nbsp;
      </div></TD>
        <TD width=3%>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Total</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Distributions Paid </FONT></B><B><FONT size=2 face="serif">From:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Income</FONT></B>&nbsp;  </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Capital </FONT></B><B><FONT size=2 face="serif">Gains</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Distributions</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR>
        <TD>
      <HR align="left" width="150" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD width="3%">
<HR noshade size=1>
        </TD>
        <TD width="9%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="1%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,673,933</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">26,673,933</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,334,330</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">11,334,330</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,882,207</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">24,882,207</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,137,946</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">73,705</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">5,211,651</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,444,704</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">233,112</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,008</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">3,686,824</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,419,618</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">8,419,618</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,495,387</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">719,040</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">9,214,427</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,358,938</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">80,766</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">3,439,704</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,887,652</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">1,887,652</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,304,183</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">121,320</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">2,425,503</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,272,601</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">6,272,601</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,693,108</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">2,693,108</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,074,526</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">5,074,526</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,430,624</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">1,430,624</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD colspan=11>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="9" align=left>
      <div align="center"><B><FONT size=2 face="serif">Period </FONT></B><B><FONT size=2 face="serif">ended August 31, 2003</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan="9">
<HR noshade size=1>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>       <div align="center"><B><FONT size=2 face="serif">Tax-exempt</FONT></B>&nbsp; </div></TD>
        <TD><div align="center"></div></TD>
        <TD align=right><div align="center"><B><FONT size=2 face="serif">Ordinary</FONT></B>&nbsp; </div></TD>
        <TD><div align="center"></div></TD>
        <TD align=center><div align="center"><B><FONT size=2 face="serif">Long-term</FONT></B>&nbsp; </div></TD>
        <TD><div align="center"></div></TD>
        <TD align=left><div align="center"></div></TD>
        <TD align=center><div align="center"><B><FONT size=2 face="serif">Total</FONT></B>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <B><FONT size=2 face="serif">Distributions Paid </FONT></B><B><FONT size=2 face="serif">From:</FONT></B>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>       <div align="center"><B><FONT size=2 face="serif">Income</FONT></B>&nbsp; </div></TD>
        <TD><div align="center"></div></TD>
        <TD align=right><div align="center"><B><FONT size=2 face="serif">Income</FONT></B>&nbsp; </div></TD>
        <TD><div align="center"></div></TD>
        <TD align=center><div align="center"><B><FONT size=2 face="serif">Capital </FONT></B><B><FONT size=2 face="serif">Gains</FONT></B>&nbsp; </div></TD>
        <TD><div align="center"></div></TD>
        <TD align=left><div align="center"></div></TD>
        <TD align=center><div align="center"><B><FONT size=2 face="serif">Distributions</FONT></B>&nbsp; </div></TD>
</TR>
<TR>
        <TD>
<HR align="left" width="150" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,038,910</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">20,038,910</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,285,924</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">597,573</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">11,883,490</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">25,082,459</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">25,082,459</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,860,751</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">3,860,751</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,437,724</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">314,651</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">3,752,375</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,464,717</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">8,464,717</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,444,887</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">6,444,887</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,332,440</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">211,968</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">3,544,408</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,889,456</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">83,572</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">1,973,020</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,305,459</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">159,954</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">2,465,413</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,747,699</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">4,747,699</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,725,834</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">176,602</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">2,902,435</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,138,475</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">5,138,475</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,410,553</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">174,265</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">1,584,783</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD colspan=11>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=11 align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">As of August 31, 2004, the components of distributable earnings on a tax basis were as follows:</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=11>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Undistributed</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Undistributed</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Undistributed</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Tax-exempt</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Ordinary</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Long-term</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Unrealized Net</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Gains</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Appreciation</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,691,837</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">27,334,835</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,073,085</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">8,504,578</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,971,844</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">15,314,103</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">919,485</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,234,685</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">2,940,403</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">770,059</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">1,826,863</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,317,127</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">2,311,286</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,182,093</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">4,185,326</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">712,563</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">2,099,827</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">795,712</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">862,400</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">870,642</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">1,120,304</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">887,422</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">2,472,552</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">316,284</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">1,903,809</FONT>&nbsp;
    </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">621,632</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">1,784,180</FONT>&nbsp;
    </div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">73</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_150"></A>




<A name="page_151"></A>

<P>
<B><FONT face="serif">Note 5. Capital</FONT></B></P>
<P>
<FONT size=2 face="serif">There are an unlimited number of $0.001 par value common shares of beneficial interest authorized for each Trust. Each Trust may classify or reclassify any unissued common shares into one or more series of Auction Market Preferred Shares (&#147;preferred shares&#148;). At August 31, 2004, the shares outstanding and the shares owned by affiliates of the Advisor of each Trust were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=20% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=13% align=center>
      <div align="center"><B><FONT size=2 face="serif">Common</FONT></B>&nbsp;
      </div></TD>
        <TD width=1%>
          <div align="center"></div></TD>
        <TD width=14% align=left>

          <div align="center"></div></TD>
        <TD width=1%>
          <div align="center"></div></TD>
        <TD width=19% align=left>

          <div align="center"></div></TD>
        <TD width=1%>
          <div align="center"></div></TD>
        <TD width=13% align=right>
      <div align="center"><B><FONT size=2 face="serif">Common</FONT></B>&nbsp;
      </div></TD>
        <TD width=1%>
          <div align="center"></div></TD>
        <TD width=15% align=left>

          <div align="center"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Common</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>

          <div align="center"></div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Common</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Outstanding</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Shares Owned</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>
      <div align="left"><B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
    </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Outstanding</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Shares Owned</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,149,334</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,309,483</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,123,055</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,015,154</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,781,072</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,269,366</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,268,785</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,436,539</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,351,150</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,700,991</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Municipal II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,984,696</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,935,268</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,718,823</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,521,015</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
      </div></TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">During the year ended August 31, 2004, Insured Municipal, Municipal Income II, California Insured, California Income II, Maryland Bond, New Jersey Bond, New York Insured and Virginia Bond
issued additional shares under their dividend reinvestment plans of 23,876, 7,680, 4,760, 10,283, 1,033, 1,848, 12,431 and 3,974, respectively. Transactions in common shares of beneficial interest for the period ended August 31, 2003, were as
follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=center>&nbsp;
</TD>
    <TD colspan=5 align=center><B><FONT size=2 face="serif">Shares from</FONT></B> </TD>
    <TD width="3%" align=center>&nbsp;</TD>
    <TD width="17%" align=center>&nbsp;</TD>
</TR>
<TR>
        <TD>&nbsp;
        </TD>
    <TD colspan=5><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD width="28%" align=left>&nbsp;

        </TD>
        <TD width="14%" align=center>
<B><FONT size=2 face="serif">Initial</FONT></B>&nbsp;
        </TD>
        <TD width="3%">&nbsp;
        </TD>
        <TD width="19%" align=center><b><font size=2 face="serif">Underwriters&#146; Exercising</font></b>

        </TD>
        <TD width="3%">&nbsp;
        </TD>
        <TD width="13%" align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Public Offering</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center><b><font size=2 face="serif">the </font></b><b><font size=2 face="serif">Over-allotment</font></b>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Reinvestment</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Net Increase in</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">October </FONT></B><B><FONT size=2 face="serif">31, 2002</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center><B><FONT size=2 face="serif"> Option</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">of Dividends</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Shares </FONT></B><B><FONT size=2 face="serif">Outstanding</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,008,028</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,000,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">117,430</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,125,458</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,096</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,096</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">300,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,364</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">315,364</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,008,028</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">250,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,997</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,264,025</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">840</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">840</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">150,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,385</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">166,385</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,008,028</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">700,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,795</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,718,823</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,232</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,232</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,240</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,240</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,212</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,212</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,008,028</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">400,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,080</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,424,108</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">75,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,240</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">77,240</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,017</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,017</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Offering costs incurred in connection with the Trusts&#146; offering of common shares have been charged against the proceeds from the initial common share offering of the common shares were as
follows:</FONT></P>
<TABLE width="50%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=51% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=20%>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Offering Costs</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="18%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">765,000</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">142,500</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">246,000</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">177,000</FONT>&nbsp;
      </div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">74</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_152"></A>




<A name="page_153"></A>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">As of August 31, 2004, each Trust had the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value of $25,000 per share plus
any accumulated unpaid dividends.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=26% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=10% align=right>
      <div align="center"><B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
      </div></TD>
        <TD width=1%>
          <div align="center"></div></TD>
        <TD width=11% align=left>
      <div align="center"><B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
      </div></TD>
        <TD width=4%>
          <div align="center"></div></TD>
        <TD width=23% align=left>
      <div align="left"><B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
    </div></TD>
        <TD width=1%>
          <div align="center"></div></TD>
        <TD width=10% align=center>
      <div align="center"><B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
      </div></TD>
        <TD width=1%>
          <div align="center"></div></TD>
        <TD width=11% align=right>
      <div align="center"><B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">M7</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>
      <div align="center"><FONT size=2 face="serif">3,053</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,439</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">R7</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>
      <div align="center"><FONT size=2 face="serif">3,053</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,439</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">F7</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>
      <div align="center"><FONT size=2 face="serif">3,053</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,040</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">T7</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>
      <div align="center"><FONT size=2 face="serif">1,810</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,191</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">R7</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>
      <div align="center"><FONT size=2 face="serif">1,810</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">720</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">M7</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>
      <div align="center"><FONT size=2 face="serif">2,055</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">809</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">T7</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>
      <div align="center"><FONT size=2 face="serif">2,056</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,240</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">W7</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>
      <div align="center"><FONT size=2 face="serif">2,055</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">968</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">R7</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>
      <div align="center"><FONT size=2 face="serif">2,056</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,786</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">F7</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>
      <div align="center"><FONT size=2 face="serif">1,860</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">541</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="center"><FONT size=2 face="serif">F7</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=left>
      <div align="center"><FONT size=2 face="serif">1,199</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Underwriting discounts and offering costs incurred in connection with the preferred share offerings for the year ended August 31, 2004, and the period ended August 31, 2003, have been charged
to paid-in capital in excess of par of the common shares as follows.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=23% align=left>&nbsp;

        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Underwriting</FONT></B>&nbsp;
      </div></TD>
        <TD width=3%>
          <div align="center"></div></TD>
        <TD colspan="3" align=left>
      <div align="center"><B><FONT size=2 face="serif">Offering</FONT></B>
      </div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=21% align=left>&nbsp;

        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Underwriting</FONT></B>&nbsp;
      </div></TD>
        <TD width=3%>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Offering</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Discount</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="3" align=left>
      <div align="center"><B><FONT size=2 face="serif">Cost</FONT></B>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Discount</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Cost</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD width="4%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
        <TD width="7%">
<HR noshade size=1>
        </TD>
        <TD width="4%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD width="4%">
<HR noshade size=1>
        </TD>
        <TD width="7%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="2%">
<HR noshade size=1>
        </TD>
        <TD width="9%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,289,750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">369,482</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD align=left><div align="right"><FONT size=2 face="serif">$</FONT>
    </div></TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">28,492</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(128,162</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">50,675</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,055,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">239,168</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">48,427</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">465,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">144,518</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">560,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">151,970</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,849</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">37,459</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">719,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">129,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">446,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">120,782</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">760,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">184,848</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">58,033</FONT>&nbsp;
      </div></TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Dividends on seven-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. The dividend ranges on the preferred shares for each of the
Trusts for the year ended August 31, 2004, were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=27% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Low</FONT></B>
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">High</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=25% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Low</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <div align="center"><B><FONT size=2 face="serif">High</FONT></B>
      </div></TD>
  </TR>
<TR>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD width="7%">
<HR noshade size=1>
        </TD>
        <TD width="4%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="7%">
<HR noshade size=1>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD width="6%">
<HR noshade size=1>
        </TD>
        <TD width="3%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
        <TD width="3%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.60</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.45</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.40</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.43</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.60</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.30</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.45</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.07</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.45</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.93</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.45</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.62</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.45</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.97</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">A Trust may not declare dividends or make other distributions on common shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with
respect to the outstanding preferred shares would be less than 200%.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The preferred shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at $25,000 per share plus any accumulated unpaid dividends whether or not
declared. The preferred shares are also subject to mandatory redemption at $25,000 per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a
Trust, as set forth in each Trust&#146;s Declaration of Trust, are not satisfied.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The holders of preferred shares have voting rights equal to the holders of common shares (one vote per share) and will vote together with holders of common shares as a single class. However,
holders of preferred shares, voting as a separate class, are also entitled to elect two Trustees for each Trust. In addition, the Investment Company Act of 1940, as amended, requires that along with approval by shareholders that might otherwise be
required, the approval of the holders of a majority of any outstanding preferred shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the preferred shares, (b) change a
Trust&#146;s subclassification as a closed-end investment company or change its fundamental investment restrictions and (c) change its business so as to cease to be an investment company.</FONT></P>
<P align="center">
<FONT size=2 face="serif">75</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_154"></A>




<A name="page_155"></A>

<P>
<B><FONT face="serif">Note 6. Dividends</FONT></B></P>
<P>
<FONT size=2 face="serif">Subsequent to August 31, 2004, the Board of each Trust declared dividends from undistributed earnings per common share payable October 1, 2004, to shareholders of record on September 13, 2004. The per share com</FONT><FONT size=2 face="serif">mon dividends declared were as follows:</FONT></P>
<TABLE width="90%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Common Dividend</FONT></B>&nbsp;
      </div></TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=23% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Common Dividend</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Per Share</FONT></B>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Per Share</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD width="9%">
<HR noshade size=1>
        </TD>
        <TD width="14%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD width="8%">
<HR align="center" size=1 noshade>
        </TD>
        <TD width="12%">
<HR align="center" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">0.078125</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">0.077808</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">0.086375</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">0.071350</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">0.083750</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">0.078582</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">0.075000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">0.075000</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">0.079656</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">0.077099</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">0.081250</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">0.078750</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">0.075000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">0.072428</FONT>&nbsp;
      </div></TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The dividends declared on preferred shares for the period September 1, 2004 to September 30, 2004, for each of the Trusts were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=9% align=left>

          <div align="center"></div></TD>
        <TD width=1%>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Dividends</FONT></B>&nbsp;
      </div></TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=9% align=left>

          <div align="center"></div></TD>
        <TD width=1%>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Dividends</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Declared</FONT></B>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan="2" align=left>
      <div align="center"><B><FONT size=2 face="serif">Declared</FONT></B>&nbsp;
      </div></TD>
  </TR>
<TR>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="4%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="5%">
<HR noshade size=1>
        </TD>
        <TD width="9%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">71,288</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">$</FONT>
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">32,493</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">85,728</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">44,336</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">67,258</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">68,187</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">52,743</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">35,623</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">54,680</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">21,254</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">50,717</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">13,931</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">65,381</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">53,290</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">60,787</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">28,208</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">64,641</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">40,417</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">32,476</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">14,629</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">19,879</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">76</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_156"></A>




<A name="page_157"></A>

<P align="center">
<B><FONT face="serif">REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></B></P>
<HR noshade size=1>
<FONT size=2 face="serif">To the Trustees and Shareholders of:</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock Municipal Bond Trust</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock California Municipal Bond Trust</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock Florida Municipal Bond Trust</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock Maryland Municipal Bond Trust</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock New Jersey Municipal Bond Trust</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;      BlackRock New York Municipal Bond Trust</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock Virginia Municipal Bond Trust</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock Municipal Income Trust II</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock California Municipal Income Trust II</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock New York Municipal Income Trust II</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock Insured Municipal Income Trust</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock California Insured Municipal Income Trust</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock Florida Insured Municipal Income Trust</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock New York Insured Municipal Income Trust</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(collectively the &#147;Trusts&#148;)</FONT><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We have audited the accompanying statements of assets and liabilities of the Trusts, including the portfolios of investments, as of August 31, 2004, the related statements of operations for the
year then ended, and the statements of changes in net assets and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Trusts&#146; management. Our
responsibility is to express an opinion on these financial statements and financial highlights based on our audits.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We conducted our audits in accordance with 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. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of August 31, 2004, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Trusts as of August 31, 2004,
the results of their operations for the year then ended, and the changes in their net assets and financial highlights for each of the periods presented in conformity with accounting principles generally accepted in the United States of
America.</FONT></P>
<P><FONT size=2 face="serif">/s/ Deloitte &amp; Touche LLP</FONT></P>
<P><IMG src="c33471_ncsrx157x1.jpg" border=0>
  <BR>
  <FONT size=2 face="serif">Boston, Massachusetts</FONT><BR>
  <FONT size=2 face="serif">October 25, 2004</FONT><BR>
</P>
<P align="center">
<FONT size=2 face="serif">77</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_158"></A>




<A name="page_159"></A>

<P>
<B><FONT face="serif">TRUSTEES INFORMATION (Unaudited)</FONT><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></P>
<HR noshade size=1>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD colspan=13><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
        <TD align=center colspan=13>
<B><FONT size=1 face="serif">Independent Trustees</FONT></B>
        </TD>
</TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Name, address, age</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Andrew F. Brimmer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Richard E. Cavanagh</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Kent Dixon</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">P.O. Box 4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">P.O. Box 4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">P.O. Box 4546</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York, NY 10163-4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York, NY 10163-4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York, NY 10163-4546</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=1 face="serif">Age:</FONT> <FONT size=1 face="serif">77</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 <FONT size=1 face="serif">Age: 58</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>

        <TD align=left>
 <FONT size=1 face="serif">Age:</FONT>&nbsp;<FONT size=1 face="serif">67</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD colspan=13><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Current positions held with</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lead Trustee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trustee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trustee</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">the Trusts</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Audit Committee Chairman</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Audit Committee Member</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Audit Committee Member</FONT><SUP><FONT size=1 face="serif">2</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Term of office and length</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">/ since inception</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">/ since inception</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">/ since inception</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">of time served</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=13><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Principal occupations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">President of Brimmer &amp; Company, Inc., a</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">President and Chief Executive Officer of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Consultant/Investor. Former President and</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">during the past five years</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Washington, D.C.-based economic and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">The Conference Board, Inc., a leading</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chief Executive Officer of Empire Federal</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">financial consulting firm, also Wilmer D.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">global business research organization,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Savings Bank of America and Banc PLUS</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Barrett Professor of Economics, University</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">from 1995-present. Former Executive</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Savings Association, former Chairman of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of Massachusetts &#150; Amherst. Formerly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dean of the John F. Kennedy School of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">the Board, President and Chief Executive</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">member of the Board of Governors of the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Government at Harvard University from</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Officer of Northeast Savings.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Federal Reserve System. Former</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">1988-1995. Acting Director, Harvard</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chairman, District of Columbia Financial</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Center for Business and Government</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Control Board.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">(1991-1993). Formerly Partner (principal)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of McKinsey &amp; Company, Inc. (1980-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>

        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">1988). Former Executive Director of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Federal Cash Management, White House</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Office of Management and Budget (1977-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">1979). Co-author, THE WINNING PER-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">FORMANCE (best selling management</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">book published in 13 national editions).</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=13><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Number of portfolios</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">overseen within the fund</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">complex</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=13><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Other Directorships held</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director of CarrAmerica Realty</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trustee: Aircraft Finance Trust (AFT) and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Former Director of ISFA (the owner of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">outside of the fund</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Corporation and Borg-Warner Automotive.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Educational Testing Service (ETS).</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">INVEST, a national securities brokerage</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">complex</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Formerly Director of Airborne Express,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director, Arch Chemicals, Fremont Group</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">service designed for banks and thrift</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">BankAmerica Corporation (Bank of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">and The Guardian Life Insurance</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">institutions).</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">America), BellSouth Corporation, College</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Company of America.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Retirement Equities Fund (Trustee),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Commodity Exchange, Inc. (Public</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Governor), Connecticut Mutual Life</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Insurance Company, E.I. du Pont de</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Nemours &amp; Company, Equitable Life</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Assurance Society of the United States,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Gannett Company, Mercedes-Benz of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">North America, MNC Financial</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Corporation (American Security Bank),</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">NCM Capital Management, Navistar</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">International Corporation, PHH Corp. and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">UAL Corporation (United Airlines).</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=13><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">For &#147;Interested Director/</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Trustee&#148; relationships,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">events or transactions by</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=5 align=left>
<FONT size=1 face="serif">reason of which the Trustee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">is an interested person as</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">defined in Section</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">2(a)(19)(1940 Act)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan="13">
<HR noshade size=1>
        </TD>
  </TR>
</TABLE>
<BR>
<P>
<SUP><FONT size=2 face="serif">1 </FONT></SUP><FONT size=2 face="serif">Interested Trustee as defined by Section 2(a)(19) of the Investment Company Act of 1940.</FONT></P>
<P>
<SUP><FONT size=2 face="serif">2 </FONT></SUP><FONT size=2 face="serif">The Board of each Trust has determined that each Trust has two Audit Committee financial experts serving on its Audit Committee, Dr. Brimmer and Mr. Dixon, both of whom are
independent for the purpose of the definition of Audit Committee financial expert as applicable to the Trusts.</FONT></P>
<P>
<SUP><FONT size=2 face="serif">3 </FONT></SUP><FONT size=2 face="serif">Appointed Audit Committee Member on May 25, 2004.</FONT></P>
<P>
<SUP><FONT size=2 face="serif">4 </FONT></SUP><FONT size=2 face="serif">Trustee since inception; appointed Chairman of the Board on August 22, 2002.</FONT></P>
<P>
<SUP><FONT size=2 face="serif">5 </FONT></SUP><FONT size=2 face="serif">The Board is classified into three classes of which one class is elected annually. Each Trustee serves a three year term concurrent with the class from which he is
elected.</FONT></P>
<P>
<SUP><FONT size=2 face="serif">6 </FONT></SUP><FONT size=2 face="serif">Except during the period 10/31/02 through 11/11/02 for all of the Trusts.</FONT></P>
<P>
<SUP><FONT size=2 face="serif">7 </FONT></SUP><FONT size=2 face="serif">Appointed Trustee on August 22, 2002, for the Bond Trusts and Income II Trusts. Trustee since inception for the Insured Trusts.</FONT></P>
<P>
<SUP><FONT size=2 face="serif">8 </FONT></SUP><FONT size=2 face="serif">Effective 12/11/03.</FONT></P>
<P align="center">
<FONT size=2 face="serif">78</FONT></P>

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<A name="page_160"></A>




<A name="page_161"></A>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD colspan=5><HR noshade size=1>
    </TD>
    <TD colspan=5><HR noshade size=1>
    </TD>
  </TR>
<TR valign="bottom">
        <TD colspan="7" align=left>
      <div align="center"><B><FONT size=1 face="serif">Independent Trustees (continued)</FONT></B>&nbsp;
      </div></TD>
        <TD colspan=5 align=center>
<B><FONT size=1 face="serif">Interested Trustees</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD colspan=5>
<HR noshade size=1>
        </TD>
        <TD colspan=5>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Frank J. Fabozzi</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">James Clayburn La Force, Jr.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Walter F. Mondale</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Ralph L. Schlosstein</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Robert S. Kapito</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">P.O. Box 4546</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">P.O. Box 4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">P.O. Box 4546</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">BlackRock, Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">BlackRock, Inc.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">New York, NY 10163-4546</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">New York, NY 10163-4546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York, NY 10163-4546</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">40 East 52nd Street</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">40 East 52nd Street</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left> <FONT size=1 face="serif">Age:</FONT> <FONT size=1 face="serif">56</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD align=left>
 <FONT size=1 face="serif">Age:</FONT>&nbsp;<FONT size=1 face="serif">75</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 <FONT size=1 face="serif">Age:</FONT>&nbsp;<FONT size=1 face="serif">76</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York, NY 10022</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York, NY 10022</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Age: 53</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 <FONT size=1 face="serif">Age:</FONT>&nbsp;<FONT size=1 face="serif">47</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan="12">
<HR noshade size=1>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Trustee</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Trustee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Trustee</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chairman of the Board </FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">President and Trustee</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Audit Committee Member </FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">/ since inception</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">/ since inception</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">/ since inception</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">/ since inception</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">3 years</FONT><SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">/ since August 22,</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=12><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Consultant. Editor of THE</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Dean Emeritus of the John E.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Senior Counsel, Dorsey &amp;</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director since 1999 and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Vice Chairman of BlackRock,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">JOURNAL OF PORTFOLIO</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Anderson Graduate School of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Whitney, LLP, a law firm</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">President of BlackRock, Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Inc. Head of the Portfolio</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">MANAGEMENT and</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Management, University of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">(January 2004-present);</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">since its formation in 1998 and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Management Group. Also a</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Frederick Frank Adjunct</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">California since July 1, 1993.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Partner, Dorsey &amp; Whitney,</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of BlackRock, Inc.&#146;s predeces-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">member of the Management</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Professor of Finance at the</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Acting Dean of the School of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">LLP, (December 1996-</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">sor entities since 1988. Member</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Committee, the Investment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">School of Management at Yale</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Business, Hong Kong</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">December 2003, September</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of the Management Committee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Strategy Group, the Fixed</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">University. Author and editor</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">University of Science and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">1987-August 1993). Formerly</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">and Investment Strategy Group</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Income and Global Operating</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">of several books on fixed</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Technology 1990-1993. From</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">U.S. Ambassador to Japan</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of BlackRock, Inc. Formerly,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Committees and the Equity</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">income portfolio management.</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">1978 to September 1993, Dean</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">(1993-1996). Formerly Vice</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Managing Director of Lehman</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Investment Strategy Group.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Visiting Professor of Finance</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">of the John E. Anderson</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">President of the United States,</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Brothers, Inc. and Co-head of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Responsible for the portfolio</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">and Accounting at the Sloan</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Graduate School of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">U.S. Senator and Attorney</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">its Mortgage and Savings</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">management of the Fixed</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">School of Management,</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Management, University of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">General of the State of</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Institutions Group. Currently,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Income, Domestic Equity and</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Massachusetts Institute of</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">California.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Minnesota. 1984 Democratic</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chairman and a Trustee of each</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">International Equity, Liquidity,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Technology from 1986 to</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Nominee for President of the</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of the closed-end Trusts in</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">and Alternative Investment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">August 1992.</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">United States.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">which BlackRock Advisors,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Groups of BlackRock. Currently</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Inc. acts as investment advisor.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">President and a Director/Trustee</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of each of the closed-end Trusts</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">in which BlackRock Advisors,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Inc. acts as investment advisor.</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=12><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">52</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=12><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Director, Guardian Mutual</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Payden &amp; Rygel Investment</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director of United Health</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chairman and President of the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chairman of the Hope and</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Funds Group (18 portfolios).</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Trust, Metzler-Payden</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Foundation and the Japan</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">BlackRock Liquidity Funds (10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Heroes Children&#146;s Cancer</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Investment Trust, Advisors</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Society. Member of the Hubert</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">portfolios), Director of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Fund. President of the Board</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Series Trust, Arena</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">H. Humphrey Institute of</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Anthracite Capital, Inc.</FONT><SUP><FONT size=1 face="serif">8 </FONT></SUP><FONT size=1 face="serif">and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of Directors of the Periwinkle</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">Pharmaceuticals, Inc. and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Public Affairs Advisory Board,</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director of several of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">National Theatre for Young</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">CancerVax Corporation.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">The Mike and Maureen</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">BlackRock&#146;s alternative invest-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Audiences. Director of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Mansfield Foundation, Dean&#146;s</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">ment vehicles. Currently, a</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">icruise.com, Corp.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Board of Visitors of the</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Member of the Visiting Board</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Medical School at the</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">of Overseers of the John F.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">University of Minnesota, and</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Kennedy School of Government</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">the Mayo Foundation Advisory</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">at Harvard University, the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Council to the President.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Financial Institutions Center</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Board of the Wharton School of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">the University of Pennsylvania, a</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">trustee of the American Museum</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">of Natural History, a trustee of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">the Public Theatre in New York</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">City, a trustee of Trinity School</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">in New York City and a Trustee</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">of New Visions for Public</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Education in New York City.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Formerly, a Director of Pulte</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Corporation and a Member of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Fannie Mae&#146;s Advisory Council.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12><HR noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director and President of the</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Director and Vice Chairman of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=1 face="serif">Advisor</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">the Advisor.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="12" align=left><HR noshade size=1></TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">79</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<div align="center"><A name="page_162"></A>




    <A name="page_163"></A>

  <B><FONT face="serif">DIVIDEND REINVESTMENT PLANS</FONT></B>
  <HR noshade size=1>
  <div align="left"><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to each Trust&#146;s Dividend Reinvestment Plan (the &#147;Plan&#148;), common shareholders are automatically enrolled to have all distributions of dividends and capital gains
  reinvested by EquiServe Trust Company, N.A. (the &#147;Plan Agent&#148;) in the respective Trust&#146;s shares pursuant to the Plan. Shareholders who elect not to participate in the Plan will receive all distributions in cash paid by check and
  mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent.</FONT></div>
</div>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Plan Agent serves as agent for the shareholders in administering the Plan. After a Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire
shares for the participants&#146; accounts, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (&#147;newly issued shares&#148;) or (ii) by purchase of outstanding shares on
the open market, on the Trust&#146;s primary exchange or elsewhere (&#147;open-market purchases&#148;). If, on the dividend payment date, the net asset value per share (&#147;NAV&#148;) is equal to or less than the market price per share plus
estimated brokerage commissions (such condition being referred to herein as &#147;market premium&#148;), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be
credited to each participant&#146;s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar
amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein
as &#147;market discount&#148;), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the
dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Plan Agent&#146;s fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage
commissions incurred with respect to the Plan Agent&#146;s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any
Federal income tax that may be payable on such dividends or distributions.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include
a service charge payable by the participants. Participants that request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be
directed to the Plan Agent at 250 Royall Street, Canton, MA 02021, or by calling (800) 699-1BFM.</FONT></P>
<div align="center"><B><FONT face="serif">ADDITIONAL INFORMATION</FONT></B>
  <HR noshade size=1>
  <div align="left"><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We are required by the Internal Revenue Code to advise you within 60 days of a Trust&#146;s tax year-end as to the Federal tax status of dividends paid by the Trusts during such tax year.
  Accordingly, during the tax year-ended September 30, 2004, all dividends paid by the Insured Trusts (the only Trusts with September 30th tax year-ends) were federally tax-exempt interest dividends with the exception of California Insured and Florida
  Insured which had ordinary income dividends of $0.0129 and $0.0754 per share, respectively.</FONT></div>
</div>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Joint Annual Meeting of Shareholders was held on May 26, 2004, to elect Class II Trustees for each of the following Trusts to three year terms, expiring in 2007:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=3 align=right>
      <div align="center"><B><FONT size=2 face="serif">Frank J. Fabozzi</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=3 align=right>
      <div align="center"><B><FONT size=2 face="serif">Walter F. Mondale</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=3 align=right>
      <div align="center"><B><FONT size=2 face="serif">Ralph L. Schlosstein</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan=3>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=3>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <div align="center"></div></TD>
        <TD colspan=3>
<HR align="center" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="center"><B><FONT size=2 face="serif">Votes </FONT></B><B><FONT size=2 face="serif">For </FONT></B></div></TD>
        <TD align=left><div align="center"></div></TD>
        <TD align=left><div align="center"><b><font size=2 face="serif">Votes </font></b><b><font size=2 face="serif">Withheld</font></b>&nbsp; </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Votes For</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Votes Withheld</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=right>
      <div align="center"><B><FONT size=2 face="serif">Votes For</FONT></B>&nbsp;
      </div></TD>
        <TD>
          <div align="center"></div></TD>
        <TD align=center>
      <div align="center"><B><FONT size=2 face="serif">Votes Withheld</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD><HR noshade size=1></TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,496</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,217,085</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">458,440</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,358,848</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">316,677</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,346</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">77</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,690,713</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">196,988</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,769,746</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">117,955</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,501</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,650,525</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">468,298</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,735,985</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">382,838</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">54</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,732,764</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">46,166</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,738,189</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">40,741</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,170</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,020,165</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31,884</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,030,297</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,752</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,992,733</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">103,209</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,042,515</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">53,427</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,774</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,805,034</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">129,861</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,839,068</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">95,827</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,074</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,588,030</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">75,474</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,604,984</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">58,520</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">716</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,641,720</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">44,904</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,663,865</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,759</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">603</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,880,997</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,864</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,885,206</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,655</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,184</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,608,300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">79,591</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,616,289</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">71,602</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">954</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,325,141</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,542</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,326,645</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">25,038</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,761</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,340,802</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">58,798</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,352,144</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">47,456</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">538</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,071,649</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31,447</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,092,586</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,510</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Quarterly performance and other information regarding the Trusts may be found on BlackRock&#146;s website, which can be accessed at http://www.blackrock.com/funds/cefunds/index.html. This
reference to BlackRock&#146;s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended, to incorporate BlackRock&#146;s website into this report.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Certain of the officers of the Trusts listed on the inside back cover of this Report to Shareholders are also officers of the Advisor or Sub-Advisor. They serve in the following capacities for
the Advisor or Sub-Advisor: Robert S. Kapito&#151;Director and Vice Chairman of the Advisor and the Sub-Advisor, Kevin M. Klingert, Henry Gabbay and Anne Ackerley&#151;Managing Directors of the Advisor and the Sub-Advisor, Richard M. Shea and James
Kong&#151;Managing Directors of the Sub-Advisor, Vincent B. Tritto&#151;Director of the Sub-Advisor, and Brian P. Kindelan&#151;Director of the Advisor.</FONT></P>
<P align="center">
<FONT size=2 face="serif">80</FONT></P>

<HR noshade align="center" width="100%" size=2><PAGE>


<A name="page_164"></A>




<A name="page_165"></A>

<P align="center">
<FONT size=6 face="serif">BlackRock Closed-End Funds</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Trustees</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT face="serif">Transfer Agent</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Ralph L. Schlosstein, </FONT><I><FONT size=2 face="serif">Chairman</FONT></I>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">EquiServe Trust Company, N.A.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Andrew F. Brimmer</FONT>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">250 Royall Street</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Richard E. Cavanagh</FONT>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Canton, MA 02021</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Kent Dixon</FONT>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">(800)</FONT> <FONT size=2 face="serif">699-1BFM</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Frank J. Fabozzi</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Robert S. Kapito</FONT>&nbsp;
        </TD>
        <TD align=left><FONT face="serif">Auction Agent</FONT><SUP><FONT face="serif">1</FONT></SUP>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">James Clayburn La Force, Jr.</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Bank of New York</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Walter F. Mondale</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">100 Church Street, 8th Floor</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">New York, NY 10286</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left><FONT face="serif">Officers</FONT>&nbsp; </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Robert S. Kapito, </FONT><I><FONT size=2 face="serif">President</FONT></I>&nbsp; </TD>
        <TD align=left><FONT face="serif">Auction Agent</FONT><SUP><FONT face="serif">2</FONT></SUP>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Henry Gabbay, </FONT><I><FONT size=2 face="serif">Treasurer</FONT></I>&nbsp; </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Deutsche Bank Trust Company Americas</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Bartholomew Battista, </FONT><I><FONT size=2 face="serif">Chief Compliance Officer</FONT></I>&nbsp; </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">60 Wall Street, 27th Floor</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Anne Ackerley, </FONT><I><FONT size=2 face="serif">Vice President</FONT></I>&nbsp; </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">New York, NY 10005</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Kevin M. Klingert, </FONT><I><FONT size=2 face="serif">Vice President</FONT></I>&nbsp; </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp; &nbsp; &nbsp;<font size=2 face="serif">Richard M. Shea, </font><i><font size=2 face="serif">Vice President/Tax</font></i>&nbsp; </TD>
        <TD align=left><FONT face="serif">Independent Registered Public Accountants</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">James Kong, </FONT><I><FONT size=2 face="serif">Assistant Treasurer</FONT></I>&nbsp; </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Deloitte &amp; Touche LLP</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Vincent B. Tritto, </FONT><I><FONT size=2 face="serif">Secretary</FONT></I>&nbsp; </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">200 Berkeley Street</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Brian P. Kindelan, </FONT><I><FONT size=2 face="serif">Assistant Secretary</FONT></I>&nbsp; </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Boston, MA 02116</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left><FONT face="serif">Investment Advisor</FONT>&nbsp; </TD>
        <TD align=left>
<FONT face="serif">Legal Counsel</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">BlackRock Advisors, Inc.</FONT>&nbsp; </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Skadden, Arps, Slate, Meagher &amp; Flom LLP</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">100 Bellevue Parkway</FONT>&nbsp; </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Four Times Square</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Wilmington, DE 19809</FONT>&nbsp; </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">New York, NY 10036</FONT>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">(800)</FONT> <FONT size=2 face="serif">227-7BFM</FONT>&nbsp; </TD>
        <TD align=left>&nbsp;
 </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;</TD>
        <TD align=left><FONT face="serif">Legal Counsel &#150; Independent Trustees</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT face="serif">Sub-Advisor</FONT><SUP><FONT face="serif">1</FONT></SUP>&nbsp; </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Debevoise &amp; Plimpton LLP</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">BlackRock Financial Management, Inc.</FONT>&nbsp; </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">919 Third Avenue</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">40 East 52nd Street</FONT>&nbsp; </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">New York, NY 10022</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">New York, NY 10022</FONT>&nbsp; </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;</TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">This report is for shareholder information. This is not a prospec-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT face="serif">Custodian</FONT>&nbsp; </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">tus intended for use in the purchase or sale of Trust shares.</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">State Street Bank and Trust Company</FONT>&nbsp; </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Statements and other information contained in this report are as</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">225 Franklin Street</FONT>&nbsp; </TD>
        <TD align=left>
<FONT size=2 face="serif">dated and are subject to change.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Boston, MA 02110</FONT>&nbsp; </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">BlackRock Closed-End Funds</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>____________</TD>
        <TD align=left><FONT size=2 face="serif">c/o BlackRock Advisors, Inc.</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=1 face="serif">1 For the Insured Trusts and Bond Trusts.</FONT>&nbsp; </TD>
        <TD align=left><FONT size=2 face="serif">100 Bellevue Parkway</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=1 face="serif">2 For the Income II Trusts.</FONT>&nbsp; </TD>
        <TD align=left><FONT size=2 face="serif">Wilmington, DE 19809</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;</TD>
        <TD align=left><FONT size=2 face="serif">(800)</FONT> <FONT size=2 face="serif">227-7BFM</FONT>&nbsp; </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called
&#147;householding&#148; and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the
mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800)227-7BFM.</FONT></P>
<P>
<FONT size=2 face="serif">The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisor&#146;s proxy voting policies and procedures. You may obtain a copy of these proxy voting policies
and procedures, without charge, by calling (800) 699-1236. These policies and procedures are also available on the website of the Securities and Exchange Commission (the &#147;Commission&#148;) at http://www.sec.gov.</FONT></P>
<P>
<FONT size=2 face="serif">Information on how proxies relating to the Trusts&#146; voting securities were voted (if any) by the Advisor during the most recent 12-month period ended June 30th is available, upon request, by calling (800) 699-1236 or on
the website of the Commission at http://www.sec.gov.</FONT></P>
<P>
<FONT size=2 face="serif">The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trust&#146;s Form N-Q will be available on the
Commission&#146;s website at http://www.sec.gov. Each Trust&#146;s Form N-Q, when available, may be reviewed and copied at the Commission&#146;s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference
Room may be obtained by calling 1-800-SEC-0330. Each Trust&#146;s Form N-Q, when available, may also be obtained, upon request, by calling (800) 699-1236.</FONT></P>

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<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td valign="top"><font size=1 face="sans-serif">This report is for shareholder information. This is not a prospectus intended</font><br>
      <font size=1 face="sans-serif">for use in the purchase or sale of Trust shares. Statements and other</font><br>
      <font size=1 face="sans-serif">information contained in this report are as dated and are subject to change.</font></td>
    <td><div align="right"><img src="c33471_ncsrx167x1.jpg" border=0></div></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=1 face="sans-serif">CEF-ANN-1</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<BR>
<BR>
<BR>

<HR noshade align="center" width="100%" size=2><PAGE>
<B><FONT face="serif">Item 2. Code of Ethics</FONT></B><FONT face="serif"> </FONT>
<br>
<FONT face="serif"> 	</FONT><p></P>
<TABLE width="100%">
<TR>
  <TD colspan="2" valign="top"><FONT face="serif">(a)</FONT><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. </FONT> </TD>
  </tr>
<TR>
  <TD width="5%" valign="top">&nbsp;</TD>
  <td valign="top">&nbsp;</td>
</tr>
<TR>
   <TD colspan="2" valign="top"><FONT face="serif">(b)</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Not applicable.</FONT></TD>
  </tr>
<tr>
  <td colspan="2" valign="top">&nbsp;</td>
</tr>
<tr>
   <td colspan="2" valign="top"><FONT face="serif">(c)</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Registrant has not amended its Code of Ethics during the period covered by</FONT> <FONT face="serif">the shareholder report presented in Item 1 hereto.</FONT></td>
  </tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
  <td colspan="2" valign="top"><FONT face="serif">(d)</FONT><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant has not granted a waiver or an implicit waiver from a provision of its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto. </FONT></td>
  </tr>
<tr>
  <TD valign="top">&nbsp;</TD>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
  <TD colspan="2" valign="top"><FONT face="serif">(e)</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Not applicable.</FONT></TD>
  </tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
  <td colspan="2" valign="top"><FONT face="serif">(f)</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Registrant 's Code of Ethics is attached as an Exhibit hereto.</FONT></td>
  </tr>
</TABLE>
<P><B><FONT face="serif">Item 3. Audit Committee Financial Expert</FONT></B><FONT face="serif"> </FONT></P>
<P>
<FONT face="serif">The Registrant 's Board of Trustees has determined that it has two audit committee financial experts serving on its audit committee, each of whom is an "independent" Trustees:  Dr. Andrew F. Brimmer and Mr. Kent Dixon.  Under
applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result
of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater
than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification. </FONT>
</P>
<P>
<B><FONT face="serif">Item 4. Principal Accountant Fees and Services. </FONT></B>
</P>
<P>
<FONT face="serif">(a) 	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Audit Fees</U>.  The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the
Trust's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $31,900 for the fiscal year ended August 31, 2004 and $39,700
for the fiscal year ended August 31, 2003. </FONT>
</P>
<P>
<FONT face="serif">(b) 	</FONT><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Audit-Related Fees</U></FONT><FONT face="serif">. The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably
related to the performance of the audit of the Trust's financial statements and are not reported</FONT>
</P>
<P>&nbsp;
</P>

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<A name="page_3"></A>

<TABLE>
<tr>
   <td valign="top" colspan="2"><FONT face="serif">above in Item 4(a) were $3,500 for the fiscal year ended August 31, 2004 and $10,800 for the fiscal year ended August 31, 2003. The nature of these services was attest services not required by
statute or regulation, overhead and out-of-pocket expenses.</FONT><BR></td>
</tr>
<tr>
  <td width="4%" valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td colspan="2" valign="top"><FONT face="serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="serif"><U>Tax Fees</U></FONT><FONT face="serif">. The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for
tax compliance, tax advice and tax planning were $9,200 for the fiscal year ended August 31, 2004 and $0 for the fiscal year ended August 31, 2003. The nature of these services was federal, state and local income and excise tax return preparation
and related advice and planning and miscellaneous tax advice.</FONT></td>
  </tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td colspan="2" valign="top"><FONT face="serif">(d)</FONT><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>All Other Fees</U></FONT><FONT face="serif">. The were no fees billed in each of the last two fiscal years for products and services provided by the principal accountant,
other than the services reported above in Items 4(a) through (c).</FONT></td>
  </tr>
<tr>
  <td valign="top">&nbsp;</td>
  <TD valign="top">&nbsp;</TD>
</TR>
<tr>
   <td colspan="2" valign="top"><FONT face="serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="serif"><U>Audit Committee Pre-Approval Policies and Procedures</U></FONT><FONT face="serif">.</FONT></td>
  </TR>
<TR>
   <td colspan="2" valign="top"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)</FONT> <FONT face="serif">The Trust has polices and procedures (the "Policy") for the pre-approval by the Trust's Audit Committee of Audit, Audit-Related, Tax and Other Services (as each is defined in the
Policy) provided by the Trust's independent auditor (the "Independent Auditor") to the Trust and other "Covered Entities" (as defined below). The term of any such pre-approval is 12 months from the date of pre-approval, unless the Audit Committee
specifically provides for a different period. The amount of any such pre-approval is set forth in the appendices to the Policy (the "Service Pre-Approval Documents"). At its first meeting of each calendar year, the Audit Committee will review and
re-approve the Policy and approve or re-approve the Service Pre-Approval Documents for that year, together with any changes deemed necessary or desirable by the Audit Committee. The Audit Committee may, from time to time, modify the nature of the
services pre-approved, the aggregate level of fees pre-approved or both.</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">For the purposes of the Policy, "Covered Services" means (A) all engagements for audit and non-audit services to be
provided by the Independent Auditor to the Trust and </FONT><font face="serif">(B)</font> <FONT face="serif">all engagements for non-audit services related directly to the operations and financial reporting or the Trust to be provided by the Independent Auditor to any Covered Entity, "Covered Entities" means (1) the Advisor or (2) any entity controlling, controlled by or under common control with the Advisor that provides ongoing services to the Trust.</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">In the intervals between the scheduled meetings of the Audit Committee, the Audit Committee delegates pre-approval authority under this Policy to the Chairman of the Audit Committee (the "Chairman"). The Chairman shall report any pre-approval decisions under this Policy to the Audit Committee at its next scheduled meeting. At each scheduled meeting, the Audit Committee will review with the Independent Auditor the Covered Services pre-approved by the Chairman pursuant to delegated authority, if any, and the fees related thereto. Based on these reviews, the Audit Committee can modify, at its discretion, the pre-approval originally granted by the Chairman pursuant to delegated authority. This modification can be to the nature of services pre-approved, the aggregate level of fees approved, or both. Pre-approval of Covered Services by the Chairman pursuant to delegated authority is expected to be the exception rather than the rule and the</FONT><BR></td>
  </TR>
<tr>
   <td valign="top" colspan="2"><div align="center"><FONT face="serif">2</FONT><BR>
   </div></td>
</tr>
</TABLE>

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   <td colspan="3" valign="top"><font face="serif">Audit Committee may modify or withdraw this delegated authority at any time the Audit Committee determines that it is appropriate to do so.</font><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="serif">Fee levels for all Covered Services to be provided by the Independent Auditor and pre-approved under this Policy will be established annually by the Audit Committee and set forth in the Service Pre-Approval Documents. Any increase in pre-approved fee levels will require specific pre-approval by the Audit Committee (or the Chairman pursuant to delegated authority).</font><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="serif">The terms and fees of the annual Audit services engagement for the Trust are subject to the specific pre-approval of the Audit Committee. The Audit Committee (or the Chairman pursuant to delegated authority) will approve, if necessary, any changes in terms, conditions or fees resulting from changes in audit scope, Trust structure or other matters.</font><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="serif">In addition to the annual Audit services engagement specifically approved by the Audit Committee, any other Audit services for the Trust not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority.) Requests or applications to provide Covered Services that require approval by the Audit Committee (or the Chairman pursuant to delegated authority) must be submitted to the Audit Committee or the Chairman, as the case may be, by both the Independent Auditor and the Chief Financial Officer of the respective Covered Entity, and must include a joint statement as to whether, in their view, (a) the request or application is consistent with the rules of the Securities and Exchange Commission ("SEC") on auditor independence and (b) the requested service is or is not a non-audit service prohibited by the SEC. A request or application submitted to the Chai




rman between scheduled meetings of the Audit Committee should include a discussion as to why approval is being sought prior to the next regularly scheduled meeting of the Audit Committee.</font></td>
  </tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td width="3%" valign="top">&nbsp;</td>
  <td width="94%" valign="top">&nbsp;</td>
</tr>
<tr>
   <td colspan="3" valign="top"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)</FONT> <FONT face="serif">All of the services described in each of Items 4(b) through (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation
S-X.</FONT></td>
  </tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top" colspan="2">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><FONT face="serif">(f)</FONT></td>
   <td valign="top" colspan="2"><FONT face="serif">Not applicable.</FONT></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top" colspan="2">&nbsp;</td>
</tr>
<tr>
   <td colspan="3" valign="top"><FONT face="serif">(g)</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The non-audit fees billed by the Trust's accountant for services rendered to the Trust, the Advisor or any entity controlling, controlled by, or under common control
with the Advisor that provides ongoing services to the registrant (except for any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor) that directly impacted the Trust for each
of the last two fiscal years were $12,800 for the fiscal year ended August 31, 2004 and $10,800 for the fiscal year ended August 31, 2003.</FONT></td>
  </tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top" colspan="2">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><FONT face="serif">(h)</FONT></td>
   <td valign="top" colspan="2"><FONT face="serif">Not applicable.</FONT></td>
</tr>
<tr>
  <td valign="top" colspan="3">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="3"><B><FONT face="serif">Item 5. Audit Committee of Listed Registrants.</FONT></B><BR><FONT face="serif">The Trust has a separately designated standing audit committee established in accordance with Section 3(a)(58)(A)
of the Securities Exchange Act of 1934. The audit committee</FONT><BR></td>
</tr>
<tr>
   <td valign="top" colspan="3"><div align="center"><FONT face="serif">3</FONT><BR>
   </div></td>
</tr>
</TABLE>

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<tr>
   <td valign="top" colspan="2"><FONT face="serif">of the Trust is comprised of: Dr. Andrew F. Brimmer; Richard E. Cavanagh; Kent Dixon and Frank Fabozzi.</FONT></td>
</tr>
<tr>
  <td valign="top" colspan="2">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="2"><B><FONT face="serif">Item 6. Schedule of Investments.</FONT></B><BR>
     <FONT face="serif">The Registrant&#146;s Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this
form.</FONT></td>
</tr>
<tr>
  <td valign="top" colspan="2">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="2"><B><FONT face="serif">Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.</FONT></B><BR><FONT face="serif">The Registrant has delegated the voting of proxies
relating to its voting securities to its investment advisor, BlackRock Advisors, Inc. (the "Advisor") and its sub-advisor, BlackRock Financial Management, Inc. (the "Sub-Advisor"). The Proxy Voting Policies and Procedures of the Advisor and
Sub-Advisor (the "Proxy Voting Policies") are attached as an Exhibit 99.PROXYPOL hereto.</FONT></td>
</tr>
<tr>
  <td valign="top" colspan="2">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="2"><B><FONT face="serif">Item 8. Purchases of Equity Securities by Closed-End Management Companies and Affiliated Purchasers.</FONT></B><BR><FONT face="serif">Not applicable.</FONT></td>
</tr>
<tr>
  <td valign="top" colspan="2">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="2"><B><FONT face="serif">Item 9. Submission of Matters to a Vote of Security Holders.</FONT></B><BR>
     <FONT face="serif">Not applicable.</FONT></td>
</tr>
<TR>
  <TD valign="top" colspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD valign="top" colspan="2"><B><FONT face="serif">Item 10. Controls and Procedures.</FONT></B></TD>
</TR>
<TR>
  <TD valign="top">&nbsp;</TD>
  <td width="97%" valign="top">&nbsp;</td>
</tr>
<TR>
   <TD colspan="2" valign="top"><FONT face="serif">(a)</FONT>&nbsp;&nbsp;&nbsp;<FONT face="serif">The Registrant's principal executive officer and principal financial officer have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and
have concluded that the Registrant&#146;s disclosure controls and procedures are effective, as of a date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported
timely.</FONT></TD>
  </tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td colspan="2" valign="top"><FONT face="serif">(b)&nbsp;&nbsp;&nbsp;</FONT><FONT face="serif">The Registrant's principal executive officer and principal financial officer are aware of no changes in the Registrant's internal control over financial reporting that occurred
during the Registrant's most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.</FONT></td>
  </tr>
<tr>
  <td valign="top" colspan="2">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="2">&nbsp;<B><FONT face="serif">Item 11. Exhibits.</FONT></B></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><FONT face="serif">(a)</FONT></td>
   <td valign="top"><FONT face="serif">(1) Code of Ethics attached as EX-99.CODE ETH.</FONT></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><FONT face="serif">(a)</FONT></td>
   <td valign="top"><FONT face="serif">(2) Separate certifications of Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 attached as EX-99.CERT.</FONT></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><FONT face="serif">(a)</FONT></td>
   <td valign="top"><FONT face="serif">(3) Not applicable.</FONT></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><FONT face="serif">(b)</FONT></td>
   <td valign="top"><FONT face="serif">Certification of Principal Executive and Financial Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.906CERT.</FONT></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top"><FONT face="serif">Proxy Voting Policies attached as EX-99.PROXYPOL.</FONT></td>
</tr>
<tr>
  <td valign="top" colspan="2">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="2"><div align="center"><FONT face="serif">4</FONT><BR>
   </div></td>
</tr>
</TABLE>

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<B><FONT face="serif">SIGNATURES</FONT></B><FONT face="serif"> </FONT>
</P>
<P>
<FONT face="serif"> 	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.
</FONT>
</P>
<P>
<FONT face="serif">(Registrant)_____BlackRock Insured Municipal Income Trust___________</FONT>
</P>
<P>&nbsp;
</P>
<table width="50%"  border="0">
  <tr>
    <td width="8%"><font face="serif">By:</font></td>
    <td width="92%"><font face="serif">/s/ Henry Gabbay</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><HR noshade align="center" width="100%" size=1></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font face="serif">Name: Henry Gabbay</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font face="serif">Title: Treasurer </font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font face="serif">Date: October 25, 2004 </font></td>
  </tr>
</table>
<P>
<FONT face="serif"> 	Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates
indicated. </FONT>
</P>
<P>
  <FONT face="serif">Signatures
</FONT></P>
<table width="50%"  border="0">
  <tr>
    <td width="8%"><font face="serif">By:</font></td>
    <td width="92%"><font face="serif"> /s/ Robert S. Kapito</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><HR noshade align="center" width="100%" size=1></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font face="serif">Name: Robert S. Kapito</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font face="serif">Title: Principal Executive Officer</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font face="serif">Date: October 25, 2004 </font></td>
  </tr>
</table>
<P>
<FONT face="serif">Signatures
</FONT></P>
<table width="50%"  border="0">
  <tr>
    <td width="8%"><font face="serif">By:</font></td>
    <td width="92%"><font face="serif">/s/ Henry Gabbay</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><HR noshade align="center" width="100%" size=1></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font face="serif">Name: Henry Gabbay</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font face="serif">Title: Principal Financial Officer </font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font face="serif">Date: October 25, 2004 </font></td>
  </tr>
</table>
<P>&nbsp; </P>
<P align="center">
<FONT face="serif">5</FONT>
</P>

<HR noshade align="center" width="100%" size=2>



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<DOCUMENT>
<TYPE>EX-99.CODE ETH
<SEQUENCE>7
<FILENAME>c33471_ex99-codeeth.htm
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<HTML>
<HEAD>
   <TITLE>c33471_ex99-codeeth</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<div align="right"><A name="page_1"></A>
    <FONT face="serif">EX-99.CODE ETH</FONT>
</div>
<P align="center">
<B><FONT face="serif">JOINT CODE OF ETHICS </FONT></B>
<br>
<B><FONT face="serif">FOR </FONT></B>
<br>
<B><FONT face="serif">CHIEF EXECUTIVE AND SENIOR FINANCIAL OFFICERS </FONT></B>
<br>
<B><FONT face="serif">OF </FONT></B>
<br>
<B><FONT face="serif">THE BLACKROCK CLOSED-END FUNDS </FONT></B>
</P>
<P align="center">
<B><FONT face="serif">AS ADOPTED BY THE BOARDS OF TRUSTEES/DIRECTORS </FONT></B>
<br>
<B><FONT face="serif">MAY 2003 </FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Each BlackRock Closed-End Fund (each a &#147;Trust&#148; and, collectively, the &#147;Trusts&#148;)</FONT><SUP><FONT face="serif">1</FONT></SUP><FONT face="serif"> is committed to conducting business
in accordance with applicable laws, rules and regulations and the highest standards of business ethics, and to full and accurate disclosure -- financial and otherwise -- in compliance with applicable law. This Code of Ethics, applicable to the
Trust&#146;s Chief Executive Officer, President, Chief Financial Officer and Treasurer (or persons performing similar functions) (together, </FONT><U><FONT face="serif">&#147;Senior</FONT></U><FONT face="serif"> Officers&#148;), sets forth policies
to guide you in the performance of your duties. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">As a Senior Officer, you must comply with applicable law. You also have a responsibility to conduct yourself in an honest and ethical manner. You have leadership responsibilities that include creating
a culture of high ethical standards and a commitment to compliance, maintaining a work environment that encourages the internal reporting of compliance concerns and promptly addressing compliance concerns. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">This Code of Ethics recognizes that the Senior Officers are subject to certain conflicts of interest inherent in the operation of investment companies, because the Senior Officers currently or may in
the future serve as Senior Officers of each of the Trusts, as officers or employees of the Trust&#146;s investment advisor (the </FONT><U><FONT face="serif">&#147;Advisor</FONT></U><FONT face="serif">&#148;) and/or affiliates of the Trust&#146;s
investment advisor (collectively with the Advisor, &#147;BlackRock&#148;) and as officers or trustees/directors of other registered investment companies and unregistered investment funds advised by BlackRock. This Code of Ethics also recognizes that
certain laws and regulations applicable to, and certain policies and procedures adopted by, the Trust or BlackRock govern your conduct in connection with many of the conflict of interest situations that arise in connection with the operations of the
Trust, including: </FONT>
</P>
<P>&nbsp;
</P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td colspan="2"><hr align="left" width="250" size="1" noshade></td>
  </tr>
  <tr valign="top">
    <td width="7%"><font size=1 face="serif">1</font></td>
    <td width="93%"><font size=2 face="serif">This Joint Code of Ethics for Chief Executive and Senior Financial Officers has been adopted by the Board of Trustees/Directors for each Trust. Solely for the sake of clarity and simplicity, this Joint Code of Ethics has been drafted as if there is a single Trust, a single Governance Committee and a single Board of Trustees/Directors. The terms &#147;Trustees,&#148; &#147;Independent Trustees&#148; and &#147;Governance Committee&#148; mean the Trustees, the Independent Trustees and the Governance Committee of each Trust, respectively, unless the context otherwise requires. The Trustees, the Independent Trustees and the Governance Committee of each Trust, however, shall act separately and in the best interests of its respective Trust. </font> </td>
  </tr>
</table>
<P>&nbsp;</P>
<HR noshade align="center" width="100%" size=2>

<PAGE>
<A name="page_2"></A>

<UL>
<LI><FONT face="serif">the Investment Company Act of 1940, and the rules and regulation promulgated thereunder by the Securities and Exchange Commission (the &#147;<U>1940 Act</U>&#148;);</FONT><BR></LI>
<LI><FONT face="serif">the Investment Advisers Act of 1940, and the rules and regulations promulgated thereunder by the Securities and Exchange Commission (the &#147;<U>Advisers Act</U>&#148;);</FONT><BR></LI>
<LI><FONT face="serif">the Code of Ethics adopted by the Trust and the other Trusts pursuant to Rule 17j-1(c) under the 1940 Act (collectively, the </FONT><FONT face="serif">&#147;<U>Trust&#146;s 1940 Act Code of
Ethics</U>&#148;);</FONT><BR>
</LI>
<LI><FONT face="serif">one or more codes of ethics adopted by BlackRock that have been reviewed and approved by those trustees/directors (the &#147;<U>Trustees</U>&#148;) of the Trust that are not &#147;interested persons&#148; of the Trust (the
<U>&#147;Independent Trustees</U>&#148;) within the meaning of the 1940 Act (the &#147;<U>BlackRock&#146;s 1940 Act Code of Ethics</U>&#148; and,
together with the Trust&#146;s 1940 Act Code of Ethics, the &#147;<U>1940 Act Codes of Ethics</U>&#148;);</FONT><BR>
</LI>
<LI><FONT face="serif">the policies and procedures adopted by the Trust and the other Trusts to address conflict of interest situations, such as procedures under Rule 10f-3 and Rule 17a-7 under the 1940 Act (collectively, the &#147;<U>Trust
Policies</U>&#148;); and</FONT><BR></LI>
<LI><FONT face="serif">BlackRock's general policies and procedures to address, among other things, conflict of interest situations and related matters (collectively, the &#147;<U>BlackRock Policies</U>&#148;).</FONT><BR></LI>
</UL>
<P>
<FONT face="serif">The provisions of the 1940 Act, the Advisers Act, the 1940 Act Codes of Ethics, the Trust Policies and the BlackRock Policies are referred to herein collectively as the <U>&#147;Additional Conflict Rules</U>&#148;. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">This Code of Ethics is different from, and is intended to supplement, the Additional Conflict Rules. Accordingly, a violation of the Additional Conflict Rules by a Senior Officer is hereby deemed not
to be a violation of this Code of Ethics, unless and until the Governance Committee of the Trustees (the &#147;<U>Governance Committee</U>&#148;) shall determine that any such violation of the Additional Conflict Rules is also a violation of this Code of
Ethics. </FONT>
</P>
<P>
<B><FONT face="serif">Senior Officers Should Act Honestly and Candidly </FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Each Senior Officer has a responsibility to the Trust to act with integrity. Integrity requires, among other things, being honest and candid. Deceit and subordination of principle are inconsistent
with integrity. </FONT>
</P>
<P>
<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Senior Officer must: </FONT>
</P>
<P align="center">
<FONT face="serif">2 </FONT>
</P>

<HR noshade align="center" width="100%" size=2>

<PAGE>
<A name="page_3"></A>

<UL>
<LI><FONT face="serif">act with integrity, including being honest and candid while still maintaining the confidentiality of information where required by law or the Additional Conflict Rules;</FONT><BR></LI>
<LI><FONT face="serif">comply with the laws, rules and regulations that govern the conduct of the Trust&#146;s operations and report any suspected violations thereof in accordance with the section below entitled &#147;Compliance With Code Of
Ethics&#148;; and</FONT><BR></LI>
<LI><FONT face="serif">adhere to a high standard of business ethics.</FONT><BR></LI>
</UL>
<P>
<B><FONT face="serif">Conflicts Of Interest</FONT></B><FONT face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">A conflict of interest for the purpose of this Code of Ethics occurs when your private interests interfere in any way, or even appear to interfere, with the interests of the Trust. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Senior Officers are expected to use objective and unbiased standards when making decisions that affect the Trust, keeping in mind that Senior Officers are subject to certain inherent conflicts of
interest because Senior Officers of a Trust also are or may be officers of other Trusts, BlackRock and other funds advised or serviced by BlackRock (as a result of which it is incumbent upon you to be familiar with and to seek to comply with the
Additional Conflict Rules). </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">You are required to conduct the business of the Trust in an honest and ethical manner, including the ethical handling of actual or apparent conflicts of interest between personal and business
relationships. When making any investment, accepting any position or benefits, participating in any transaction or business arrangement or otherwise acting in a manner that creates or appears to create a conflict of interest with respect to the
Trust where you are receiving a personal benefit, you should act in accordance with the letter and spirit of this Code of Ethics. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">If you are in doubt as to the application or interpretation of this Code of Ethics to you as a Senior Officer of the Trust, you should make full disclosure of all relevant facts and circumstances to
the general counsel of BlackRock (the </FONT>&#147;<U>General Counsel</U>&#148;) and obtain the approval of the General Counsel prior to taking action.<SUP><FONT face="serif"> </FONT></SUP>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Some conflict of interest situations that should always be approved by the General Counsel, if material, include the following: </FONT>
</P>
<UL>
<LI><FONT face="serif">the receipt of any entertainment or non-nominal gift by the Senior Officer, or a member of his or her family, from any company with which the Trust has current or prospective business dealings (other than BlackRock), unless
such entertainment or gift is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;</FONT><BR></LI>
</UL>
<P align="center">
<FONT face="serif">3 </FONT>
</P>

<HR noshade align="center" width="100%" size=2>

<PAGE>
<A name="page_4"></A>

<UL>
<LI><FONT face="serif">any ownership interest in, or any consulting or employment relationship with, any of the Trust&#146;s service providers, other than BlackRock; or</FONT><BR></LI>
<LI><FONT face="serif">a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Trust for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Senior
Officer's employment by BlackRock, such as compensation or equity ownership.</FONT><BR></LI>
</UL>
<P>
<B><FONT face="serif">Disclosures </FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">It is the policy of the Trust to make full, fair, accurate, timely and understandable disclosure in compliance with all applicable laws and regulations in all reports and documents that the Trust
files with, or submits to, the Securities and Exchange Commission or a national securities exchange and in all other public communications made by the Trust. As a Senior Officer, you are required to promote compliance with this policy and to abide
by the Trust&#146;s standards, policies and procedures designed to promote compliance with this policy.  </FONT>
</P>
<P>
<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Senior Officer must: </FONT>
</P>
<UL>
<LI><FONT face="serif">familiarize himself or herself with the disclosure requirements applicable to the Trust as well as the business and financial operations of the Trust; and</FONT><BR></LI>
<LI><FONT face="serif">not knowingly misrepresent, or cause others to misrepresent, facts about the Trust to others, including to the Trustees, the Trust&#146;s independent auditors, the Trust&#146;s counsel, counsel to the Independent Trustees,
governmental regulators or self-regulatory organizations.</FONT><BR></LI>
</UL>
<P>
<B><FONT face="serif">Compliance With Code Of Ethics </FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">If you know of or suspect a violation of this Code of Ethics or other laws, regulations, policies or procedures applicable to the Trust, you must report that information on a timely basis to the
General Counsel or report it anonymously by following the &#147;whistle blower&#148; policies adopted by BlackRock from time to time. </FONT><I><FONT face="serif">No one will be subject to retaliation because of a good faith report of a suspected
violation</FONT></I><FONT face="serif">. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Trust will follow these procedures in investigating and enforcing this Code of Ethics, and in reporting on this Code of Ethics: </FONT>
</P>
<UL>
<LI><FONT face="serif">the General Counsel will take all appropriate action to investigate any actual or potential violations reported to him or her;</FONT><BR></LI>
<LI><FONT face="serif">violations and potential violations will be reported to the Governance Committee after such investigation;</FONT><BR></LI>
</UL>
<P align="center">
<FONT face="serif">4 </FONT>
</P>

<HR noshade align="center" width="100%" size=2>

<PAGE>
<A name="page_5"></A>

<UL>
<LI><FONT face="serif">if the Governance Committee determines that a violation has occurred, it will take all appropriate disciplinary or preventive action; and</FONT><BR></LI>
<LI><FONT face="serif">appropriate disciplinary or preventive action may include a letter of censure, suspension, dismissal or, in the event of criminal or other serious violations of law, notification of the Securities and Exchange Commission or
other appropriate law enforcement authorities.</FONT><BR></LI>
</UL>
<P>
<B><FONT face="serif">Waivers Of Code Of Ethics </FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Except as otherwise provided in this Code of Ethics, the General Counsel is responsible for applying this Code of Ethics to specific situations in which questions are presented to the General Counsel
and has the authority to interpret this Code of Ethics in any particular situation. The General Counsel shall take all action he or she considers appropriate to investigate any actual or potential violations reported under this Code of Ethics.
</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The General Counsel is authorized to consult, as appropriate, with the chair of the Governance Committee and with counsel to the Trust, BlackRock or the Independent Trustees, and is encouraged to do
so. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Governance Committee is responsible for granting waivers of this Code of Ethics, as appropriate. Any changes to or waivers of this Code of Ethics will, to the extent required, be disclosed on Form
N-CSR, or otherwise, as provided by Securities and Exchange Commission rules.</FONT>
</P>
<P>
<B><FONT face="serif">Recordkeeping </FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Trust will maintain and preserve for a period of not less than six (6) years from the date an action is taken, the first two (2) years in an easily accessible place, a copy of the information or
materials supplied to the Governance Committee: </FONT>
</P>
<UL>
<LI><FONT face="serif">that provided the basis for any amendment or waiver to this Code of Ethics; and</FONT><BR></LI>
<LI><FONT face="serif">relating to any violation of this Code of Ethics and sanctions imposed for such violation, together with a written record of the approval or action taken by the Governance Committee.</FONT><BR></LI>
</UL>
<P>
<B><FONT face="serif">Confidentiality </FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">All reports and records prepared or maintained pursuant to this Code of Ethics shall be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law
or this Code of Ethics, such matters shall not be disclosed to anyone other than the Independent Trustees and their counsel, the Trust and its counsel, BlackRock and its counsel and any other advisors, consultants or counsel retained by the
Trustees, the Independent Trustees or any committee of the Trustees. </FONT>
</P>
<P align="center">
<FONT face="serif">5 </FONT>
</P>

<HR noshade align="center" width="100%" size=2>

<PAGE>
<A name="page_6"></A>

<P>
<B><FONT face="serif">Amendments </FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">This Code of Ethics may not be amended except in written form, which is specifically approved by a majority vote of the Trustees, including a majority of the Independent Trustees. </FONT>
</P>
<P>
<B><FONT face="serif">No Rights Created </FONT></B>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">This Code of Ethics is a statement of certain fundamental principles, policies and procedures that govern each of the Senior Officers in the conduct of the Trust's business. It is not intended to and
does not create any rights in any employee, investor, supplier, competitor, shareholder or any other person or entity. </FONT>
</P>
<P align="center">
<FONT face="serif">6 </FONT>
</P>

<HR noshade align="center" width="100%" size=2>

<PAGE>
<A name="page_7"></A>

<P align="center">
<FONT face="serif">ACKNOWLEDGMENT FORM </FONT>
</P>
<P>
<FONT face="serif">I have received and read the Joint Code of Ethics for Chief Executive and Senior Financial Officers, and I understand its contents. I agree to comply fully with the standards contained in the Code of Ethics and the Company's
related policies and procedures. I understand that I have an obligation to report any suspected violations of the Code of Ethics on a timely basis to the General Counsel or report it anonymously by following the &#147;whistle blower&#148; policies
adopted by BlackRock from time to time. </FONT></P>
<P>&nbsp; </P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD>&nbsp;</TD>
  <TD><hr align="left" size="1" noshade></TD>
</TR>
<TR>
  <TD width="74%">&nbsp;</TD>
   <TD width="26%"><FONT face="serif">Printed Name</FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD><hr align="left" size="1" noshade></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
   <TD><FONT face="serif">Signature</FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD><hr align="left" size="1" noshade></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
   <TD><FONT face="serif">Date</FONT></TD>
</TR>
</TABLE>
<P align="center">
<FONT face="serif">7 </FONT>
</P>

<HR noshade align="center" width="100%" size=2>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>8
<FILENAME>c33471_ex99-cert.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 FINAL//EN">


<HTML>
<HEAD>
   <TITLE>c33471_ex99-cert</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<A name="page_1"></A>

<P align="right">
<B><FONT face="serif">EX-99.CERT</FONT></B>
</P>
<P>
<B><FONT face="serif">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER </FONT></B>
</P>
<P>
<B><U><FONT face="serif">CERTIFICATIONS</FONT></U></B><B><FONT face="serif"> </FONT></B>
</P>
<P>
<FONT face="serif">I, Robert Kapito, certify that: </FONT>
</P>
<P>
<FONT face="serif">1. I have reviewed this report on Form N-CSR of BlackRock Insured Municipal Income Trust; </FONT>
</P>
<P>
<FONT face="serif">2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report; </FONT>
</P>
<P>
<FONT face="serif">3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash
flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; </FONT>
</P>
<P>
<FONT face="serif">4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant
and have: </FONT>
</P>
<P>
<FONT face="serif">a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </FONT>
</P>
<P>
<FONT face="serif">b)</FONT><FONT size=2 face="sans-serif"></FONT><FONT face="serif">Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and</FONT><FONT size=2 face="sans-serif"> </FONT>
</P>
<P>
<FONT face="serif">c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and </FONT>
</P>
<P>
<FONT face="serif">5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): </FONT>
</P>


<P>
<FONT face="serif">a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process,
summarize, and report financial information; and </FONT>
</P>
<P>
<FONT face="serif">b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls. </FONT>
</P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD><font face="serif">Dated: </font></TD>
  <TD><font face="serif">October 25, 2004 </font></TD>
  <TD><div align="center"></div></TD>
</TR>
<TR>
  <TD width="9%">&nbsp;</TD>
   <TD width="20%"><hr noshade align="left" width="100%" size=1></TD>
   <TD width="71%" valign="top"><div align="center">
   </div></TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD><div align="center"><FONT face="serif">/s/ Robert S. Kapito</FONT></div></TD>
</TR>
<TR>
  <TD width="62%"></TD>
   <TD width="38%" valign="top"><div align="center">
     <HR noshade align="center" width="50%" size=1>
   </div></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
   <TD><div align="center"><FONT face="serif">Robert S. Kapito</FONT></div></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
   <TD><div align="center"><FONT face="serif">Principal Executive Officer</FONT></div></TD>
</TR>
</TABLE>

<p>&nbsp;</p>
<HR noshade align="center" width="100%" size=2>

<PAGE>
<A name="page_3"></A>

<P align="right">&nbsp;</P>
<P>
<B><FONT face="serif">CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER </FONT></B>
</P>
<P>
<B><U><FONT face="serif">CERTIFICATIONS</FONT></U></B><B><FONT face="serif"> </FONT></B>
</P>
<P>
<FONT face="serif">I, Henry Gabbay, certify that: </FONT>
</P>
<P>
<FONT face="serif">1. I have reviewed this report on Form N-CSR of BlackRock Insured Municipal Income Trust; </FONT>
</P>
<P>
<FONT face="serif">2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report; </FONT>
</P>
<P>
<FONT face="serif">3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash
flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; </FONT>
</P>
<P>
<FONT face="serif">4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant
and have: </FONT>
</P>
<P>
<FONT face="serif">a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </FONT>
</P>
<P>
<FONT face="serif">b)</FONT><FONT size=2 face="sans-serif"></FONT><FONT face="serif">Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and</FONT><FONT size=2 face="sans-serif"> </FONT>
</P>
<P>
<FONT face="serif">c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and </FONT>
</P>
<P>
<FONT face="serif">5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): </FONT>
</P>

<P>
<FONT face="serif">a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process,
summarize, and report financial information; and </FONT>
</P>
<P>
<FONT face="serif">b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls. </FONT>
</P><br>
<br>
<br>
<br>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><font face="serif">Dated: </font></TD>
    <TD colspan="2"><font face="serif">October 25, 2004</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="8%">&nbsp;</TD>
    <TD colspan="2"><hr noshade align="left" width="100%" size=1></TD>
    <TD width="35%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="4">&nbsp;</TD>
    <TD><div align="center"><FONT face="serif">/s/ Henry Gabbay</FONT></div></TD>
  </TR>
  <TR>
    <TD colspan="4">&nbsp;</TD>
    <TD width="36%"><div align="center">
      <HR noshade align="center" width="50%" size=1>
    </div></TD>
  </TR>
  <TR>
    <TD colspan="4">&nbsp;</TD>
    <TD><div align="center"><FONT face="serif">Henry Gabbay</FONT></div></TD>
  </TR>
  <TR>
    <TD colspan="4">&nbsp;</TD>
    <TD><div align="center"><FONT face="serif">Principal Financial Officer</FONT></div></TD>
  </TR>
</TABLE>
<P><FONT face="serif"><BR>
  </FONT>
</P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906CERT
<SEQUENCE>9
<FILENAME>c33471_ex99-906cert.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 FINAL//EN">


<HTML>
<HEAD>
   <TITLE>c33471_ex99-906cert</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<div align="right"><FONT face="serif">EX-99.906CERT</FONT> <A name="page_5"></A>

</div>
<P>
<B><U><FONT face="serif">SECTION 906 CERTIFICATION</FONT></U></B><FONT face="serif"> </FONT>
</P>
<P>
<FONT face="serif">Pursuant to 18 U.S.C. &sect; 1350, the undersigned officers of BlackRock Insured Municipal Income Trust (the "Company"), hereby certifies, to the best of their knowledge, that the Company's Report on Form N-CSR for the period
ended August 31, 2004, (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Company. </FONT>
</P>
<P>&nbsp;
</P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD><font face="serif">Dated: </font></TD>
  <TD><font face="serif">October 25, 2004 </font></TD>
  <TD><div align="center"></div></TD>
</TR>
<TR>
  <TD width="7%">&nbsp;</TD>
   <TD width="22%"><hr noshade align="left" width="100%" size=1></TD>
   <TD width="71%" valign="top"><div align="center">
   </div></TD>
</TR>
</TABLE>
<P>
   <br>
</P>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD colspan="2"><font face="serif">/s/ Robert S. Kapito</font></TD>
  <TD><div align="center"></div></TD>
</TR>
<TR>
  <TD colspan="2"><HR noshade align="left" width="35%" size=1></TD>
   <TD width="38%" valign="top"><div align="center">
   </div></TD>
</TR>
<TR>
  <TD width="4%"><FONT face="serif">Name: </FONT></TD>
   <TD width="58%"><font face="serif">Robert S. Kapito</font></TD>
   <TD><div align="center"></div></TD>
</TR>
<TR>
  <TD><FONT face="serif">Title:</FONT></TD>
   <TD><font face="serif">Principal Executive Officer</font></TD>
   <TD><div align="center"></div></TD>
</TR>
</TABLE>
<P>
<FONT face="serif"><br>
<br>
<br>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD colspan="2"><font face="serif">/s/ Henry Gabbay </font> </TD>
  <TD><div align="center"></div></TD>
</TR>
<TR>
  <TD colspan="2"><HR noshade align="left" width="35%" size=1></TD>
   <TD width="38%" valign="top"><div align="center">
   </div></TD>
</TR>
<TR>
  <TD width="4%"><FONT face="serif">Name: </FONT></TD>
   <TD width="58%"><FONT face="serif">Henry Gabbay </FONT> </TD>
   <TD><div align="center"></div></TD>
</TR>
<TR>
  <TD><FONT face="serif">Title:</FONT></TD>
   <TD><font face="serif">Principal Financial Officer</font></TD>
   <TD><div align="center"></div></TD>
</TR>
</TABLE>
</FONT><FONT face="serif"><br>
</FONT>

<P>&nbsp; </P>
<HR noshade align="center" width="100%" size=2>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.PROXYPOL
<SEQUENCE>10
<FILENAME>c33471_ex99-proxypol.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 FINAL//EN">


<HTML>
<HEAD>
   <TITLE>c33471_ex99-proxypol</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<p><A name="page_1"></A>
</p>
<p align="right">EX-99.PROXYPOL </p>
<P align="center">
<B><U><FONT face="serif">PROXY VOTING POLICY</FONT></U></B><FONT face="serif"> </FONT>
</P>
<P align="center">
<B><FONT face="serif">For </FONT></B>
</P>
<P align="center">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U><FONT face="serif">BlackRock Advisors, Inc. <br>
and Its Affiliated Registered Investment Advisers</FONT></U></B><FONT face="serif"> </FONT>
</P>
<P>
<U><FONT face="serif">Introduction</FONT></U><FONT face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">This Proxy Voting Policy ("Policy") for BlackRock Advisors, Inc. and its affiliated registered investment advisers ("BlackRock") reflects our duty as a fiduciary under the Investment Advisers Act of
1940 (the &#147;Advisers Act&#148;) to vote proxies in the best interests of our clients. In addition, the Department of Labor views the fiduciary act of managing ERISA plan assets to include the voting of proxies. Proxy voting decisions must be
made solely in the best interests of the pension plan&#146;s participants and beneficiaries. The Department of Labor has interpreted this requirement as prohibiting a fiduciary from subordinating the retirement income interests of participants and
beneficiaries to unrelated objectives. The guidelines in this Policy have been formulated to ensure decision-making consistent with these fiduciary responsibilities. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Any general or specific proxy voting guidelines provided by an advisory client or its designated agent in writing will supercede the specific guidelines in this Policy. BlackRock will disclose to our
advisory clients information about this Policy as well as disclose to our clients how they may obtain information on how we voted their proxies. Additionally, BlackRock will maintain proxy voting records for our advisory clients consistent with the
Advisers Act. For those of our clients that are registered investment companies, BlackRock will disclose this Policy to the shareholders of such funds and make filings with the Securities and Exchange Commission and make available to fund
shareholders the specific proxy votes that we cast in shareholder meetings of issuers of portfolio securities in accordance with the rules and regulations under the Investment Company Act of 1940.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Registered investment companies that are advised by BlackRock as well as certain of our advisory clients may participate in securities lending programs, which may reduce or eliminate the amount of shares eligible for voting by
BlackRock in accordance with this Policy if such shares are out on loan and cannot be recalled in time for the vote. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Implicit in the initial decision to retain or invest in the security of a corporation is approval of its existing corporate ownership structure, its management, and its operations. Accordingly, proxy
proposals that would change the existing status of a corporation will be reviewed carefully and supported only when it seems clear that the proposed changes are likely to benefit the corporation and its shareholders. Notwithstanding this favorable
predisposition, management will be assessed on an ongoing basis both in terms of its business capability and its dedication to the shareholders to ensure that our continued confidence remains warranted. If it is determined that management is acting
on its own behalf instead of for the well being of </FONT></P>
<P align="center">
<FONT size=1 face="serif"> 	</FONT><FONT face="serif">1</FONT>
</P>

<HR noshade align="center" width="100%" size=2>

<PAGE>
<A name="page_2"></A>

<P>
<FONT face="serif"> the corporation, we will vote to</FONT> <FONT face="serif">support shareholder proposals, unless other mitigating circumstances are present. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Additionally, situations may arise that involve an actual or perceived conflict of interest. For example, we may manage assets of a pension plan of a company whose management is soliciting proxies, or
a BlackRock employee involved with managing an account may have a close relative who serves as a director or executive of a company that is soliciting proxies regarding securities held in such account. In all cases, the manner in which we vote
proxies must be based on our clients&#146; best interests and not the product of a conflict.</FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">This Policy and its attendant recommendations attempt to generalize a complex subject. It should be clearly understood that specific fact situations, including differing voting practices in
jurisdictions outside the United States, might warrant departure from these guidelines. In such instances, the relevant facts will be considered, and if a vote contrary to these guidelines is indicated it will be cast and the reasons therefor
recorded in writing. </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Section I of the Policy describes proxy proposals that may be characterized as routine and lists examples of the types of proposals we would typically support.  Section II of the Policy describes
various types of non-routine proposals and provides general voting guidelines. These non-routine proposals are categorized as those involving: </FONT></P>
<P>&nbsp; </P>
<TABLE width="39%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR>
   <TD width="11%"><FONT face="serif">A.</FONT></TD>
   <TD width="89%"><FONT face="serif">Social Issues,</FONT></TD>
</TR>
<TR>
   <TD><FONT face="serif">B.</FONT></TD>
   <TD><FONT face="serif">Financial/Corporate Issues, and</FONT></TD>
</TR>
<TR>
   <TD><FONT face="serif">C.</FONT></TD>
   <TD><FONT face="serif">Shareholder Rights.</FONT></TD>
</TR>
</TABLE>
<p>&nbsp;</p>
<P>
<FONT face="serif">Finally, Section III of the Policy describes the procedures to be followed in casting a vote pursuant to these guidelines. </FONT>
</P>
<P align="center">
<FONT face="serif">2</FONT>
</P>

<HR noshade align="center" width="100%" size=2>

<PAGE>
<A name="page_3"></A>

<P align="center">
<FONT face="serif">SECTION I </FONT>
</P>
<P align="center">
<U><FONT face="serif">ROUTINE MATTERS</FONT></U><FONT face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Routine proxy proposals, amendments, or resolutions are typically proposed by management and meet the following criteria: </FONT>
</P>
<TABLE width="100%">
<TR>
  <TD width="2%" valign="top">&nbsp;</TD>
   <TD width="3%" valign="top"><FONT face="serif">1.</FONT><BR>
    &nbsp;&nbsp;</TD>
   <td width="95%" valign="top"><FONT face="serif">They do not measurably change the structure, management control, or operation of the corporation.</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
   <td valign="top"><FONT face="serif">2.</FONT><BR>
    &nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">They are consistent with industry standards as well as the corporate laws of the state of incorporation.</FONT><BR>   </td>
</tr>
</TABLE>
<TABLE width="100%">
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     <div align="center"><FONT face="serif"><u>Voting Recommendation</u></FONT><BR>
    </div></td>
</tr>
<tr>
  <td valign="top" colspan="3">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">BlackRock will normally support the following routine proposals:</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
  <td width="2%" valign="top">&nbsp;</td>
   <td width="3%" valign="top"><FONT face="serif">1.</FONT><BR>
    &nbsp;&nbsp;</td>
   <td width="95%" valign="top"><FONT face="serif">To increase authorized common shares.</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
   <td valign="top"><FONT face="serif">2.</FONT><BR>
    &nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To increase authorized preferred shares as long as there are not disproportionate voting rights per preferred share.</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
   <td valign="top"><FONT face="serif">3.</FONT><BR>
    &nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To elect or re-elect directors.</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
   <td valign="top"><FONT face="serif">4.</FONT><BR>
    &nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To appoint or elect auditors.</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
   <td valign="top"><FONT face="serif">5.</FONT><BR>
    &nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To approve indemnification of directors and limitation of directors&#146; liability.</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
   <td valign="top"><FONT face="serif">6.</FONT><BR>
    &nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To establish compensation levels.</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
   <td valign="top"><FONT face="serif">7.</FONT><BR>
    &nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To establish employee stock purchase or ownership plans.</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
   <td valign="top"><FONT face="serif">8.</FONT><BR>
    &nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To set time and location of annual meeting.</FONT><BR>   </td>
</tr>
</TABLE>
<P align="center">
<FONT face="serif">3</FONT>
</P>

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<PAGE>
<A name="page_4"></A>

<TABLE>
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     <div align="center"><FONT face="serif">SECTION II</FONT><BR>
    </div></td>
</tr>
<tr>
  <td valign="top" colspan="3"><div align="center"></div></td>
</tr>
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     <div align="center"><u><FONT face="serif">NON-ROUTINE PROPOSALS</FONT></u><BR>
    </div></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top" colspan="2">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="2%"><FONT face="serif">A.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top" colspan="2"><FONT face="serif">Social Issues</FONT><BR></td>
</tr>
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Proposals in this category involve issues of social conscience. They are typically proposed by shareholders who believe that the corporation&#146;s internally adopted
policies are ill-advised or misguided.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     <div align="center"><FONT face="serif"><u>Voting Recommendation</u></FONT><BR>
    </div></td>
</tr>
<tr>
  <td valign="top" colspan="3">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">If we have determined that management is generally socially responsible, we will generally vote <U>against</U> the
following shareholder proposals:</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="6%"><FONT face="serif">1.</FONT><BR>&nbsp;&nbsp;</td>
   <td width="92%" valign="top"><FONT face="serif">To enforce restrictive energy policies.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="6%"><FONT face="serif">2.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To place arbitrary restrictions on military contracting.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="6%"><FONT face="serif">3.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To bar or place arbitrary restrictions on trade with other countries.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="6%"><FONT face="serif">4.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To restrict the marketing of controversial products.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="6%"><FONT face="serif">5.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To limit corporate political activities.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="6%"><FONT face="serif">6.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To bar or restrict charitable contributions.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="6%"><FONT face="serif">7.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To enforce a general policy regarding human rights based on arbitrary parameters.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="6%"><FONT face="serif">8.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To enforce a general policy regarding employment practices based on arbitrary parameters.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="6%"><FONT face="serif">9.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To enforce a general policy regarding animal rights based on arbitrary parameters.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="6%"><FONT face="serif">10.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To place arbitrary restrictions on environmental practices.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%"><FONT face="serif">B.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top" colspan="2"><FONT face="serif"><u>Financial/Corporate Issues</u></FONT><BR></td>
</tr>
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Proposals in this category are usually offered by management and seek to change a corporation&#146;s legal, business or financial structure.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" colspan="3">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="3"><div align="center"><FONT face="serif">4</FONT><BR>
   </div></td>
</tr>
</TABLE>

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<PAGE>
<A name="page_5"></A>

<TABLE>
<tr>
   <td valign="top" colspan="3"><div align="center"><FONT face="serif"><u>Voting Recommendation</u></FONT><BR>
    </div></td>
</tr>
<tr>
  <td valign="top" colspan="3">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">We will generally vote in favor of the following management proposals provided the position of current shareholders is preserved or enhanced:</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">1.</FONT><BR>&nbsp;&nbsp;</td>
   <td width="94%" valign="top"><FONT face="serif">To change the state of incorporation.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">2.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To approve mergers, acquisitions or dissolution.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">3.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To institute indenture changes.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">4.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To change capitalization.</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top" colspan="2">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="2%"><FONT face="serif">C.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top" colspan="2"><FONT face="serif">Shareholder Rights</FONT><BR></td>
</tr>
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Proposals in this category are made regularly both by management and shareholders. They can be generalized as involving issues that transfer or realign board or
shareholder voting power.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">We typically would oppose any proposal aimed solely at thwarting potential takeover offers by requiring, for example, super-majority approval. At the same time, we
believe stability and continuity promote profitability. The guidelines in this area seek to find a middle road, and they are no more than guidelines. Individual proposals may have to be carefully assessed in the context of their particular
circumstances.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" colspan="3">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="3"><div align="center"><FONT face="serif"><u>Voting Recommendation</u></FONT><BR>
    </div></td>
</tr>
<tr>
  <td valign="top" colspan="3">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">We will generally <U>vote for</U> the following management proposals:</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">1.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To require majority approval of shareholders in acquisitions of a controlling share in the corporation.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">2.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To institute staggered board of directors.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">3.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To require shareholder approval of not more than 66 2/3% for a proposed amendment to the corporation&#146;s by-laws.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">4.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To eliminate cumulative voting.</FONT><BR></td>
</tr>
<tr>
   <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">5.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To adopt anti-greenmail charter or by-law amendments or to otherwise restrict a company&#146;s ability to make greenmail payments.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" colspan="3"><div align="center"></div></td>
</tr>
<tr>
   <td valign="top" colspan="3"><div align="center"><FONT face="serif">5</FONT><BR>
   </div></td>
</tr>
</TABLE>

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<A name="page_6"></A>

<TABLE>
<TR>
  <TD valign="top" width="2%">&nbsp;</TD>
   <TD valign="top" width="4%"><FONT face="serif">6.</FONT><BR>&nbsp;&nbsp;</TD>
   <td width="94%" valign="top"><FONT face="serif">To create a dividend reinvestment program.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">7.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To eliminate preemptive rights.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">8.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To eliminate any other plan or procedure designed primarily to discourage a takeover or other similar action (commonly known as a &#147;poison pill&#148;).</FONT><BR></td>
</tr>
<tr>
  <td valign="top" colspan="3">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">We will generally vote <U>against</U> the following management proposals:</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">1.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To require greater than 66 2/3% shareholder approval for a proposed amendment to the corporation&#146;s by-laws (&#147;super-majority provisions&#148;).</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">2.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To require that an arbitrary fair price be offered to all shareholders that is derived from a fixed formula (&#147;fair price amendments&#148;).</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">3.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To authorize a new class of common stock or preferred stock which may have more votes per share than the existing common stock.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">4.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To prohibit replacement of existing members of the board of directors.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">5.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To eliminate shareholder action by written consent without a shareholder meeting.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">6.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To allow only the board of directors to call a shareholder meeting or to propose amendments to the articles of incorporation.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">7.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To implement any other action or procedure designed primarily to discourage a takeover or other similar action (commonly known as a &#147;poison pill&#148;).</FONT><br>
    <BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">8.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To limit the ability of shareholders to nominate directors.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" colspan="3">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">We will generally vote <U>for</U> the following shareholder proposals:</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">1.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To rescind share purchases rights or require that they be submitted for shareholder approval, but only if the vote required for approval is not more than 66 2/3%.</FONT><br>
    <BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">2.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To opt out of state anti-takeover laws deemed to be detrimental to the shareholder.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">3.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To change the state of incorporation for companies operating under the umbrella of anti-shareholder state corporation laws if another state is chosen with favorable laws in this and other areas.</FONT><BR>
    <br></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">4.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To eliminate any other plan or procedure designed primarily to discourage a takeover or other similar action.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" colspan="3">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="3"><div align="center"><FONT face="serif">6</FONT><BR>
   </div></td>
</tr>
</TABLE>

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<PAGE>
<A name="page_7"></A>

<TABLE>
<TR>
  <TD valign="top" width="2%">&nbsp;</TD>
   <TD valign="top" width="4%"><FONT face="serif">5.</FONT><BR>&nbsp;&nbsp;</TD>
   <td width="94%" valign="top"><FONT face="serif">To permit shareholders to participate in formulating management&#146;s proxy and the opportunity to discuss and evaluate management&#146;s director nominees, and/or to nominate shareholder nominees to the
board.</FONT><br>
<BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">6.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To require that the board&#146;s audit, compensation, and/or nominating committees be comprised exclusively of independent directors.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">7.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To adopt anti-greenmail charter or by-law amendments or otherwise restrict a company&#146;s ability to make greenmail payments.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">8.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To create a dividend reinvestment program.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">9.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To recommend that votes to &#147;abstain&#148; not be considered votes &#147;cast&#148; at an annual meeting or special meeting, unless required by state law.</FONT><br>
    <BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">10.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To require that &#147;golden parachutes&#148; be submitted for shareholder ratification.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" colspan="3">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">We will generally vote <U>against</U> the following shareholder proposals:</FONT><BR></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">1.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To restore preemptive rights.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">2.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To restore cumulative voting.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">3.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To require annual election of directors or to specify tenure.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">4.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To eliminate a staggered board of directors.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">5.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To require confidential voting.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">6.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To require directors to own a minimum amount of company stock in order to qualify as a director or to remain on the board.</FONT><BR></td>
</tr>
<tr>
  <td valign="top" width="2%">&nbsp;</td>
   <td valign="top" width="4%"><FONT face="serif">7.</FONT><BR>&nbsp;&nbsp;</td>
   <td valign="top"><FONT face="serif">To dock director pay for failing to attend board meetings.</FONT><BR></td>
</tr>
<tr>
  <td height="26" colspan="3" valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" colspan="3"><div align="center"><FONT face="serif">7</FONT><BR>
   </div></td>
</tr>
</TABLE>

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<PAGE>
<A name="page_8"></A>

<P align="center">
<FONT face="serif">SECTION III </FONT>
</P>
<P align="center">
<U><FONT face="serif">VOTING PROCESS</FONT></U><FONT face="serif"> </FONT>
</P>
<P>
<FONT face="serif"> 	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock has engaged a third-party service provider to assist us in the voting of proxies. These guidelines have been provided to this service provider, who then analyzes all proxy solicitations we receive for our clients and
makes recommendations to us as to how, based upon our guidelines, the relevant votes should be cast. These recommendations are set out in a report that is provided to the relevant Portfolio Management Group team, who must approve the proxy vote in
writing and return such written approval to the Operations Group. If any authorized member of a Portfolio Management Group team desires to vote in a manner that differs from the recommendations, the reason for such differing vote shall be noted in
the written approval form. A copy of the written approval form is attached as an exhibit. The head of each relevant Portfolio Management Group team is responsible for making sure that proxies are voted in a timely manner. The Brokerage Allocation
Committee shall receive regular reports of all proxy votes cast to review how proxies have been voted, including reviewing votes that differ from recommendations made by our third-party service provider and votes that may have involved a potential
conflict of interest. The Committee shall also review these guidelines from time to time to determine their continued appropriateness and whether any changes to the guidelines or the proxy voting process should be made. </FONT>
</P>
<P>
<FONT face="serif"> 	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IF THERE IS ANY POSSIBILITY THAT THE VOTE MAY INVOLVE A MATERIAL CONFLICT OF INTEREST BECAUSE, FOR EXAMPLE, THE ISSUER SOLICITING THE VOTE IS A BLACKROCK CLIENT OR THE MATTER BEING VOTED ON INVOLVES BLACKROCK, PNC OR ANY
AFFILIATE (INCLUDING A PORTFOLIO MANAGEMENT GROUP EMPLOYEE) OF EITHER OF THEM, PRIOR TO APPROVING SUCH VOTE, THE BROKERAGE ALLOCATION COMMITTEE MUST BE CONSULTED AND THE MATTER DISCUSSED. The Committee, in consultation with the Legal and Compliance
Department, shall determine whether the potential conflict is material and if so, the appropriate method to resolve such conflict, based on the particular facts and circumstances, the importance of the proxy issue, whether the Portfolio Management
Group team is proposing a vote that differs from recommendations made by our third-party service provider with respect to the issue and the nature of the conflict, so as to ensure that the voting of the proxy is not affected by the potential
conflict.  If the conflict is determined not to be material, the relevant Portfolio Management Group team shall vote the proxy in accordance with this Policy. Determinations of the Committee with respect to votes involving material conflicts of
interest shall be documented in writing and maintained for a period of at least six years. </FONT>
</P>
<P>
<FONT face="serif"> 	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to votes in connection with securities held on a particular record date but sold from a client account prior to the holding of the related meeting, BlackRock may take no action on proposals to be voted on in such
meeting. </FONT>
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<P>
<FONT face="serif"> 	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to voting proxies of non-U.S. companies, a number of logistical problems may arise that may have a detrimental effect on BlackRock&#146;s ability to vote such proxies in the best interests of our clients.  These
problems include, but </FONT></P>
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<FONT face="serif">are </FONT> <FONT face="serif">not limited to, (i) untimely and/or inadequate notice of shareholder meetings, (ii) restrictions on the ability of holders outside the issuer's jurisdiction of organization to exercise votes, (iii) requirements to vote proxies in person, if not practicable, (iv) the
imposition of restrictions on the sale of the securities for a period of time in proximity to the shareholder meeting, and (v) impracticable or inappropriate requirements to provide local agents with power of attorney to facilitate the voting
instructions. Accordingly, BlackRock may determine not to vote proxies if it believes that the restrictions or other detriments associated with such vote outweigh the benefits that will be derived by voting on the company's proposal. </FONT>
</P>
<P align="center">
<FONT face="serif"> 	 	 	 	</FONT><B><FONT face="serif">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* 	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 	*</FONT></B><FONT face="serif"> </FONT>
</P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Any questions regarding this Policy may be directed to the General Counsel of BlackRock. </FONT></P>
<P><FONT face="serif">Approved: October 21, 1998 </FONT></P>
<P><FONT face="serif">Revised: May 27, 2003 </FONT></P>
<P>&nbsp; </P>
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